…as NCS collects N1.75trn in Q1, 2025 to exceed target
Nigeria will open talks with United States Authorities to address the newly imposed 14% reciprocal tariff on the country’s exports, Adewale Adeniyi, Comptroller-General of the Nigeria Customs Service (NCS) disclosed on Tuesday in Abuja.
This is as concerns mount over the tariff impact on Nigeria’s trade flows and export competitiveness.
The Customs boss made the announcement as part of the NCS’s Q1 2025 performance briefing, where he outlined both achievements and major headwinds facing the country’s trade environment.
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“This development has potential implications for our export trade and requires strategic diplomatic and policy responses,” Adeniyi said, referring to the U.S. tariff move.
While details remain sketchy, the CG said consultations among relevant Nigerian authorities led by the Ministry of Industry, Trade and Investment are already underway to shape the response.
Adeniyi explained that the Government is navigating the tariff slam with a calm and strategic regional approach.
“We are working on a regional approach that addresses both Nigeria’s economic interests and broader trade dynamics,” he responded to BusinessDay’s question.
He emphasised that while tariff structures vary across countries, Nigeria’s official response, expected in the coming days, would reflect consultations with stakeholders and align with its role as Chairman of ECOWAS.
Despite mounting global and domestic challenges, the NCS collected ₦1.75 trillion in Q1 2025, exceeding its quarterly target of ₦1.645 trillion by ₦106.5 billion. This indicates 106.47% of its projection. It also marks a 29.96% year-on-year increase compared to the ₦1.35 trillion collected in Q1 2024.
“This outstanding performance confirms our revenue optimization strategies are working. We’ve effectively curtailed leakages while streamlining compliant trade,” the Customs chief said.
The month-by-month breakdown showed robust growth across the board, with the agency collecting ₦647.88 billion in January, some 65.77% year-on- year growth, and 18.12% above target.
In February, ₦540.11 billion was collected, showing 19.97% growth, and 1.3% above target, while March figure was ₦563.52 billion or 11.22% growth, and 2.7% above target.
Adeniyi attributed the performance to tighter enforcement, digitisation of clearance processes, and strengthened partnerships across Government and private sector stakeholders.
While revenue collection has been strong, the CG highlighted that Customs faced 62 exchange rate adjustments in Q1 2025 alone, with the naira ranging from ₦1,477.72 to ₦1,569.53 per dollar, averaging ₦1,521.59.
Although more stable than Q4 2024 when rates peaked at ₦1,688.28, the volatility, the CG noted, continues to unsettle importers and complicate Customs valuation.
“We are working closely with the Central Bank and Ministry of Finance to stabilize the exchange rate framework used for import declarations,” he said.
Additionally, the suspension of the Financial Customs Service Operation (FCSO), also known as the four percent FOB policy, triggered temporary disruptions during the quarter, requiring rapid operational adjustments across customs formations.
Meanwhile, smuggling remains an entrenched challenge despite enhanced surveillance and tech-driven enforcement.
However, through practical solutions like its B’Odogwu platform, the NCS ramped up anti-smuggling operations, recording 298 seizures in Q1 2025, intercepting ₦7.7 billion worth of smuggled goods, and reflecting a 78.41% increase compared to Q4 2024.
However, seizures were down 19.70% compared to Q1 2024, when the DPV reached ₦9.59 billion, a sign of improved compliance and the deterrent effect of increased enforcement.
Rice remained the most prevalent seized commodity, with 159 cases involving 135,474 bags valued at ₦939.31 million. Petroleum products followed closely, with 61 seizures totaling 65,819 liters, while narcotics interceptions showed a marked uptick. The NCS also seized high-value wildlife products worth ₦5.65 billion.
“We continue to refine our enforcement strategies through intelligence-led operations and advanced non-intrusive inspection technology,” the CG said, emphasising the NCS’s commitment to strengthening interagency cooperation to safeguard national revenue and security.
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While the CG did not reveal specific policy shifts, he signaled the Government’s willingness to assert the country’s trade interests on the global stage.
“We must protect our export interests while ensuring fair treatment in global markets,” he stated.
He further explained the agency’s key role so far, in supporting the federal government’s food security initiatives through duty exemptions on essential food imports, including maize, rice, and sorghum.
In Q1 2025, waivers totaling ₦45.3 billion for maize, ₦751.6 million for rice, and ₦2.3 billion for sorghum contributed to a 12-18% reduction in food prices.
This builds on 2024 exemptions for rice and wheat, which initially faced delays but are now showing significant impacts.
Adeniyi emphasised that the gradual benefits of these policies have stabilised food prices, improving affordability over time.
“The combination of current and past exemptions has played a crucial role in improving food affordability. This shows how customs adjustments can influence food costs both in the short term and long term.”
He further announced that the NCS also processed 327,928 Single Goods Declarations (SGDs) for imports in Q1 2025, reflecting a 5.28% increase, while total trade value reached ₦36.3 trillion.
