The Nigeria Customs Service generates N203 billion in H1 2019

, Magazine

The Nigeria Customs Service (NCS), Apapa Command, generated N203.2 billion in the first half of 2019. This was disclosed on Tuesday by the Area Controller of the Command, Comptroller Muhammad Abba-Kura, while inspecting some intercepted goods in one of the terminals in the commercial city.

According to a statement made available to pressmen, the NCS Controller further disclosed that the sum of $46.6 million was recorded as a Free on Board (FOB) value for exported goods. As earlier reported by Nairametrics, Nigeria Customs generated N170.4 billion as at the end of May 2019.

More details: While speaking further, Kura revealed that in the last one year (June 2018 – June 2019), the total revenue generated by the Nigeria Customs Service increased by N26.5 billion. Basically, the sum of N176.7 billion was realised in 2018, even as the figure is estimated at N203.2 billion as of June 2019.

According to him, with the N203.2 revenue generated so far in the first half of 2019, about 54.5% of the annual revenue target has been achieved.

Why revenue increased: Kura attributed the rise in revenue generated to adherence to strict policy and collaboration with other sister agencies. Kura said,

“Periodic stakeholders’ meetings, open door policy, prompt resolution of disputes by the Dispute Resolution Committee as well as maintaining the right synergy and collaboration with other sister agencies also contributed to the command increased revenue.

We will continue to build on existing strategies put in place by my predecessor, Comptroller Bashir Abubakar.”

He further noted that all forms of leakages are being wholistically addressed to improve revenue.

Upshots: Following a recent report that the Central Bank of Nigeria announced a new exchange rate for Customs duty from N306 per dollar to N326/$ at the Apapa port, the Command may generate more revenue or decline, depending on the case.

Note that the sudden change has attracted wide condemnation from operators and stakeholders as they try to adjust with the differences and attendant extra costs/losses.

The new customs duty rates may have some negative impact on businesses that conducted their transactions at the exchange rate of N306/$ before the sudden increase. It means they will have to pay more now or seek alternative sources.