Customs Highlights Challenges Faced In First Half Of 2024

By Roland Ekama 

Despite the achievements recorded in the last one year, the Nigeria Customs Service (NCS) has highlighted several challenges faced
in the first half of 2024.

According to the service in a statement on Monday as made available to newsmen by the command’s spokesman, Abdullahi Maiwada, significant fluctuations in the exchange rate, a lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime are major pitfalls for the first six months of the year 2024.

Despite these challenges , Maiwada explained that they impacted the consistency of revenue collection and overall operational efficiency.

To address these challenges and enhance revenue collection, the spokesman noted that the NCS implemented several strategies, including real-time system auditing, post-clearance audits, verification of documents for the Pre-Arrival Assessment Report (PAAR), ensuring compliance with import guidelines, and the implementation of a pilot test for the Authorized Economic Operators (AEO) scheme.

He noted that the report underscores the Service’s commitment to supporting the policy direction of President Bola Ahmed Tinubu’s administration adding that It aligns with our pledge to deliver a transparent and accessible system under the leadership of Comptroller-General (CGC) Bashir Adewale Adeniyi and his management team.

While announcing its mid-year performance report, highlighting its core mandates of revenue collection, trade facilitation, and societal protection, Maiwada disclosed that the NCS achieved remarkable success in the first half of 2024.

“With a half-year revenue target of N2.54 trillion, the Service has collected N2.74 trillion, surpassing the target by 8% and marking a 127% increase over the previous year’s revenue.

” N1.395 trillion was collected for the second quarter, exceeding the quarterly target by 10% and representing a 131% increase over Q2 2023.

“Key initiatives contributing to this success include the e-auction platform, which generated over N1.34 billion, and the 90-day duty payment window for uncustomed vehicles, adding N4.37 billion to the revenue. These measures have significantly enhanced transparency, compliance, and efficiency in customs processes, underscoring the NCS’s commitment to excellence.

On smuggling activities, the spokesman stated that the Service intensified its anti-smuggling operations in the first half of 2024, resulting in notable achievements.

He revealed that from January to June 2024, the NCS 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. In the second quarter of 2024, the NCS made 1,334 seizures with a DPV of NGN 17,564,384,378, representing a 121% increase over the first quarter of 2024.

Maiwada added that top items seized include wildlife items, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects in custody.

He stressed that “Trade facilitation remains a core priority for the NCS. In the first half of 2024, the Service processed 620,467 Single Goods Declarations (SGDs), reflecting a reduction of approximately 39% compared to the same period in 2023.

“Despite this decline, the NCS has implemented several key initiatives to simplify and expedite customs processes. These include reinforcement of NCS automation procedures, capacity-building programs for officers, and public-private partnerships to enhance customs clearance efficiency.

“These efforts are crucial for enhancing Nigeria’s trade competitiveness and supporting economic growth.”

 

Additionally, the NCS spokesman said the service recently introduced the Advance Ruling System (ARS), a legally binding decision on classification, valuation, and rules of origin before the importation or exportation of goods.

“Other pragmatic measures implemented to increase revenue, despite a drop in cargo throughput, included establishing a robust framework for dispute resolution, launching Operation Whirlwind, reshuffling strategic-level officers and robust stakeholders’ engagement.

“The CGC commends all officers and men of the NCS for their diligence and commitment. He also acknowledges the stakeholders who have played significant roles in achieving this performance. He further reaffirmed the Nigeria Customs Service’s dedication to supporting the realisation of government policies for a better Nigeria.”