Customs generates N1.34tr in Q1 2024, loses N318b to waivers, concessions

  • Why Customs failed to achieve 2023 revenue target — Adeniyi

The Comptroller General of Customs, (CGC|) Adewale Adeniyi, on Thursday said the Nigeria Customs Service generated N1.34 trillion in the first quarter of 2024.

Adeniyi said N318 billion was lost to exemptions, waivers and concessions granted to companies in the same period, while 478 seizures amounting to N1.9 trillion were made by its operatives in the period under review.

Adeniyi disclosed this while appearing before the House of Representatives Committee on Finance in the ongoing probe to monitor revenue by Ministries, Departments and Agencies (MDAs) of the Federal Government.

The CGC|)said with a projected revenue target of N1.269 trillion for the first quarter of 2024, the agency surpassed its revenue target by N77 billion, noting that  the agency has a revenue target of N5.079 trillion for the year 2024.

He lamented that the suspension of excise policy on carbonated drinks, single used plastics, telecommunication and others in the 2024 fiscal policy measures, adversely affected revenue generation by the agency.

Adeniyi explained that  “The monthly expected average revenue target stood at N423,255,822,173.79; the collection for January recorded a shortfall of 7.66 per cent on the target while February denoted an excess of 6.37 per cent and, the month of March equally represented a positive variance of 19.71 per cent of its respective monthly estimates. On aggregate, within the first quarter of 2024, with the total projected revenue of N1,269,767,466,521.38, the sum of N1,347,705,251,658.31 was collected, which recorded a significant improvement of 6.14 per cent higher than the periodic target.”

According to him, the service performed remarkably well in terms of revenue generation within the first quarter of 2024 with 6.14 percent above the periodic target, adding that the Customs’ contribution to the annual revenue target as at March 31, 2024, stood at 26.53 per cent, while the trade balance was positive at an advantage of 84.58 per cent.

He also revealed that the volume of cargo throughput has reduced compared to previous year and blamed the volatility of the exchange rate for the development.

“The volume of cargo that has been coming to our port in the first quarter has dropped by about 5.14 per cent of what we saw in 2023. The cargo throughput has reduced because of the volatility of the exchange rate and value of dollar. The reduction in volume of cargo has impacted our revenues,” he added.

The Deputy Chairman of the House of Representatives Committee on Finance Saidu Abdullahi, said customs would have generated more income for Nigeria’s consolidated revenue fund in the first quarter without the waivers and concessions arrangements.

Abdullahi,  however commended the agency for surpassing its quarterly revenue target and urged the service to do more.

“I must encourage you to do more. I can see a man that knows his worth. But you can do well. You said your target is N5 trillion but you can make it N6 trillion and the whole country will celebrate you,” Abdullahi emphasized.

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