Customs targets N5trn revenue in 2024 — but reps push for N6trn

Adewale Adeniyi, the comptroller-general (CG) of the Nigeria Customs Service (NCS), says the agency is targeting N5.79 trillion as revenue in 2024.

Adeniyi disclosed this on Monday when he appeared before the house of representatives committee on appropriations.

The customs CG explained that the major source of revenue for customs is duty charged on all goods imported into the country.

He said another revenue source customs is trying to improve is the excise duty charged on locally produced goods.

The comptroller-general said in 2023, excise duty accounted for almost 17-18 percent of the total revenue, noting that customs is targeting N333 billion in this regard in 2024.

He said the customs revenue target for 2023 was N3.684 trillion and as of last week, the sum of N2,959 trillion was generated, representing 81 percent of the year’s projected income.

“We still have a few days in 2023. We are a little bit optimistic that we will be able to give the target a very good shot,” he said.

For 2024, Adeniyi said customs revenue projection stands at N5 trillion.

“This would represent N423 billion per month for 2024,” he said.

Adeniyi said he expects that excise duty would account for over N300 billion in the projected revenue for 2023.

‘YOU CAN IMPROVE TO N6 TRILLION’

Abubakar Bichi, chairman of the committee, told Adeniyi that customs should increase the revenue target to N6 trillion because the government needs money to finance several projects.

“Is there any possibility to increase your target in 2024? Because as I said earlier, we need more revenue and you have done very well in 2023,” he said.

“We will be glad if you can improve from that N5 trillion to N6 trillion. I am sure even the president will be very happy to see that the Nigerian customs come up with almost N6 trillion from their revenue.”

Responding, Adeniyi explained that while it is possible to increase the revenue to N6 trillion in 2024, a number of issues limiting customs’ ability to generate revenue must be addressed.

“This is possible. If we are able to review the concession that we are going to grant in 2024, we might get there,” he said.

Adeniyi said the excise duty on single-use plastic products which was suspended in July should be lifted.

“We believe that if the suspension is lifted, something in the region of N300 billion can be realised from single-use plastics alone,” he said.

“The excise duty on alcohol and tobacco. There is a projection to increase it to 30 percent. If this is done, we expect that revenue will get to where we want it.”

He added that there are other measures being put in place to increase revenue generation, including “deepening” operations and automating customs processes. 

He commended the national assembly for passing the Nigeria Customs Service Act 2023, saying the law gives “us the opportunity to implement several tools that facilitate trade and will make revenue and our processes better”.

Bichi also asked the Nigerian Upstream and Downstream Petroleum Regulatory Commission (NUPRC) to increase its revenue to N6 trillion.

While addressing the lawmakers, Gbenga Komolafe, chief executive officer (CEO) of NUPRC, told the committee that the agency is targeting N5.6 trillion in 2024.

Promising to increase the commission’s revenue target to meet the demand of the lawmakers, Komolafe said the agency will work tirelessly to achieve it.

“We will try our best to go above N6 trillion. We are working round the clock to achieve the national aspiration,” Komolafe said.