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Customs

Editorial! The incursion of Chinese into Nigeria’s revenue vault. 

Chinese company, Huawei Technologies

The ubiquitous Chinese is gradually getting a foothold in the nation’s economy.

Apart, from giving a huge financial lifeline in form of loans to Nigeria, the Chinese are the ones building the country’s railways, among several other critical infrastructural projects they are involved in across the country.
The latest catch of the Asian country is the Nigeria Customs Service, the cash cow of the Federal Government.

On May 30th, 2022,  the controversial concession of the Nigeria Customs Service was consummated at the national headquarters of the service in Abuja.

Despite the outcry of stakeholders against the concession of the operations of the Nigeria Customs Service, the Federal Government signed a tripartite concession agreement with a Chinese company, Huawei Technologies, and their Nigerian counterparts, Trade Modernisation Project Limited with Africa Finance Corporation as the lead financiers.

The agreement was facilitated and midwifed by the Infrastructure Concession Regulatory Commission(ICRC).

The concessionaires, under the agreement, will drive the modernisation project for 20 years.

The concessionaires are expected to invest the sum of $3.2 billion dollars with an estimated income of $176 billion generated for the Federal Government in 20 years.

Last Monday’s  consummation of the concession agreement was preceded by the approval granted by the Federal Government in September 2020 to concede the operations of the customs to concessionaires

The concession agreement, which spans a period of 20 years, will involve the modernisation of the processes and procedures of the Nigeria Customs Service, including its revenue generation which the concessionaires will take over through which they are to recoup their $3.2 billion investments.

Expectedly, the decision of the Federal government, which was clinically executed in the mould of a coup d’é tat, caught many industry stakeholders pants down.

It also generated animated discussion as the approval and eventual concession was granted in defiance to the popular wish of the operators.

Since 2019, when the industry got wind of this concession deal before the 2020 approval, there has been concerted opposition mounted by the aghast operators who felt the move was an attempt to give away our common patrimony to the foreign interests.

Then,   Hon. Jerry Alagbaso, a former Customs chief and erstwhile member of the House of Representatives, rallied the National Assembly against the move.

But to the chagrin of everyone, the Federal government pulled a fast one on all the antagonists of the project.

We are less disconcerted over this concession deal which we believe was willing away the nation’s cash cow for 20 years to the foreign imperialists and their local collaborators.

We are at a loss on which powerful forces could have forced the hands of the Federal government to enter into this type of deal against the popular counsel of knowledgeable stakeholders.

Modernisation of Customs, they said.

What is there to modernise in the processes and procedures of the Nigeria Customs Service?

At the risk of being controverted, we dare say the Nigeria Customs has the most advanced form of automation process among the government agencies in the industry and one of the most automated in Africa.

The Secretary-General of the African Continental Free Trade Area (AfCFTA),  Wamkele Mene said as much when he visited Apapa Customs command last week.

Mr. Mene said Nigeria Customs has the most advanced and comprehensive automation programme among its peers in Africa.

The only challenge which the service has is human.

Some of the men and officers of the service are clearly aversed to full automation due to their selfish and pecuniary interests.

The automation process will eliminate human contacts which is the avenue for extortion and exploitation.

Since 2003, Nigeria Customs has gone through a series of automation processes that have made its processes and procedures seamless.

The Automated System for Customs Data (ASYCUDA) and its advanced form of ASYCUDA+, ASYCUDA++, the Nigeria Customs Integrated System (NCIS1 &11), and Pre-Arrival Assessment Report (PAAR) are some of the automation platforms created by the customs management over the years to make customs operations seamless.

Even, in 2013,  the Service developed a web-based application to provide information and guidelines for international trade business processors, export and transit trade which is called Nigeria trade Portal which is interactive.

To our mind, what the service needs is to upgrade these automated platforms, and integrate them with other players in the cargo documentation and clearance chains under the neglected single window project.

With adequate capital outlay, we believe Nigeria Customs can achieve full automation status without the involvement of foreign economic imperialists, aided and abetted by their avaricious local collaborators.

