ZAINAB JUNAID
As the Nigeria Customs Service (NCS) continues to play a vital role in the country’s economic development, the transition from Col. Hameed Ibrahim Ali (Rtd.) to Bashir Adewale Adeniyi MFR in June 19, 2023, marked a significant milestone. Building on the foundations laid by his predecessor, CGC Adeniyi brought a renewed sense of purpose and direction to the Service.
His policy thrust, which centered around Collaboration, Consolidation, and Innovation, aims to enhance trade facilitation, improve revenue collection, and promote economic growth in Nigeria.
This review provides an in-depth analysis of the NCS’s 2024 performance, highlighting the successes, challenges, and future directions under Adeniyi’s leadership.
The NCS known for its critical responsibility of revenue collection, trade facilitation, and border security in Nigeria, continued to build on its reform efforts in 2024.
Revenue Collection: A Success Story
The agency’s revenue collection efforts in 2024 were impressive, with the Service exceeding its target of N5.07 trillion by collecting a total of N5,079,455,088,194.38. This achievement demonstrated the effectiveness of the reforms implemented by the NCS, driven by the Collaboration, Consolidation, and Innovation policy thrust.Its revenue collection efforts were bolstered by its anti-smuggling operations.
The Service also made 2,442 seizures with a Duty Paid Value (DPV) of NGN 25,520,652,942.87, which is 203% higher than the DPV of seizures in the first half of 2023
Trade Facilitation: Progress and Challenges
The NCS’s trade facilitation efforts also showed significant progress in 2024. It introduced several trade facilitation tools, including the Time Release Study (TRS), Advance Ruling, Authorized Economic Operator (AEO), and the B’ Odogwu indigenous software system. These tools have helped to streamline customs processes, reduce clearance times, and enhance the overall ease of doing business.
The TRS, for instance, has helped the NCS to identify and address bottlenecks in the clearance process, while the Advance Ruling system has provided importers and exporters with greater certainty and predictability in their dealings with the Customs.
The AEO program has also recognized and rewarded compliant traders, while the B’ Odogwu system is a newly introduced indigenous software, and has provided a platform for electronic payment and clearance of goods.
However, despite these efforts, challenges persist, including inadequate infrastructure at some Customs ports and limited capacity for effective risk management.
Expert Insights: Room for Improvement.
According to Otunba Frank Ogunojemite, National President of the Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), the NCS must strike a balance between revenue generation and trade facilitation. “While the NCS has done well in 2024, there is still room for improvement,” Ogunojemite said in his New Year message.
“The Service must work to reduce cargo seizures and increase compliance among importers, freight forwarders, and customs agents.”Ogunojemite also expressed concern over the incessant cargo seizures by the Customs in 2024, which he believed were not helpful to the economy.
He attributed the seizures to non-compliance by importers, freight forwarders, and customs agents, and warned them to desist from wrong declarations.
Chief Osita Patrick Chukwu, National Coordinator of the Save Nigeria Importers, Freight Forwarders and Exporters Coalition (SNIFFIEC), on his part, emphasized the need for further improvements in trade facilitation saying NCS must stop blocking licenses and make use of a Unified Form C30 that can be used in all Commands,” Chukwu said. “This will help reduce delays and increase efficiency in cargo clearance.” Osita Chukwu also drew attention to the increased duty fee, which he said affected producers at the grassroots level. He urged the Comptroller General of Customs, CGC Adeniyi, to also assist in soliciting for a reduction in the duty fee to support ordinary citizens in the country.
Conclusion
The Nigeria Customs Service’s performance in 2024 was impressive, with significant achievements in revenue collection and trade facilitation. However, challenges persist, and the Service must continue to work towards addressing these issues. With the right strategies and investments, the NCS can continue to play a critical role in promoting economic growth and development in Nigeria.
