Your tweet is misleading as usual. Let’s run the numbers.
NGR Customs revenue:
2011: N741bn ($4.7bn)
2012: N850bn ($5.3bn)
2013: N833bn ($5.2bn)
2014: N977bn ($5.6bn)
2015: N903bn ($5.2bn)
2016: N898bn ($2.9bn)
2017: N1.37trn ($4.5bn)
Customs earn in dollars.
THREAD
NGR Customs revenue:
2011: N741bn ($4.7bn)
2012: N850bn ($5.3bn)
2013: N833bn ($5.2bn)
2014: N977bn ($5.6bn)
2015: N903bn ($5.2bn)
2016: N898bn ($2.9bn)
2017: N1.37trn ($4.5bn)
Customs earn in dollars.
THREAD
“Customs primarily generate revenue through the collection of duty on import and export, which also includes Value Added Tax (VAT). Customs charges are denominated in dollars and not naira. However, the duty can be paid in dollars or its naira equivalent.”
“Whether Customs charges are paid in dollars or naira, ultimately the revenue generated and remitted by Customs will be calculated in Naira since it is the official currency of Nigeria.”
“Between 2015 and 2017, naira has depreciated against the dollar more than 50%. This reality presupposes that if an importer is charged $20 duty on import in 2017 he will need about N6000 or more at an exchange rate of N305 to $1 CBN rate.”
“The same $20 would have cost the importer about N3000 in 2015 at N150-$1.”
“But the illusionary effect of this is that while patrons are still paying the same amount in dollar terms, CUSTOMS WOULD ACTUALLY EARN MORE IN NAIRA BECAUSE OF THE DEVALUATION OF THE NAIRA; A SITUATION THAT WOULD NATURALLY CREATE A FALSE IMPRESSION OF MORE REVENUE FOR CUSTOMS”.
“In 2011, 2012, 2013, and 2015, Customs generated N741.8billion, N850.8 billion, N833.4billion and N904 billion respectively. In those years the official naira to dollar exchange rates for the most part was N157, N158, N160, and N172 respectively.”
“Since Customs charges are presented in dollars an appropriate evaluation of the revenue in this case will be in dollar terms.
When the Customs revenue for the previous years are converted to dollars at the prevailing exchange rate in those years, the figures would be...”
When the Customs revenue for the previous years are converted to dollars at the prevailing exchange rate in those years, the figures would be...”
“$4.7billion (2011), $5.3billion (2012), $5.2billion (2013), and $5.2billion (2015). Prior to the recent revenue by the Nigerian Customs, the highest ever generated was in 2014 when the revenue peaked at N977billion naira at an official exchange rate of N172 to $1.”
“IN DOLLAR TERMS THE NIGERIAN CUSTOMS GENERATED $5.6BN IN 2014 BEING THE HIGHEST EVER.”
“The implication of this is that all is not well with the current state of the industry. Rather than celebrate $3.2 billion as the highest income generated we should been asking ourselves why the revenue of Customs has dropped by nearly 40% between 2014 and now.”
