The Comptroller-General of Customs, Cgc Bashir Adewale Adeniyi MFR on Wednesday stated that in 2023, the Service, generated sum of ₦3,206,603,417,315.47, marking a noteworthy 21.4% increase from the preceding year's total revenue of ₦2,641,616,673,501.83.
CGC, who disclosed this in his press briefing at Customs Headquarters, Abuja said, the growth in revenue as against 2022, aligns with the NCS's consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022.
"The consecutive expansion in revenue underscores the Service's sustained efforts in optimizing revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions.
"This achievement is particularly remarkable given the challenges within
the operational environment. Operational challenges such as lower transaction
volumes, compliance issues, inadequate infrastructure, and capacity gaps were
compounded by delays in policy implementation and socio-political factors.
"The anxiety associated with a major election year, the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills, temporarily impacted purchasing power and overall economic activities.
"The transition of power to the President Tinubu-led Administration brought about new policy direction, including the removal of fuel subsidy, the floating of the exchange rate, and the closure of Nigeria's Northern borders with Niger Republic, adding
another layer of complexity.
"These challenges led to a revenue shortfall of ₦532 billion in the first
half of the year, falling short of the projected revenue target of ₦1.84 trillion. However, a positive transformation occurred in the later part of the year,
following my appointment as the Comptroller-General in July.
"This was accompanied by a merit-based reconstitution of the management team, resulting in a significant shift that enabled the Service to exceed monthly revenue targets by 6.71% for the first time in 2023. Monthly revenue collection for the latter half of the year averaged NGN 332.9 billion, a substantial increase from the initial
NGN 201.7 billion recorded in the first half of the year.
"This positive trend can be attributed to strategic measures, including the immediate establishment of a
Revenue Review Recovery Team and the dissolution of existing Strike Force
Teams, streamlining enforcement under the Federal Operations Unit (FOU).
"Additionally, strategic reassignments of Customs Area Controllers, the creation
of an ideas bank, and extensive stakeholder engagements collectively contributed
to this impressive resurgence", Adeniyi explained.
The improved revenue collection in the latter half of 2023, according to CGC, played a crucial role in significantly reducing the revenue shortfall by 10%, decreasing from ₦532 billion to ₦478 billion by year-end. "This calculation is based on the
government's projected revenue collection by the Nigeria Customs Service (NCS)
of ₦3.684 trillion and the actual collection of ₦3.206 trillion", he said.
Moreover, according to the anti-smuggling czar, the deficit in NCS revenue collection can be ascribed to deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy.
"Specifically, the government approved a concession of NGN 2 trillion, incorporating select dutiable items under the new Tariff heading Chapter 99. This policy shift resulted in the exemption of duty payments on certain dutiable goods, previously falling within a duty range of 5% to 10%. The overarching objective of these granted waivers and concessions was twofold: to stimulate development across diverse economic sectors and to bolster
the nation's overall peace and security", he said.
The NCS, according to CGC, sustained its vigorous campaign against smuggling and illicit trade, culminating in 3,806 seizures with a Duty Paid Value totalling NGN 16,
049,023,262. "These confiscations encompassed a diverse array of contraband, including Arms and Ammunition, Artifacts and Antiquities, illicit drugs, expired food produce, and endangered species of flora and fauna.
"Remarkably, the NCS achieved 52 convictions, with 11 specifically linked to the illicit trade in Animal/Wildlife. Noteworthy is the international acknowledgment garnered for
the Service's efforts in combating this illicit trade in Animal/Wildlife. This
steadfast commitment underscores the NCS's dedication to protecting Nigerian
society, maintaining a resolute stance against smugglers, and diligently
dismantling their operations".
Going forward, Adeniyi said, numerous strategic initiatives are poised to positively
impact the Service's performance in the coming months. "These initiatives include
the introduction of the Advanced Ruling system, aligning NCS operations with global best practices and meeting the recommendations of the World Trade
Organization Trade Facilitation Agreement (WTO TFA).
"Additionally, the inauguration of a Steering Committee on the Implementation of Authorized Economic Operators (AEO) for Compliant Traders underscores our readiness to transition from Fastrack 2.0 to the AEO concept. Engagements with the international community, such as those with the World Customs Organization (WCO), JICA, and Japan Customs, focused on key areas is expected to lead to the implementation of the Customs Laboratory, adoption of geospatial technology, and the conduct of a Time Release Study. Collaborative efforts with the Customs Administration of the Republic of Benin, the revitalization of zonal structures, and integration of Customs institutions into the administrative framework all contribute to NCS's commitment to efficient service delivery and positive stakeholder relationships.
"The NCS also responded to changes in
legislation, engagement with the National Trade Facilitation Committee (NTFC),
initiated Corporate Social Responsibility projects, integrated efforts with the
Federal Road Safety Corps (FRSC), enhanced personnel welfare programs, and
introduced the Work-Life Balance (WLB) initiative.
"In the upcoming week, the NCS is set to inaugurate an electronic auction (e-auction) platform, strategically designed to enhance transparency in the auction process. These collective actions signify NCS's dedication to enhancing staff welfare and sustaining optimal performance".
For the fiscal year 2024, the NCS, according to CGC Adeniyi, has been allocated a new revenue target of ₦5.079 trillion, aligning with the government's economic objectives.
This target, he said, signifies the government's confidence in the NCS's capabilities and underscores the Service's important role in contributing to the nation's fiscal wellbeing.
