Reps query customs over N3.2trn revenue, demand detailed auction, export records

2026-03-03 - 16:57

By Gift ChapiOdekina, Abuja The House of Representatives Committee on Finance on Tuesday scrutinized the Nigeria Customs Service (NCS) over its revenue performance between 2023 and 2025, demanding detailed breakdowns of auction proceeds, contractor registrations and export documentation. The session Chaired by the Committee Chairman, James Faleke, focused largely on revenue generation, performance gaps and measures to boost collections amid dwindling federal resources. “We are looking at revenue. How do we shore up more money for this country? We are tired of borrowing. We don’t want to borrow anymore,” the Chairman said. N3.2trn Collected in 2023 Presenting the agency’s performance, the Comptroller-General of Customs, Bashir Adeniyi, said the Service’s revenue base rests on three major heads: import duty, excise duty and fees. “As a kind of background, the revenue base for the Nigeria Customs Service is basically three heads. We have import duty, we have excise duty, and then we have various fees that are collected from different services,” he explained. He disclosed that in 2023, Customs generated N3.2 trillion, falling short of the N3.67 trillion target. “In 2023, we collected total revenue of N3.2 trillion as against a target of N3.67 trillion,” he said, noting that performance was about 87 per cent. According to him, economic headwinds in the first half of 2023 significantly affected performance, including currency redesign and election-related slowdowns, as well as exchange rate volatility. However, collections rebounded in the second half of the year. 2024 Revenue Surpasses Target at N6.1trn Providing updates for 2024, the Comptroller-General said the Service exceeded its revenue target of N5.079 trillion, generating N6.1 trillion during the fiscal year. “For 2024, our target was N5.079 trillion. Our revenue for 2024 was N6.1 trillion. The details are as provided,” he told lawmakers, referencing documents submitted to the committee. He attributed the improved performance to a mix of policy implementation, operational reforms and strategic interventions carried out in 2023 that yielded results in 2024. Among these was a major port decongestion exercise that cleared long-stay containers and created operational space for improved cargo processing. “We took actions in 2023 that helped to produce results in 2024. One of them was the effort to decongest the ports. Old containers were removed, and we had better space for operations in 2024,” he said. The Customs boss also disclosed that the Service secured presidential approval to review certain small consignments that often entered the country informally. A special compliance window was opened for such goods, generating about N325 billion in 2024. “We are at the end of the exercise. We made about N325 billion in 2024 from that intervention,” he said. He noted that the 2024 target was almost double the 2023 figure, requiring deliberate strategising and intensified enforcement. Digitalisation at 60–70% Completion Lawmakers commended Customs’ automation drive and sought clarity on its level of digitalisation, on a scale of 1 to 10. Responding, the Comptroller-General traced the agency’s automation journey over the past two decades, noting that earlier systems were concessioned to private service providers. He said Customs has since exited those arrangements and built internal capacity, recruiting IT-trained officers to manage its systems. “In terms of automation, pre-arrival documentation is 100 per cent automated. Payment of customs duty has been automated. Transmission of manifests has been automated. Declarations have been automated. Release processes are automated,” he said. He estimated the Service’s automation level at 60-70 per cent. “I would say we’ve done something in the region of 60 to 70 per cent,” he stated, explaining that full automation depends on seamless integration with other stakeholders such as shipping companies, terminal operators, banks and other government agencies. He added that the current system is capable of supporting the rollout of a national single window platform and already interfaces directly with major actors in the cargo clearance chain. The Comptroller-General further revealed plans to integrate artificial intelligence into cargo scanning operations to improve detection capabilities, while acknowledging the dynamic nature of technology and the need for strong cybersecurity safeguards. 2025, 2026 Projections and Revenue Gaps On projections, he disclosed that Customs is targeting N6.5 trillion in revenue for 2025, while discussions are ongoing regarding a proposed N11 trillion target for 2026. However, he explained that achieving higher targets may be constrained by unresolved fiscal policy issues. He identified three major revenue lines currently suspended: excise on certain carbonated drinks and related products; excise on single-use plastics (PSP); and duties on certain telecommunications products, such as recharge cards. According to him, Customs had projected annual revenue of about N3 trillion from these three sources. “The aspect that says we should have N3 trillion from the excise addition of some products to excise has not been done. The collection of duty on PSP has not been done. Collection of duty on telecom products has not been done,” he said. He noted that these measures were suspended following public complaints and policy reviews, adding that it would be inconsistent to project revenue from items on which collection remains halted. “If the fiscal policy remains the same and collection is suspended, then we should not project revenue on those items,” he told lawmakers. Lawmakers Demand Auction Breakdown Lawmakers also pressed the Customs boss to provide granular details of auctioned goods and revenues realised from them between 2023 and 2025. “We want specific details for 2023 and all the other subsequent years — all of the auctions done, items and total generated revenue from the auction,” a member demanded. In response, the Comptroller-General clarified that auction proceeds represent only a portion of revenue captured under “fees.” “It is not only the revenue we get from auctions that makes up the fees. If we issue licences, they are subject to fees. If we raise DNAs and penalties are paid, it comes under fees,” he explained. He added that Customs could provide itemised auction records upon formal request. Zero Duty on Exports Regarding revenue from agricultural and mineral exports, the Customs chief reiterated that exports are zero-rated under federal policy. “As a way of encouraging development of exports, the federal government has made it a deliberate policy to make exports zero-rated. So no duty is collected on exports,” he said. He noted, however, that Customs collaborates with other agencies to ensure exporters meet royalty and regulatory obligations. The Comptroller-General disclosed that the Service recently signed a Memorandum of Understanding with the United Nations Office on Drugs and Crime (UNODC) to train officers to identify precious minerals and curb illicit financial flows. Contractor Registration, Rental Income Queried The committee also questioned figures for contractor registration fees and rental income from government properties. On contractor registration, the Customs boss explained that repeat contractors are not required to re-register once vetted. Regarding rental income, he clarified that rents are derived from Service-owned properties, including aviation hangars leased to private operators. Improved Inter-Agency Coordination Regarding passenger monitoring and airport operations, the Comptroller-General said Customs does not maintain passenger manifests but does keep records of infractions involving undeclared items. He acknowledged past territorial disputes among airport agencies but said coordination has improved significantly, particularly in areas such as scanner deployment and intelligence sharing. The committee directed Customs to submit comprehensive documentation, including detailed auction records and revenue breakdowns for 2023 through 2025, as part of its ongoing oversight of revenue-generating agencies. Vanguard News