The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, has raised concerns over the N12 trillion revenue target imposed on the Nigeria Customs Service (NCS) for 2025, warning that the move could further cripple businesses and burden consumers.
In a birthday message delivered from the United States, Ogunojemite criticized the National Assembly’s decision to drastically raise the initial NCS revenue projection from N6.5 trillion to N12 trillion, stating that the focus on revenue generation rather than trade facilitation is hurting the economy.
Recall that during the 2025 budget defense session in Abuja, the National Assembly’s Joint Committee on Finance, led by Senator Sani Musa and Hon. James Faleke, raised the NCS revenue target, citing the agency’s potential to generate more funds. This move came despite the fact that the Comptroller-General of Customs, Bashir Adewale Adeniyi, had earlier proposed N6.5 trillion based on the service’s 2024 performance, which saw revenue generation of N6.1 trillion.
However, Ogunojemite argued that such an aggressive revenue target, primarily driven by high import duties, would have serious economic repercussions, including inflation, job losses, and increased smuggling.
He noted that higher customs duties directly lead to an increase in the cost of imported goods, which businesses ultimately transfer to consumers, making essential commodities more expensive.
He also warned that the rising cost of importation discourages investment, particularly for businesses reliant on foreign raw materials and equipment, ultimately stifling economic growth.
The APFFLON president further pointed out that unrealistic customs targets could inadvertently fuel smuggling, as businesses and individuals seek ways to circumvent high tariffs.
While acknowledging the efforts of the Nigeria Customs Service in curbing smuggling, he stressed that exorbitant duties remain a key driver of the illicit trade. He added that Nigeria’s aspirations to benefit from the African Continental Free Trade Area (AfCFTA) agreement could be undermined if excessive customs duties make Nigerian businesses uncompetitive in regional and global markets.
Ogunojemite lamented the 150% surge in asset prices over the past year, which has further complicated the cost of acquiring new business assets.
While he expressed hope that the Senate’s consideration of a bill to stabilize exchange rates for customs duties might offer some relief, he insisted that businesses continue to face extreme financial pressure due to unpredictable customs policies.
He urged the National Assembly to reconsider its stance and encourage the NCS to prioritize trade facilitation over revenue collection, arguing that an economy thrives not just by imposing high duties but by creating an enabling environment for businesses to flourish.
He maintained that with businesses already struggling under harsh economic realities, he said the smart approach would be to inspire the Nigeria Customs Service to tilt towards trade facilitation rather than revenue generation anchored solely on import duties.
