FG sets N12trn revenue target for Customs, experts raise concerns

The National Assembly has increased the Nigerian Customs Service’s (NCS) 2025 revenue target to N12 trillion, nearly double the N6.5 trillion proposed by Adewale Adeniyi, the Comptroller-General of the Service.

The decision, led by Sani Musa, chairman of the Joint Finance Committee, was based on data from the Budget Office, which indicated that the target was possible.

However, while the lawmakers are optimistic about meeting the target, experts in the maritime and trade sectors have expressed concern, warning that the decision could worsen industry problems and strain businesses already grappling with economic challenges.

Muda Yusuf, chairman of the Centre for Promotion of Private Enterprise (CPPE), cautioned that the new target would likely drive up the cost of cargo clearance, compounding inflationary pressures.

“Part of the source of high inflation is the high cost of imports,” Yusuf said. “The National Assembly should also be sensitive enough to bring relief to businesses and citizens. This action is certainly going to worsen the plight of businesses. Because as the Customs struggle to meet this target, it is the businesses and citizens that will pay for it ultimately.”

He added that businesses were already under pressure from foreign exchange volatility, high energy costs, and weak purchasing power. Yusuf said that reducing the cost of cargo clearing would be a better move to ease inflation and support economic recovery.

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Also, Eugene Nweke, head of research at the Shippers and Exporters Research and Education Centre (SEREC), described the N12 trillion target as “quite ambitious and a stretch,” given Nigeria’s current economic realities. He highlighted dwindling imports, lower ship calls at ports, and declining cargo throughput as significant hurdles to achieving the goal.

“Yearly revenue targets are not just mere figures to be given or pronounced under the euphoria of prevailing excitements,” Nweke said. “Rather, revenue targets are given or pronounced after so many variables and indices are duly put into the right perspectives. These include the impact of the previous year’s revenue on the trading environment, inflation rates, and the lives of citizens.”

Victor Murako, Chairman of the Fiscal Responsibility Commission, had revealed during a meeting that Customs owed N8.6 billion in operating surpluses to the Consolidated Revenue Fund as of 2019, raising concerns about the service’s financial accountability.

Nweke, however, warned that aggressive revenue collection could discourage trade and investment.

“The focus on revenue generation could divert attention away from other important aspects of Customs operations, such as trade facilitation and enforcement of regulations. It’s essential to consider the potential consequences of aggressively pursuing this target,” he said

Despite achieving a revenue milestone of ₦6.1 trillion in 2024, Nweke said Customs would need to scale up its efforts and address economic challenges to meet the new target. He called for the deployment of modern technologies to block leakages while urging the government to balance revenue goals with the wider economic impact on citizens and businesses.