Group Condemns NASS N12trn Revenue Target For Customs

A group in the Marítime industry, the Sea Empowerment and Research Center (SEREC), have condemned the N12trillion revenue target given to the Nigeria Customs Service (NCS) by the the National Assembly.

Lagosbusinessnews.ng reports that the National Assembly through its Joint Committee on Finance significantly increased the 2025 revenue projections for the Nigeria Customs Service (NCS).

“Based on the aggregate opinions of this committee, the Comptroller-General of Customs should aim at generating N12 trillion revenue for Nigeria in 2025,” he said.

However, in a statement made available to BUSINESSINSIDERNG, the Head of Research, SEREC, Eugene Nweke, said the N12trillion revenue target for the Nigeria Customs Service in 2025 is quite ambitious and a stretch, considering the current state of the economy.

According to Nweke, the revenue is ambitious in the face of heightened trade policies uncertainties, dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes.

He also disclosed that unstable foreign exchange regime and harsh trading environment are additional hurdles that could hinder the service progress to achieve the N12trillion revenue target.

“The SEREC wish to strongly opin that, yearly revenue targets are not just mere figures to be given or pronounced under the euphoria of a prevailing excitements, rather, revenue targets are given or pronounced after so many variables and indices duly putting in the right perspectives.

“Such variables or indices may include, weighing the impact of the previous year  revenue generated on the trading environment, the economy in real time effects of inflation rate analysis, a performance graphs for local production inhibited by imported products, the direct impact to the lives of the citizens in general, with regards to consumers price index and poverty level indicators, etc.

“Against this background, the SEREC make bold to state that, the Nigeria Customs Service’s revenue target of N12trillion for 2025 is quite ambitious and a stretch, considering the current state of the economy. Especially, so in the face of heightened trade policies uncertainties, leading to dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes, etc. Indeed, it is challenging to really project how the NCS intends to achieve this target.

 “Take note that, the ever-increasing foreign exchange regime and harsh trading environment are additional hurdles that could hinder the NCS progress.

“It’s worth noting that, ahead of schedule, the NCS did achieve a significant milestone in 2024, generating a revenue of ₦5.07trillion  and at dying minute reported as closing it up to ₦6.105trillion,” Nweke stated

The former president of the National Association of Government Approved Freight forwarders (NAGAFF), said for the service to meet the new target, they would need to significantly scale up their efforts and find ways to mitigate the challenges posed by the current economic environment.

 “However, this milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders, as well as improved processes and modernized systems.

“To reach the new target, they would need to significantly scale up their efforts and find ways to mitigate the challenges posed by the current economic environment, in addition to blocking leakages via the deployment of modern technologies.

“Obviously, the aggressive pursuit of this revenue target in the year 2025 could have a negative impact on the trade environment and the economy as a whole. It may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially,where compliant level is at single digit increase.

“Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of customs regulations.

“Overall, while the NCS’s revenue target is ambitious, it’s essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run.

“In concluding, the SEREC wish to offer a word of advice to the government , by reminding and calling its understanding to the effect that, the NCS actions and inactions touches every sphere of our socio economic life of the citizens, who are already down, poverty wise, with inflation rate hitting at 34.8% in December, 2024.

“Finally, the SEREC therefore call on the Hon Coordinating Minister Finance and Budgeting, who doubles as the Chairman Board of Customs to be deliberate and real to his ministerial obligation to the nation, in the context of the matter under consideration.”