Economic recession dips Nigeria Customs’ revenue to N385.7bn due to fall in the value of Naira.

The Nigeria Customs Service (NCS) is a prime source of revenue generation, and the dip in revenue it garnered in the first six months of 2016, when compared to the same period in 2015, is hard enough evidence of the economic recession assailing Nigeria.

The NCS generated an estimated N385.7 billion as revenue from January to June, 2016, as against the N438.2 billion generated in the same period in 2015, according to the NCS Public Relations Officer, Deputy Comptroller Wale Adeniyi.

Adeniyi explained in Abuja, Nigeria’s Federal Capital Territory (FCT) that part of the N385.7 billion collected as revenue from January to June, 2016, by the NCS, N197.7 billion was from import duties in cash, while N203 million came from import duty in non-cash receipts as Negotiable Duty Credit Certificate (NDCC).

He gave further breakdown of the figures thus: N21.876 billion from excise duty; N910. 995 million, fees; N41. 418 billion, from Federation Account levies; N49. 357 billion non-Federation Accounts levies; and N74. 282 billion, Value Added Tax (VAT).

He blamed the decrease of N525.5 million in revenue the NCS recorded this year’s first half, when compared to the sum generated during the corresponding period last year, on economic recession.

“Access to foreign exchange and the drastic fall in the value of Naira have also affected the Service’s revenue generation,” Adeniyi said.

According to him, the removal of the 41 items from the Central Bank of Nigeria (CBN) foreign exchange window affected the revenue generation by the service.

“However, there are positive indications that the economy may bounce back in the last quarter of the year,” he said.

He went on: “We (Customs) are working with western neighbour of Benin Republic to strengthen our transit trade, particularly with vehicles.

“So, we expect that this will have a positive effect on our service revenue generation in the last quarter.”