Economy
N12 trillion revenue target for Customs could harm trade, OPS warns NASS
DDM News

The Organised Private Sector (OPS) has expressed concerns that the ambitious N12 trillion revenue target set for the Nigeria Customs Service (NCS) may negatively impact the trade environment and the broader economy.
According to information gathered by Diaspora Digital Media (DDM), through extensive interviews with economic experts and industry stakeholders, this target could lead to worsened inflation, discouraging trade and investment.
This is particularly troubling given the current low levels of compliance in the sector.
OPS believes that this target could significantly contribute to inflation, further discouraging both trade and investment.
The warning, directed at the National Assembly, reflects mounting concerns that pursuing such a revenue goal could harm the country’s economic growth.
In a statement issued to the Nigerian Tribune on Wednesday, the Sea Empowerment and Research Center (SEREC) stressed that setting annual revenue targets should not be based on excitement or political pressures.
Instead, it requires careful consideration of multiple economic factors that impact trade, business, and the overall economy.
SEREC argues that setting revenue targets must take into account the previous year’s revenue, inflation rates, local production levels, consumer prices, and poverty indicators.
Fwdr. Eugene Nweke, the Head of Research at SEREC, emphasized the importance of considering these factors before setting such ambitious goals.
He explained that this involves analyzing how past revenue has affected the trade environment, trends in inflation, local production capabilities, and other relevant economic indicators.
Nweke pointed out that the NCS’s N12 trillion revenue target for 2025 seems overly ambitious, especially given the current economic challenges.
He also noted that trade policy uncertainties have already diminished import and export activities, reduced ship calls to ports, and lowered cargo throughput, all of which restrict import volumes.
Given these challenges, it remains unclear how the NCS intends to meet this ambitious target.
Notably, the NCS reached a significant milestone in 2024 by generating ₦5.07 trillion in revenue, which was later increased to ₦6.105 trillion.
This achievement was largely attributed to the NCS’s strategic initiatives, including improved stakeholder collaboration, process optimization, and system modernization.
Despite this success, pursuing a target of ₦12 trillion in 2025 could have negative repercussions on both trade and the broader economy.
SEREC warns that it could lead to increased scrutiny and harassment of importers and exporters, further discouraging trade and investment.
The low levels of compliance add to the difficulty, suggesting that aggressive enforcement measures could backfire.
Furthermore, SEREC expressed concern that an overwhelming focus on revenue generation could divert attention from other important customs operations, such as trade facilitation and regulatory enforcement.
Facilitating trade is crucial for maintaining the flow of goods and services, and neglecting this aspect could harm the broader economy, especially during challenging times.
While SEREC acknowledges the ambition behind the NCS’s revenue target, it advises the government to adopt a more balanced approach.
This would consider the current economic realities while also addressing the need for trade facilitation and robust enforcement of customs regulations.
In conclusion, SEREC calls on the government to recognize that the actions of the NCS impact citizens’ socio-economic lives, especially given that inflation reached 34.8% in December 2024.
Similarly, the Centre for the Promotion of Private Enterprise (CPPE) has expressed concerns over the National Assembly’s focus on revenue, particularly regarding the arbitrary setting of revenue targets for Ministries, Departments, and Agencies (MDAs).
In a statement shared with the Nigerian Tribune, Dr. Muda Yusuf, CEO of CPPE, warned that excessive pressure on MDAs to generate more revenue would lead to inflationary consequences.
Yusuf explained that such pressures are often passed on to businesses in the form of higher fees, penalties, import duties, and regulatory charges, which could negatively affect the business climate and deter investment.
Dr. Yusuf highlighted that these outcomes contradict the government’s goals of boosting investment, curbing inflation, and creating jobs.
He stressed that revenue targets should be based on empirical data, taking into account the economy’s absorptive capacity and the broader economic implications.
Yusuf further argued that an overemphasis on revenue generation could stifle investment, exacerbate inflation, and increase poverty, which would ultimately hinder economic growth.
The CPPE’s statement calls for a more balanced approach to revenue growth—one that aligns with the nation’s broader economic objectives, such as fostering investment and controlling inflation.
Yusuf emphasized that an aggressive push for revenue, without considering the wider economic context, could harm the very businesses and investors that drive growth.
Both SEREC and CPPE have called for a more balanced approach to revenue generation, urging policymakers to consider the realities of Nigeria’s economy.
They warn that focusing too heavily on ambitious revenue targets could result in policies that harm trade, deter investment, and worsen the country’s existing economic challenges.
By considering a broader range of economic indicators and taking a more holistic approach to customs operations, the government could better support Nigeria’s growth and development.
The concerns raised by OPS, SEREC, and CPPE reflect broader worries in the private sector about the sustainability of Nigeria’s economic policies.
There is a growing recognition that revenue generation should not come at the expense of a healthy trade environment.
Instead, policies should be focused on encouraging investment, facilitating trade, and managing inflation.
As such, the government must approach the N12 trillion revenue target with a clear understanding of its long-term effects on the economy and the well-being of Nigerian citizens.
In conclusion, while the N12 trillion revenue target for Customs is ambitious, it is critical to consider the broader economic environment and the current challenges facing trade.
For Nigeria to continue its path toward sustainable growth, the government must adopt a more balanced approach to revenue generation—one that promotes trade, attracts investment, and ensures economic stability.
Aggressively pursuing revenue goals without considering their full impact could undermine these aspirations and make it more difficult for businesses to thrive in Nigeria’s increasingly complex economic landscape.
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