The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, has disclosed that the NCS failed to reach its revenue target of N3.68 trillion, earning about 87 per cent of its target for 2023 with a shortfall of N478 billion due to a challenging operational environment.

However, it recorded a total revenue collection of N3.21 trillion, marking a substantial 21.4 per cent increase from the previous year’s N2.64 trillion.

Adeniyi acknowledged that operational challenges played a pivotal role in the initial N532 billion revenue shortfalls recorded in the first half of 2023.

These challenges included lower transaction volumes, compliance issues, inadequate infrastructure, capacity gaps, delays in policy implementation, and socio-political factors.

He said: “Operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delays in policy implementation and socio-political factors.

“The anxiety associated with a major election year, the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills, temporarily impacted purchasing power and overall economic activities.

“The transition of power to the President Tinubu-led Administration brought about new policy direction, including the removal of fuel subsidy, the floating of the exchange rate, and the closure of Nigeria’s Northern borders with Niger Republic, adding another layer of complexity.

“These challenges led to a revenue shortfall of N532 billion in the first half of the year, falling short of the projected revenue target of N1.84 trillion.”

Further, he noted that the latter part of 2023 witnessed a positive transformation following Adeniyi’s appointment as Comptroller-General in July.