SEREC Questions Ambitious ₦12 Trillion Revenue Target for Nigeria Customs Service in 2025

SEREC Questions Ambitious ₦12 Trillion Revenue Target for Nigeria Customs Service in 2025

Fwdr Dr.Eugene Nweke,Head Research,SEREC 

By Frank Odinukaeze

The Sea Empowerment and Research Center (SEREC) has raised concerns over the ambitious ₦12 trillion revenue target set for the Nigeria Customs Service (NCS) for 2025. SEREC is seeking clarification on whether it is within the purview of the legislative arm to set such targets, or if it should be the responsibility of the executive arm.

Fwdr Eugene Nweke, Head of Research of SEREC ,who articulated the organisation’s position,argues ,”That revenue targets should not be set arbitrarily but should be based on various economic indicators and the impact of previous revenue generation on the trading environment and the economy”. The organization highlights the challenges posed by the current economic climate, including heightened trade policy uncertainties, dwindling imports and exports, low ship calls to ports, and lower cargo throughputs.

SEREC noted,”Despite the NCS achieving a significant milestone in 2024 by generating ₦6.105 trillion, SEREC believes that the new target for 2025 is overly ambitious. The organization points out that the ever-increasing foreign exchange regime and harsh trading environment are additional hurdles that could hinder the NCS’s progress.”

It warns that the aggressive pursuit of this revenue target could negatively impact the trade environment and the economy, leading to increased scrutiny and harassment of importers and exporters. This could further discourage trade and investment. “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” SEREC submitted.
SEREC reminded the NCS of the cause and effects of its action stressing that, “the NCS actions and inactions touches every sphere of the socio economic life of the citizens, who are already down and groaning with poverty, with inflation rate hitting 34.8% in December, 2024”
It called on the Hon. Coordinating Minister of Finance and Budgeting, who doubles as the Chairman Board of Customs “to be deliberate and real to his ministerial obligation to the nation, in the context of the matter under consideration”
In conclusion, while acknowledging the NCS’s achievements, SEREC calls for a more balanced approach that considers the current economic realities and the need for trade facilitation and enforcement. The organization emphasizes that a more realistic and well-considered revenue target would be more effective in the long run.