Adeniyi: Customs Generates N1.75tn in First Quarter, Says Duty Exemptions on Food Imports Have Led to Price Reduction
Adeniyi: Customs Generates N1.75tn in First Quarter, Says Duty Exemptions on Food Imports Have Led to Price Reduction
•Declares unstable exchange rate creating uncertainty for traders, affecting customs valuation, others
•Says US tariff created uncertainty for Service
James Emejo in Abuja
The Comptroller General, Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi, yesterday disclosed that the service collected N1.75 trillion in revenue in the first quarter of the year (Q1 2025).
Compared to its N6.58 trillion target for 2025, the proportional benchmark in Q1 stood at N1.65 trillion.
Adeniyi said the service exceeded its quarterly target by N106.5 billion, achieving 106.47 per cent projection.
He added that the outstanding performance represented a substantial 29.96 per cent increase compared to N1.35 trillion Q1 2024.
Month on month, January’s collection of N647.88 billion not only surpassed its monthly target of N548.33 billion by 18.12 per cent, but also showed a remarkable 65.77 per cent year-on-year growth.
Also, February’s N540.11 billion exceeded its target by 1.3 per cent while achieving 19.97 per cent growth over 2024 figures.
In March, the service maintained the positive trend with N563.52 billion, delivering 2.7 per cent above target and 11.22 per cent improvement over the corresponding period of 2024.
The CGC said, “The numbers we’re releasing today show concrete results from the reforms initiated under President Bola Ahmed Tinubu’s administration and the supervision of the Minister of Finance and coordinating minister of the Economy, Mr. Olawale Edun’s leadership.
“These results substantiate our effective measures to curb revenue losses while streamlining compliant trade. The 29.96 per cent annual increase and steady monthly collections confirm our strategy is working.
“We’ll maintain this momentum through rigorous enforcement and strengthened partnerships.”
Nonetheless, Adeniyi lamented that despite the current achievements, the service encountered several challenges during the quarter which impacted its operations and performance.
He said exchange rate volatility continued to affect trade patterns and customs valuation, adding that the service recorded 62 changes in the exchange rate ranging from a minimum of N1,477.72 to a maximum of N1,569.53 per US dollar, with an average rate of N1,521.59 during the review period.
He said, “This volatility, though slightly moderated compared to the previous quarter (Q4 2024) which saw rates as high as N1,688.28, continues to create uncertainty for traders and affects the predictability of import costs.
“We have been working closely with the Central Bank of Nigeria and the Federal Ministry of Finance to implement measures aimed at stabilising the exchange rate for import declarations.”
He also said the service faced uncertainty regarding the 14 per cent Reciprocal tariff imposed on Nigerian exports by the United States of America.
Adeniyi said the development had potential implications for the country’s export trade and required strategic diplomatic and policy responses.
To this end, he stated that stakeholders will meet this week devise an appropriate and coordinated response to the tariff, adding that diplomacy remained the best option in addressing the issues.
He also said the non-compliance, particularly in the form of smuggling, remained a persistent challenge despite enhanced enforcement efforts by customs.
He said, “We continue to adapt our strategies to combat increasingly sophisticated smuggling networks, leveraging technology and intelligence-led operations to tackle this threat to our economy and security.”
He said implementation and subsequent suspension of the Financial Customs Service Operation (FCSO), also known as the four per cent FOB further presented significant challenge to revenue collection.
The CGC said the development created temporary operational adjustments for both the service and its stakeholders.
Adeniyi further disclosed that the NCS maintained robust anti-smuggling operations during Q1, recording 298 seizures with a total Duty Paid Value (DPV) of N7.70 billion. representing a significant 78.41 per cent increase compared to N4.32 billion recorded in Q4 2024, demonstrating heightened operational effectiveness.
However, when compared to N9.59 billion recorded Q1 2024s, the service observed a 19.70 per cent reduction in DPV, Adeniyi stated.
He attributed the development to improved compliance through sustained stakeholder engagement and the deterrent effect of our enforcement activities.
He said rice remained the most prevalent seized commodity, with 159 cases involving 135,474 bags valued at N939.31 million.
Petroleum products followed with 61 seizures totaling 65,819 liters valued at N43.34 million in DPV.
He said of particular note were 22 narcotics interceptions valued at N730.75 million, reflecting the service’s intensified focus on combating drug trafficking.
The service also recorded three high-value wildlife product seizures with a remarkable N5.65 million DPV, underscoring both the lucrative nature of the illegal trade and customs commitment to environmental protection under international conventions.
According to him, other notable seizures included textile fabrics (13 cases valued at N134.22 million, retreaded tires (five cases valued at N104.60 million, and pharmaceuticals (one case, worth N17.19 million.
He said,” These comprehensive results demonstrate the service’s vigilance across all categories of prohibited and restricted goods.”
He also disclosed that NCS’s duty exemptions on food imports have contributed to recent food price reductions, with effects seen both immediately and over time.
He said in Q1, waivers on maize stood at (N45.3 billion FOB value), rice (N751.6 million), and sorghum (N2.3 billion) also contributed to lowering prices by 12-18 per cent this year.
He said, “At the same time, the larger exemptions from 2024 on rice (N45.9 billion FOB) and wheat (N2.8 billion) are now showing their full effect after taking time to work through the supply chain.
“This combination of current and past exemptions helps explain the steady improvement in food affordability. The 2024 measures initially faced delays in reaching markets but eventually increased supplies, while the 2025 waivers provided additional support.
“Together, these policies have helped stabilise prices by improving availability at different times, showing how customs adjustments can influence food costs both in the short term and over longer periods.
“The NBS price data reflects this pattern, where the benefits of duty relief emerge gradually but add up to make food more affordable.”
He said the NCS’ strategic focus in 2025 will center on two key areas including continuous modernisation, particularly further expansion of the B’Odogwu platform, implementation of advanced risk management systems, and integration of emerging technologies into its operations.
He said, “Let me emphasise that every statistic we share today represents the hard work of our customs officers – stopping illegal goods at our borders, enabling lawful trade, and securing vital government revenue.
“While we’ve achieved significant successes this quarter, we’ve also encountered challenges that have provided valuable lessons for our ongoing operations.
“I want to be clear about our approach: we believe the public has a right to know how their customs service is performing. That’s why we’re here today – to give you the facts, answer your questions, and maintain the trust Nigerians place in our institution.”
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