Election Anxiety, Cash Crunch, Naira Redesign Hit Us Hard In 2023 – Customs

• Comptroller General Adeniyi attributes Nigeria Customs Service’s revenue reduction to 2023 election uncertainties, cash crunch, and currency redesign
• Despite a projection of N3.669 trillion, NCS collected only N3.202 trillion in 2023, facing challenges like Import Duty Exemption

The Nigeria Customs Service (NCS) is grappling with a substantial reduction in revenue, attributed to the confluence of challenges in 2023, including the election atmosphere, a cash crunch, and the redesign of the Naira. I highlighted these factors during an interactive session with the House of Representatives Committee on Customs and Excise, Bashir Adewale Adeniyi, the Comptroller General (CG) of the NCS.

Speaking on the 2023 budget performance and the proposed 2024 budget, Adeniyi pointed out that uncertainties and anxiety surrounding the 2023 elections, coupled with the suspension of excise on single-use plastics, carbonated drinks, and telecommunications VAT, significantly impacted Customs revenue.

Despite a revenue projection of N3.669 trillion, the NCS collected only N3.202 trillion from January to December 2023, resulting in a notable N4062.9 billion negative variance. Adeniyi acknowledged the NCS’s efforts to meet targets but highlighted hindrances such as Import Duty Exemption.

Chairman of the Committee, Rep. Leke Abejide, emphasized E-customs’ importance in trade facilitation and its technological advancements. He stressed the need for budget frameworks aligned with the objectives of reformed customs adapted to the current times.

Rep. Abejide pledged the committee’s commitment to intensifying oversight functions, ensuring adherence to set objectives and laws to pursue a more efficient and technologically advanced customs system.