The Organised Private Sector (OPS) has warned the National Assembly that the ambitious N12trillion revenue target set for the Nigeria Customs Service (NCS) could have a negative impact on trade environment and the economy as a whole and may worsen inflation which could further discourage trade and investment, especially where compliant level is at single digit increase.
In a statement made available to the Nigerian Tribune on Wednesday, the Sea Empowerment and Research Center (SEREC) stated that yearly revenue targets are not just mere figures to be given or pronounced under the euphoria of prevailing excitements, but that revenue targets should be given or pronounced after so many variables and indices have been duly put in the right perspectives.
According to the Head of Research at SEREC, Fwdr. Eugene Nweke, “Such variables or indices may include, weighing the impact of the previous year generated revenue on the trading environment; the economy in real-time effects of inflation rate analysis; performance graphs for local production inhibited by imported products; the direct impact to the lives of the citizens in general with regards to consumers price index and poverty level indicators, etc.
“Against this background, the SEREC is bold to state that the Nigeria Customs Service revenue target of ₦12trillion for 2025 is quite ambitious and a stretch, considering the current state of the economy.
“Especially, so in the face of heightened trade policies uncertainties, leading to dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes, etc. Indeed, it is challenging to really project how the NCS intends to achieve this target.
“It’s worth noting that, ahead of schedule, the NCS did achieve a significant milestone in 2024, generating revenue of ₦5.07trillion and at the last minute, rounded it up to ₦6.105trillion.
“This milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders, as well as improved processes and modernized systems.
“However, the aggressive pursuit of this N12trillion revenue target in the year 2025 could have a negative impact on the trade environment and the economy as a whole. It may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially, where compliance level is at a single-digit increase.
“Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of Customs regulations.
“Overall, while the NCS’s revenue target is ambitious, it’s essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run.