In the first quarter of 2024, the Nigeria Customs Service (NCS) witnessed a decline in the volume of Single Goods Declarations (SGDs) for imports, marking a notable shift from previous years.
According to data released by the NCS, there was a decrease of approximately 5%, with the total volume of SGDs dropping from 327,492 in Q1 2023 to 311,492 in the same period of 2024. This decline becomes more pronounced compared to Q1 2022, showing a significant drop of about 23%.
The NCS attributed this decline primarily to fluctuating import duties, which have presented challenges for importers. The Central Bank of Nigeria (CBN) issued 28 different import duty rates in the first three months of 2024, creating uncertainty and disruptions in import activities.
Adewale Adeniyi, the Comptroller General of Customs, highlighted the impact of these fluctuations on the NCS’s operations. He noted that the varying exchange rate regime for import duties posed significant challenges, disrupting their activities.
The Minister of Finance, Wale Edun, has initiated consultations with the CBN to address these concerns and mitigate the potential impact of exchange rate fluctuations on import activities.
Despite the challenges faced in imports, there has been a positive trend in export activities and revenue generation. The NCS reported a growth of 10.60% in export activities, with a total of 10,786 SGDs processed in 2024 compared to 9,752 transactions in 2023.
Furthermore, revenue generation for Q1 2024 increased by 122.35% compared to the previous year, totalling over N1.3 trillion. The revenue breakdown for the quarter shows significant earnings in January, February, and March, indicating a promising start to the year for Nigeria’s trade sector.