The anti- automation officers, who are averred to technology due to their selfish interests, could be reformed.

If they are adamant, they could be shipped out.

Cargo scanning could be emphasised while physical examination of cargoes could be sparingly used.

With these and all other automation platforms well integrated into the single-window under the supervision of a willing Customs administration, the Nigeria Customs will be a world-class agency.

We are however least surprised at the tenacity of these economic vultures in their quest to lay hands on the Nigeria Customs Service, which is gradually emerging as the cash cow of the nation.

Apart from oil, maritime is the second-highest revenue earner for the country and Nigeria Customs plays a key role in this regard.

With the yearly earnings in the excess of a conservative estimate of trillions of naira and the capacity to do more, as well as the dwindling earnings from oil due to the global crisis in the oil market, the maritime industry nay Nigeria Customs is understandably the preferred bride for these economic speculators.

Various attempts have been made in the past to dip their hands in the Customs’ till without success.

The proposed invitation of Crown agents of London to take over the revenue generation of the customs as was muted by the then Minister of Finance but now the Director-General of World Trade Organization (WTO), Dr  Ngozi Okonjo Iweala, under Olusegun Obasanjo’s administration, was promptly shot down.

In 2011, the illegal concession of Customs key functions between the ministry of finance and a company called Single Window System and Technologies was shot down.

In 2017, another move for Customs modernisation was made by the technical committee on the Comprehensive Import Supervision Scheme(CISS) which was pretentiously acting on behalf of the Federal government, with a  technical partner called Adani system Nigeria limited.

The attempt, which sought to concession the Customs then for 25 years,  was frustrated.

However, in a blatant disregard for popular opinion, the Federal government, after several failed attempts,   eventually forced down the throat of the unwilling stakeholders, the concession of the agency.

However, the deeds have been done.

Any further lamentation by the stakeholders on the issue is crying over spilled milk.

Now that the government has had its way, we can only hope that its aspirations for the concession will be realised.

The Minister of Finance, Budget, and Planning, Zainab Ahmed, has said the government stands to realise $176 billion from the project without spending a Kobo.

The question is how much will the concessionaires realise within the 20- year period of the deal beyond the $3.2billion investments they are expected to sink into the project?

What would be the fate of the customs officers whose jobs will be affected by the take-over of the revenue functions of the agency?
Even though the Comptroller General of the service, Col. Hameed Ali, has allayed the fear of job loss, the redundancy of some categories of officers could not be totally ruled out.

It is instructive to note that one of the two core functions of the customs, which is revenue generation, has now been concessioned under the guise of this new modernisation project, leaving them with the anti-smuggling function.

We hope rather than render some crop of officers reductant which may lead to possible right-sizing of staff, they could be redeployed to beef up the anti-smuggling function of the service.

We are worried about the involvement of the Chinese in the project as represented by Huawei which serves as a technical partner.

The ubiquitous Chinese have gradually become a leech on Nigeria, sucking on the economy of the nation.

We can only hope that the modernisation project will leave the Nigeria Customs service better than it met it.

We equally hope the project will not be sabotaged by disgruntled insiders whose means of livelihood is being threatened.

The misadventure of the  Professional Import Duty Administrators (PIDA) between 1996 and 2000 in the Nigeria Customs Service is still poignant in the memory of those who were in the know.

At that period, a firm of an accounting/consultant was engaged as professional Import Duty Administrators to complement the Nigeria Customs Service in the task of revenue generation.

They left the service worst off than they met it.

We appeal to the Federal government to ensure that this project transforms the service into a technologically-driven agency whose operations are seamless and paperless.

