Forex volatility, drop in vehicle importation cut Customs revenue by 4.5 per cent

Following foreign market volatility, Nigeria’s customs service revenue dropped by 4.5 per cent in the first half of 2023.

NCS disclosed this in a recent document titled “Implementation of the floating foreign exchange rate regime,’ signed by K. I. Adeola, the Assistant Controller General, IT and Modernisation.

The first six months of 2022, NSC had announced N1.4 trillion as revenue, but the figure dropped to N1.3 trillion in the same half of 2023.

The CBN has instituted the floating exchange rate regime, which has given rise to constant changes in the exchange rate for trade. The policy is to be implemented by all ministries, departments, and government agencies, including the NCS,” the circular read in part.

The development comes amidst the drop in vehicle importation caused by the 40 per cent increase in excise duties payable by importers of cargoes, including vehicles.

NCS had a few weeks ago raised the exchange rate used to calculate import duty from N422.30/dollar to N589/dollar and moved from N589/$ to N770/$.

The Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, stated that revenue is expected to drop following the high cost of importation.


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