The Sea Empowerment and Research Center (SEREC) has taken a position on the N12 trillion revenue target given to the Nigeria Customs Service for 2025 by the national Assembly.
Describing it as “ambitious”, SERC in a position paper made available to Maritime Bits, picked holes in the reasons given for the increase in the 2025 revenue target for NCS.
It argued that government need to strike a balance as to whose duty it is to give or approve a yearly revenue targets to its revenue generating agencies.
Signed by its Head of Research, Dr. Eugene Nweke, SEREC said: “Without mincing words, SEREC wish to candidly posit that while it is understandable that the agencies has an obligation to defend its yearly budgets before the lawmakers, it is not constitutionally clear whether it falls under the purview of the lawmakers to also give yearly revenue targets to the revenue agencies.
“SEREC is of the view that there is need for a better assigning of role in this regards, hence it seeks a clarification as to between the executive arm and the legislative arm which is the right authority to give yearly revenue targets to the NCS? SEREC wish to strongly opine that, yearly revenue targets are not just mere figures to be given or pronounced under the euphoria of a prevailing excitement, rather, revenue targets are given or pronounced after so many variables and indices duly putting in the right perspectives”.
According to it, such variables or indices may include weighing the impact of the previous year revenue generated on the trading environment, the economy in real time effects of inflation rate analysis, a performance graphs for local production inhibited by imported products, the direct impact to the lives of the citizens in general, with regards to consumers price index and poverty level indicators.

It maintained that the NCS revenue target of ₦12 trillion for 2025 is quite ambitious and a stretch, considering the current state of the economy.
Other factors which it adduced for its opposition to the revenue target given to NCS for 2025 include heightened trade policies uncertainties, dwindling imports and exports activities, low ship calls to the nation’s seaports and lower cargo throughputs.
Apparently worried by the development, it admitted that it was “challenging” to really project how the NCS intends to achieve this target.
It hinged its argument on what it called the “ever-increasing foreign exchange regime” and harsh trading environment which it maintained remains additional hurdles that could hinder the NCS progress.
According to SEREC, it is worth noting that ahead of schedule, NCS did achieve a significant milestone in 2024, generating a revenue of ₦5.07 trillion and at dying minute reported as closing it up to ₦6.105 trillion. However, this milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders, as well as improved processes and modernized systems.
The research centre argued that for NCS to attain its 2025 revenue target, it would need to significantly scale up its efforts and find ways to mitigate the challenges posed by the current economic environment, in addition to blocking leakages via the deployment of modern technologies.

It expressed worry that the aggressive pursuit of the NCS 2025 revenue target could have a negative impact on the trade environment and the economy as a whole.
Continuing, SEREC said: “It may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially, where compliant level is at single digit increase. Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of customs regulations.
“While the NCS’s revenue target is ambitious, it is essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run”.
SEREC advised the government by reminding and calling its understanding to the effect that NCS actions and inactions touches every sphere of our socio economic life of the citizens, who are already down, poverty wise, with inflation rate hitting at 34.8 percent in December, 2024.
It called on the Minister of Finance and the Coordinating Minister of the Economy is also the Chairman Board of Customs, Mr. Olawale Edun to be deliberate and real to his ministerial obligation to the nation in the context of the matter under consideration.

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