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Customs

Customs shuns N12 trillion inflated revenue target imposed by National Assembly 

— focuses on realising N6.5 trillion 2025 target 
Funso OLOJO 
The Nigeria Customs Service may have tactically shrugged off the imposition of the N12 trillion revenue target by the National Assembly.
It could be recalled that government gave the NCS ₦6.5 trillion revenue target for 2025.
This followed the impressive revenue performance of the service in 2024 when it surpassed that year’s target of N5.07 trillion by 20.2 percent.
However , in January, 2025, the National Assembly joint committee on Finance led by its chairmen, Senator Sani Musa and Hon. James Faleke, believed that the projection of N6.5 trillion revenue target given to the customs was conservative and encouraged the NCS to aim higher.
Consequently, the joint committee slammed a whooping sum of N12 trillion as revenue target, doubling the initial N6.5 trillion projected revenue.
This humongous target sparked off an outrage among perplexed stakeholders who felt the target imposed by the law makers was outrageous and unrealistic which they feared may stretch the capacity of the customs to a breaking point and put unnecessary pressure on the men and officers of the agency.
Indication that the Customs authority may not be well disposed to the imposed target of N12 trillion by the National Assembly emerged recently when the Comptroller -General of Customs, Adewale Adeniyi, was giving account of the activities of the service in the first quarter of 2025.
While giving the analysis of the revenue performance of the service during the period under review, Adeniyi benchmarked the revenue generated by the service during the first quarter of 2025 by N6.5 trillion revenue target given by the Federal Ministry of Finance, thus jettisoning the N12 trillion imposed by the National Assembly.
 Against our annual target of ₦6,580,000,000,000.00, the first quarter’s proportional benchmark stood at ₦1,645,000,000,000.00.
“I’m proud to announce we’ve exceeded this target by ₦106.5 billion, achieving 106.47% of our quarterly projection.
” This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected
₦1,347,705,251,658.31″ Adewale stated, while giving the analysis of the performance of the service in the first three months of the year.
Analysts believed that from the analysis of the revenue performance of the NCS in the first quarter of the year which was predicated on the N6.5  trillion revenue target, it was obvious that the service was not paying much attention to the imposed N12 trillion,  but rather focusing on how to meet the more realistic target of N 6 .5 trillion.
” You can see that the CGC did not make mention of the N12 trillion imposed by the National Assembly which presupposes that the unrealistic amount is not in the reckoning of the Customs” a customs broker who plies his trade at Apapa port, said, pleading for anonymity.
” Where  on earth do they want the Customs to realize such an humongous amount of money in a depressed economy, in a country where importation has plummeted due to the unfriendly policies of government?
“It is unfortunate that these people (the law makers) have lost touch with the current economic realities in the country.
” All what they are after is to witch hunt government agencies to go and hunt for money for them to share.
” If not, how could they sit down in the comfort of their air conditioned offices and imposed such amount of revenue for customs to realize.
” Of course, the pressure would be on the men and officers of the service who will in turn go after the hapless importers and their agents in the most brutal way to raise the imposed target.
” It is unfortunate that the lawmakers, who are expected to make laws that will encourage export drive of the Federal government, are those asking the customs to focus more on the import goods where such money could be realized” another freight forwarder, who did not want his name in print but based at Tin Can Island port, declared.
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Customs

Exports slump in first quarter of 2025 as Customs processes 8,153 shipments  in three months.

Funso OLOJO 
The export drive of the Federal government suffered a slight set back in the first quarter of 2025 when Nigeria recorded an export shipment of 8,153 (SGDs) during the period, down from 8,710 shipments(SGDs) recorded in the last quarter of 2024, representing 6.4 per cent decline and further slump of 24.4 per cent over the first quarter of 2024 which stood at 10,786 shipments(SGDs).
The statistics were part of the first quarter activities of the Nigeria customs service as presented by the Comptroller- General of Customs on Tuesday April 22nd, 2025.
” Despite fewer transactions, export mass reached 5.03 billion kilograms – a 10% reduction from Q4 2024’s 5.58 billion kg but a remarkable 348% increase from Q1 2024’s 1.12 billion kg.
“The CIF value stood at ₦21.51 trillion, showing a 19% increase from Q4 2024’s ₦18.07 trillion while remaining stable compared to Q1 2024’s ₦21.58 trillion.
“This data clearly suggestive of Nigeria’s accelerating shift toward bulk commodity exports, with significantly larger shipments being processed through fewer transactions, while maintaining consistent total export value – reflecting both changing trade patterns and improved processing efficiency in our export systems.
” The total trade value handled by the Service in Q1 2025 amounted to
₦36,317,925,576,290.00, demonstrating Nigeria’s substantial participation in international trade despite global economic challenges” CGC Adeniyi declared.
Conversely, the service processed a total of 327,928 Single Goods Declarations (SGDs) for imports, handling goods with a total mass of 4,910,640,283.33 kilograms and a Cost, Insurance, and Freight (CIF) value of ₦14,807,960,201,235.00.
“This represents a 5.28% increase in the number of import transactions compared to the 311,492 SGDs processed in Q1 2024, reflecting growing confidence in our trade facilitation measures.
“The significant 40.14% increase in the mass of imports processed (from 3,504,173,117.33 kg in Q1 2024) demonstrates robust growth in import volumes, while the 26.72% increase in CIF value (from ₦11,685,677,810,129.00 in Q1 2024) indicates a shift towards higher-value goods” the CGC stated.
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Customs