"The strategic initiatives detailed above, alongside other operational reforms, are anticipated to play a crucial role in achieving this revenue goal. As the NCS addresses the challenges and opportunities in 2024, the Service is steadfast in its commitment to implementing these strategies and exploring practical approaches to meet the heightened revenue target. This commitment aligns with the NCS's ongoing dedication to efficiency, excellence, and positive contributions to Nigeria's economic landscape".
The Customs boss said, "Notwithstanding these concerted efforts, NCS is also conscious of the topical trends and issues that will impact the Service operations in 2024. They include: (a). Alignment with Government Policy Direction. The President Bola Ahmed Tinubu Led Administration has identified eight priority areas, including food security, poverty eradication, growth, job creation, access to capital, inclusion, rule of law, and fighting corruption. In addition to
these priority areas, NCS has identified 21 relevant areas outlined in the Policy Advisory document. These areas will continue to shape NCS's operations throughout 2024, aligning with the broader policy goals of the government.
(b). African Continental Free Trade Area (AfCFTA). Nigeria's pivotal leadership role is underscored by its distinction as the largest and most populous country in Africa, boasting a significant industrial presence.
Notably, Lagos alone contributes substantially, accounting for 80% of
Africa's Cultural Services export. The inception of the Guided Trade Initiative (GTI) on October 7, 2022, saw over 30 countries participating, with Customs assuming a leading role in the implementation of the AfCFTA. As the driving force behind AfCFTA execution, Customs holds a central position in shaping government trade policy. The NCS is
resolutely committed to actively contributing and playing a pivotal role in
aligning its operations with the dynamic facets of AfCFTA.
(c). Customs Modernization. NCS recognizes the constant evolution of its operating environment, influenced by technological advancements shaping customs operations. These trends will be integral to NCS activities, and the service is committed to staying abreast of technological changes, ensuring continuous modernization to enhance
efficiency and effectiveness.
(d). Border Management. The zero-tolerance approach towards smuggling, especially of petroleum products out of the country, will be rigorously enforced. NCS remains resolute in addressing border
management challenges, balancing security concerns with trade facilitation.
(e). Leveraging on NCS Act to Implement Modern Procedures. The NCS Act, signed in May 2023, provides a platform for modernizing operations, enabling initiatives such as the AEO program and the
Advanced Ruling System. NCS is committed to leveraging this act to
explore further areas for enhancing the trade experience in Nigeria, ensuring efficiency and effectiveness.
(f). Stakeholder Engagement. The year 2024, dedicated by the WCO to Engaging Traditional and New Partners with Purpose,
underscores the importance of collaboration. Building on the foundations
laid during the just concluded Comptroller-General of Customs Conference in December 2023, a joint declaration by NCS and stakeholders commits to working more effectively. NCS will rigorously pursue these engagements based on timelines and deliverables.
(g). Intensive Capacity Building Initiatives. With the imminent departure of over 50% of our management staff, who have rendered
meritorious service for up to 35 years, the NCS foresees a substantial turnover. This impending change, combined with the dynamic global trade environment influenced by advancements in Artificial Intelligence and Data Analytics, underscores the necessity for an ongoing enhancement of the workforce's skill set. Recognizing these imperatives, the NCS is
resolutely dedicated to executing intensive capacity-building initiatives.
These endeavours are designed to uplift the capabilities of younger officers, ensuring a seamless transition without disruptions to activities and operations. The Service remains committed to effectively managing this transitional phase, complemented by the ongoing training of officers in data analytics and other Customs operations as part of the continuous skill upgrade process.
(h). Exchange rate effect. A notable factor influencing NCS operations is the fluctuation in exchange rate. The Service acknowledges the impact of currency exchange variations on trade dynamics and revenue collection. NCS aims to address this challenge proactively by considering
strategies to mitigate potential adverse effects. One of the key strategies is
to regularly update the exchange rate in line with the going market conditions. This approach is geared towards ensuring optimal revenue performance in the face of currency fluctuations and maintaining
adaptability to changes in our operational environment.
He added, "As we advance in 2024, the NCS is committed to strategically charting its
course for the future. The global and national trends, including the AfCFTA and
WCO theme, will shape customs operations. The focus remains on aligning NCS activities with government policy, enhancing stakeholder engagements, and
fortifying operational preparedness through technological advancements and capacity building. The NCS will continue to adapt to emerging challenges, foster collaborations, and uphold its commitment to integrity and administrative procedures. The outlined strategies, coupled with ongoing initiatives, are poised to facilitate the achievement of the newly set revenue target of NGN 5.079 trillion for the fiscal year 2024. The Service invites all stakeholders to actively participate in this collective journey towards a more efficient, transparent, and revenueoptimized customs operation for the benefit of the nation.
"In the face of these goals, I must emphasize that the NCS will maintain a
zero-tolerance stance towards indiscipline and non-compliance in the year 2024.
It is imperative for all officers and stakeholders to adhere strictly to established procedures and regulations. Maximum cooperation is expected from every stakeholder in the customs operations.
"The success of our collective efforts depends on the discipline and commitment of each member. Let this be a year where every action is aligned with the principles of efficiency, transparency, and revenue optimization with the overall aim of contributing meaningfully to the economic prosperity of our nation".
By Adetokunbo FAKEYE
No comments:
Post a Comment