…as lawmakers seek detailed auction, export and contractor records amid push to curb borrowing
By Gloria Ikibah
The House of Representatives Committee on Finance on Tuesday put the Nigeria Customs Service under close scrutiny over its revenue performance from 2023 to 2025, asking for comprehensive details on auction proceeds, contractor registrations and export documentation. 
The session, chaired by Rep. James Faleke, centred on how to strengthen revenue generation at a time when federal resources are under strain.
“We are looking at revenue. How do we shore up more money for this country? We are tired of borrowing. We don’t want to borrow anymore,” the Chairman said.
Presenting the agency’s figures, the Comptroller-General of Customs, Bashir Adeniyi, explained that the Service earns revenue from three main sources: import duty, excise duty and fees.
“As a kind of background, the revenue base for the Nigeria Customs Service are basically three heads. We have import duty, we have excise duty, and then we have various fees that are collected from different services,” he explained.
He disclosed that in 2023, Customs generated N3.2 trillion against a target of N3.67 trillion.
“In 2023, we collected total revenue of N3.2 trillion as against a target of N3.67 trillion,” he said, putting performance at roughly 87 per cent.
According to him, the first half of 2023 was challenging due to economic headwinds, including the currency redesign, election-related slowdowns and exchange rate volatility. But revenue improved significantly in the latter half of the year.
For 2024, however, the story was different. Adeniyi said the Service surpassed its target of N5.079 trillion, generating N6.1 trillion within the fiscal year.
“For 2024, our target was N5.079 trillion. Our revenue for 2024 was N6.1 trillion. The details are as provided,” he told lawmakers, referring to documents already submitted.
He attributed the stronger performance to policy measures and operational reforms initiated in 2023, including efforts to decongest the ports.
“We took actions in 2023 which helped to produce results in 2024. One of them was the effort to decongest the ports. Old containers were removed and we had better space for operations in 2024,” he said.
The Customs chief also revealed that presidential approval was obtained to review certain small consignments that often entered informally. A compliance window created for that purpose generated about N325 billion in 2024.
“We are at the end of the exercise. We made about N325 billion in 2024 from that intervention,” he said.
He acknowledged that the 2024 target was nearly double that of 2023, requiring deliberate planning and stricter enforcement.
On digitalisation, Adeniyi told lawmakers that while significant progress had been made, the system was not yet fully automated.
“In terms of automation, pre-arrival documentation is 100 per cent automated. Payment of customs duty has been automated. Transmission of manifests has been automated. Declarations have been automated. Release processes are automated,” he said.
He estimated overall automation at between 60 and 70 per cent.
“I would say we’ve done something in the region of 60 to 70 per cent,” he stated, noting that full automation depends on integration with shipping companies, terminal operators, banks and other government agencies.
Looking ahead, he said Customs is targeting N6.5 trillion in revenue for 2025, with discussions ongoing around a proposed N11 trillion target for 2026. However, he cautioned that unresolved fiscal policy issues could affect projections.
He pointed to three suspended revenue lines: excise on certain carbonated drinks, excise on single-use plastics (PSP), and duties on some telecommunications products. Together, these were projected to yield about N3 trillion annually.
“The aspect that says we should have N3 trillion from excise addition of some products to excise has not been done. Collection of duty on PSP has not been done. Collection of duty on telecom products has not been done.
“If the fiscal policy remains the same and collection is suspended, then we should not project revenue on those items,” he told lawmakers.
Members of the committee also demanded a detailed account of auctioned goods and the revenue realised from them between 2023 and 2025.
“We want specific details for 2023 and all the other subsequent years — all of the auctions done, items and total generated revenue from the auction,” a member demanded.
In response, the Comptroller-General clarified that auction proceeds form only part of the revenue recorded under fees.
“It is not only the revenue we get from auctions that makes up the fees. If we issue licences, they come under fees. If we raise DNAs and penalties are paid, it comes under fees,” he explained.
He added that itemised auction records could be provided upon formal request, as the committee continues its oversight of revenue-generating agencies.
The Customs boss reaffirmed that agricultural and mineral exports attract no duty, in line with federal policy.
Responding to lawmakers’ questions on export earnings, he stressed that the zero-duty regime is deliberate.
“As a way of encouraging development of exports, federal government has made it a deliberate policy to make exports zero-rated. So no duty is collected on exports,” he said.
He added that while no duty is charged, Customs works closely with relevant agencies to ensure exporters comply with royalty payments and other regulatory requirements.
Adeniyi also revealed that the Service recently signed a Memorandum of Understanding with the United Nations Office on Drugs and Crime (UNODC) to strengthen officers’ capacity in identifying precious minerals and tackling illicit financial flows.
Members of the House Committee further raised concerns about figures relating to contractor registration fees and rental income from government-owned properties.
On contractor registration, the Customs chief explained that once contractors have been properly vetted and registered, they are not required to repeat the process.
Regarding rental income, he clarified that the funds come from properties owned by the Service, including aviation hangars leased to private operators.
Addressing questions about airport operations, the Comptroller-General said Customs does not keep passenger manifests but records cases involving undeclared items and related infractions.
He acknowledged that there had been territorial disagreements among agencies operating at airports in the past. However, he noted that cooperation has improved considerably, especially in scanner deployment and intelligence sharing.
At the close of the session, the committee directed Customs to submit detailed documentation covering auction records and full revenue breakdowns from 2023 to 2025, as part of its ongoing oversight of revenue-generating agencies.
