Customs’ revenue surges to N4.3trn on e-payment

The Nigerian Customs Service (NCS) has reported a 33 percent increase in its revenue from the start of 2024 to September 2024 on the back of the digital adoption of e-payment in the sector.

According to NCS’ statement, the revenue surged to N4.28 trillion in nine months of 2024 compared to N3.21 trillion at the end of 2023, representing an outstanding N981 billion to meet the revenue target of N5.1 trillion in the fourth quarter of 2024.

“The NCS has been able to generate revenue from January to September 2024 to the tune of N4.28 trillion while in the corresponding year, 2023, the service was able to generate a revenue sum of N3.21 trillion as also compared to the year, 2022 when the service was able to generate the sum of N2.60 trillion,” the statement said.

The service noted that the year-on-year improvements in import duty collection were due to the adoption of digital systems implemented by the Central Bank of Nigeria (CBN) and commercial banks in Nigeria, allowing seamless payment, transparency, and accountability.

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“The NCS Modernisation Project provides a transparent and traceable record of all transactions. This enhances accountability, such that once duty payments are logged, they cannot be altered or deleted. Combined with real-time audit capabilities, this makes it difficult to manipulate Import data, significantly enhancing transparency,” it said.

It added that systems like the Advance Ruling System helped mitigate instances of duty evasion and underreporting, which had been major issues in the past.

Abayomi Duyile, chairman of Ports & Terminal Multipurpose Limited of the National Council of Managing Directors of Licensed Customs Agents, said the exchange rate fluctuations also contributed to the increase in revenue.

“Exchange rate is the major cause of the surge. The current volume is low compared to that of last year and it helps them make more money. As of last year, I think the exchange rate was less than N1,000/$. But as we speak today, it is over N1,600/$ and that is why they are making more money even if the volume of importation has reduced; It is an exchange rate factor,” he said.