Monday, April 15, 2024

Customs posts N1.3trn revenue in Q1, blames exchange rate disruption

The Nigeria Customs Service said it generated a total revenue of N1.3 trillion in the first quarter of 2024.

Comptroller General of Customs, Adewale Adeniyi, disclosed this at a press briefing in Abuja on Wednesday.

According to him, over 572 seizures were made with a duty-paid value of N10 billion during the period.

Elaborating on the performance of the Service during the period, he said, “In the first quarter of 2024, the NCS demonstrated remarkable performance in revenue collection. Total revenue collected during this period amounted to N 1,347,675,608,972.75. The collection for the first quarter represents a substantial increase of 122.35 percent compared to the same period last year, where N 606,119,935,146.67.

“When compared to the Federal government’s annual revenue target of N 5.07 trillion for the NCS to collect in 2024, the target translates to a monthly revenue target of N423 billion.”

Adeniyi further stated that a total of N1.6 billion was generated through its electronic auction platform launched in the first quarter of the year.

The Customs boss, however, hinted that the Service encountered a major challenge in the fluctuations of the exchange rate regime which he said has disrupted its activities.

“In the last quarter, a total of 28 rates were directed by the CBN, ranging from N 951.94 per USD 1 in January 2024 to a peak of N 1,662.35 per USD 1 in February 2024. While a singular exchange rate of N951.94 per USD 1 was maintained in January, February witnessed 15 different spot rates ranging from N 951.94 per USD 1 to N 1,662.35 per USD 1.

“March saw a total of 13 different spot rates applied, ranging from N 1,303.84 to NGN 1,630.16. These fluctuations resulted in an average applied exchange rate of N 1,314.03 per USD 1 in the clearance of Customs goods during the quarter.

“The repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting and disrupting activities,” he stated.

Adeniyi, however, expressed delight in the relative stability in the past days, adding that the Service, with the support of the Minister of Finance, Wale Edun, has initiated periodic consultations with the apex bank to mitigate the potential impact of exchange rate fluctuations on import activities.

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