Customs’ revenue to fall below N944bn annual target as import drops

There are strong indications that the Nigeria Customs Service (NCS) will not be able to meet its 2015 revenue target estimated at N944 billion, analysts have projected. This is owing to the current slowdown in the nation’s business activities that has resulted to a sharp drop in the volume of cargo imported through seaports and land border stations.

The analysts say Customs area commands have been recording dwindling revenues over the past few months, as the slowdown in the economy continues, without signs of recovering before the year runs out.

Statistics shows that Apapa Area 1 Command, the highest revenue generating command of the Service, generated N222.4 billion between January and August 2015. A breakdown of this shows that the command generated N20.7 billion in January; N21.6 billion in February; N32.4 billion in March; N20.8 billion in April; N23.9 billion in May N24.6 billion in June; N24.5 billion in July; N30.1 billion in August and N23.8 billion in September.

Also, Tin-Can Island Port, the second highest revenue generating command of the Service, generated a total of N190 billion between January and September this year. A breakdown of this shows that the command collected N21.0 billion in January; N19.2 billion in February; N21.5 billion in March; N20.3 billion in April; N18.2 billion in May; N23.4 billion in June;  N22.1 billion in July N22.8 billion in August and N21.5 billion in September.

Charles Edike, the outgoing Area Controller of Apapa command, told stakeholders recently in Lagos that the command is witnessing very challenging times, as the volume of import is declining sharply, over the Central Bank’s restriction on foreign exchange spending.

“Since the CBN policy was rolled out, we have been clearing the remnant that came into the port but the remnant is now dwindling. Importation is very low and we only collect duty on goods imported but when there is no importation, we cannot collect revenue,” he said.

This, according to him, crashed import volumes, as most importers find it difficult to source forex. He added that the situation would not get better anytime soon.

BusinessDay finds that the economic situation is taking a toll on the operating capacity of seaport terminals in Nigeria, as many terminals now operate at 20 to 40 percent capacity since the second quarter of this year, due to the reduction in the number of ships sailing in.

Before now, an average of 100 vessels usually berth with different cargo in the Lagos pilotage district every month, but this number has reduced since the second half of the year, to an average of 40 vessels per month and most times less. Here, terminals that have the capacity to handle three to four vessels simultaneously now handle one or two vessels in one week.

“Business is very low this year and our terminal is already 20 percent down from capacity. There are a number of shipping lines that have withdrawn their alliance and left Nigeria for the time being”, said John Jenkins, managing director of Ports and Cargo Handling Services Limited (PCHSL) in an interview with our correspondent.

Tony Anakebe, a maritime analyst, told our correspondent that it would be very difficult for Customs to meet its revenue target due to slow movement in the port. He added that area commands are already recording falling revenues.

“The economic situation in the country has drastically reduced the quantity of containers and goods coming into the port, and this has direct impact on revenue generated by Customs into government coffers. Business has been difficult in the year, over elections, mixed feelings among investors as regards the economic and political stability of the country,” Anakebe explained.

AMAKA ANAGOR-EWUZIE