As Customs Strengthens Nigeria’s Non-oil Revenue

Donatus Eleko

At a time when Nigeria’s public finances remain under severe strain, non-oil revenue has become increasingly critical to sustaining government operations across the federation. With crude oil earnings fluctuating and production challenges persisting, attention has shifted to agencies whose performance now carries broader macroeconomic significance.

Within this context, the Nigeria Customs Service (NCS) has emerged as a central pillar in the country’s evolving revenue architecture. Beyond its traditional role of border control and trade facilitation, the Service has assumed heightened fiscal importance as the government seeks to plug widening budget gaps and stabilize public finance inflows.

Recent figures underscore this changing dynamic. The NCS remitted about N3.7 trillion to the Federation Account between January and November 2025, reflecting both increased trade activity and more aggressive revenue collection measures. The inflows highlighted the growing weight of customs and excise revenues at a time when oil receipts remain weak.

The development signals a broader shift in Nigeria’s fiscal conversation, which is one that places greater emphasis on efficiency, enforcement, and institutional performance within revenue-generating agencies. As Customs strengthens its contribution to the Federation Account, questions are also emerging about sustainability, reforms and the long-term role of trade-based revenue in supporting national development.

The Nigeria Customs Service plays a vital role in the country’s economic framework, serving as a gatekeeper for revenue collection and national security at the borders. Since assuming office, the Comptroller-General of Customs (CGC), Adewale Adeniyi, has spearheaded a wave of institutional transformation, blending professionalism with innovation to modernise Customs operations and reposition the agency as a critical enabler of economic growth.

Under Adeniyi’s watch, the NCS has witnessed significant improvements in trade facilitation, revenue generation, and border security. His emphasis on digitisation, transparency, and compliance has helped close loopholes, enhance efficiency, and boost stakeholder confidence in the agency’s processes.

Specifically, data from the latest presentation made to the Federation Account Allocation Committee (FAAC) indicated that total collections for the first 11 months of last year stood at about N3.697 trillion, reflecting performance anchored largely on import duties, which continued to account for the bulk of inflows.

The figure placed customs as one of the most reliable non-oil revenue contributors in 2025, at a time the government is pushing aggressive fiscal reforms to shore up revenues and narrow the budget deficit.

However, for the entire 12 months in 2024, the NCS’ total federation remittance was N3.6 trillion. This means that if the 2025 trend continued in December, other things being equal, remittances to the federation alone may have hit N4 trillion.

“The total 2024 revenue collected comprises three main components. The first was the federation accounts and we had about N3.6 trillion. The second was the non-federation accounts levies where we had N816.9 billion and the third component was the value-added tax where we collected N1.6 trillion,” Adeniyi, said while giving a breakdown of the 2024 operations in January 2025.

An analysis of the latest figures showed that import duty alone contributed roughly N3.03 trillion during the period, representing more than 81 per cent of total customs revenue. This dominance highlighted Nigeria’s heavy dependence on imports for consumption and industrial inputs, even as policymakers reiterate commitments to import substitution, local production and export expansion.

Besides, excise duty followed distantly, generating about N257.5 billion; Common External Tariff (CET) special levy was N252.4 billion while other revenue lines made comparatively marginal contributions.  For instance, fees constituted N158.6 billion while auction sales raked in N82.5 billion. There were no penalty charges during the period under review.

The data indicated that customs collections were relatively robust across most months, with January opening the year strongly at about N400.3 billion, the highest monthly inflow recorded within the period under consideration.

This early surge set the tone for the year and reflected a combination of exchange rate adjustments, higher customs valuation of imports and improved enforcement at the ports and border posts. February recorded N299.5 billion; March posted N283.4 billion while April was N358 billion.

In May, total revenue paid into the federation account was N359.4 billion; N315.29 billion in June; N353.23 billion in July; N322 billion was recorded in August; N349 billion in September while October and November also recorded performances of  N370.2 billion and N287.1 billion respectively, underscoring the volatility but overall resilience of revenue flows.

Excise duty collections accounted for just under seven per cent of total revenue, fees contributed roughly 4.3 per cent of total receipts, while auction sales generated just over 2 per cent and CET accounted for nearly 7 per cent of the total, reinforcing the importance of regional trade arrangements in Nigeria’s customs revenue profile.

Part of the presentation during the hybrid meeting held on December 11 and 12, showed that:” The collection of N287,174,969,532.50 in November 2025 accounts for 89.43 per cent of the 2025 monthly budget of N321,116,460,253.23.

He added: “This is attributable to the decrease in the volume of dutiable imported goods, excisable goods, fees and CET levies in the month under consideration. The collection for November 2025 is lower than the October 2025 revenue collection of N370,281,129,180.31 by N33,941,490,720.73 or 22.44.”

Commenting on the feat, Adeniyi said no modern security or revenue operation can succeed without timely, credible and well-applied intelligence, adding that these remain critical to the success of modern customs operations.

Adeniyi referenced recent global and domestic security developments, particularly military and security interventions across different regions, including the interception of arms and ammunition across the country.

The CGC noted that intelligence remained the common thread behind every successful military or paramilitary operation, stressing that customs officers must appreciate its value beyond theory.

Under his watch, the NCS has also intensified efforts to modernise its systems—expanding digitalisation, improving risk management, and emphasising intelligence-led operations. These initiatives are not only aimed at improving efficiency but also at aligning Nigeria with the standards required for full AfCFTA participation.

Adeniyi’s strategy goes beyond internal reforms as it includes building partnerships with regional customs bodies, strengthening Nigeria’s presence in AfCFTA technical committees, and advocating for a more central role for Customs in continental trade negotiations. His approach signals a departure from the old model where customs administrations were treated as mere revenue collectors rather than strategic drivers of economic competitiveness.

Adeniyi, who in July last year assumed the position of the Chairperson of the  World Customs Organisation (WCO) Council, the governing body of the organisation, comprising the Heads of 186 Customs administrations, …

In all, the NCS’s performance underscores the critical role of non-oil revenue sources in stabilising Nigeria’s public finances at a time when oil earnings remain volatile. The scale of remittances reflects improvements in customs administration, enhanced compliance, and the impact of ongoing reforms aimed at plugging leakages and broadening the revenue base.

Beyond the figures, the rising contribution of customs revenue highlights the importance of trade facilitation, efficient border management and technology-driven processes in driving sustainable fiscal outcomes. As global and domestic economic uncertainties persist, strengthening institutions such as the NCS becomes central to cushioning government finances and funding essential public services.

Going forward, sustaining this momentum will depend on deepening reforms, balancing revenue mobilisation with trade competitiveness, and maintaining transparency and accountability. If consolidated, the gains recorded by the NCS could further reposition non-oil revenue as a reliable pillar of Nigeria’s fiscal resilience.