Customs realises N1.75 trillion revenue, records 298 seizures worth N7. 7 trillion in three months 

Gloria Odion 
The Nigeria Customs service has commenced an impressive run towards meeting the 2025 revenue target of N6.5 trillion when it realized a princely sum of N1.75 trillion in the first quarter of the year.
The quarterly revenue haul,which was N106.5 billion more that the quarterly target of N1.6 billion, signals the intention of the service to exceed this year’s revenue target.
Giving an account of the activities of the service on Tuesday, April 22nd, 2025, the Comptroller General of Customs, Adewale Adeniyi, said the first quarter revenue achieved 106.47 percent of the service projection.
“This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected
₦1,347,705,251,658.31.
“Our month-by-month analysis reveals even more encouraging details of this growth trajectory. January’s collection of ₦647,880,245,243.67 not only surpassed its monthly target of ₦548.33 billion by 18.12%, but also showed a remarkable 65.77% year-on-year growth.
” February’s ₦540,105,439,535.18 exceeded its target by 1.3% while achieving 19.97% growth over 2024 figures.
“March maintained this positive trend with ₦563,516,567,519.20, delivering 2.7% above target and an 11.22% improvement over March 2024.
“These results substantiate our effective measures to curb revenue losses while streamlining compliant trade. The 29.96% annual increase and steady monthly collections confirm our strategy is working.
“We’ll maintain this momentum through rigorous enforcement and strengthened partnerships” CGC  Adeniyi pledged.
In the same vein, the service recorded an an impressive seizures of contraband and smuggled goods during the period under review.
It intercepted 298 smuggled goods with the Duty Paid Value(DPV) of N7.7 trillion.
“This represents a significant 78.41% increase compared to the ₦4,315,162,568.35 recorded in Q4 2024, demonstrating heightened operational effectiveness.
“However, when compared to Q1 2024’s
₦9,587,256,998.05,  the  Service  observed  a  19.70%  reduction  in  DPV,
 attributable to improved compliance through sustained stakeholder engagement and the deterrent effect of our enforcement activities.
“Rice remained the most prevalent seized commodity, with 159 cases involving 135,474 bags valued at ₦939,309,698.00.
“Petroleum products followed with 61 seizures totaling 65,819 liters (₦43,336,160.81 DPV).
” Of particular note were 22 narcotics interceptions valued at ₦730,748,173.00, reflecting our intensified focus on combating drug trafficking.
” The Service also recorded three high-value wildlife product seizures with a remarkable ₦5,653,522,600.00 DPV, underscoring both the lucrative nature of this illegal trade and our commitment to environmental protection under international conventions.
“Other notable seizures included textile fabrics (13 cases, ₦134,219,330.00 DPV), retreaded tires (5 cases, ₦104,599,000.00 DPV), and pharmaceuticals (1 case, ₦17,188,000.00 DPV).
“These comprehensive results demonstrate the Service’s vigilance across all categories of prohibited and restricted goods.
Under the same period, the customs processed a total of 327,928 Single Goods Declarations(SGDs) for import while it processed 8,153 export shipments
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