The Nigeria Customs Service (NCS) recorded a strong start to 2025, recording ₦1.75 trillion in border revenue for the first quarter of 2025, beating its target by more than six per cent and growing collections by 34 per cent year-on-year, BusinessDay found.
Among the drivers of this uptick is the country’s surging imports. In Q1 2025, Bashir Adeniyi, the comptroller general of customs, reported that the Service processed ₦36.3 trillion in total trade value, with imports accounting for ₦14.8 trillion, up 26.72 per cent from a year ago.
Also, the goods are heavier and more valuable. The weight of imports grew by 40.14, with 327,928 import declarations recorded, representing a 5.28 per cent increase.
Much of the revenue was also due to export activity. Though export transactions fell, volumes surged. Customs reported that only 8,153 export shipments were processed in the first quarter of the year, fewer than both Q4 2024 and Q1 2024, but the cargo was heavier and more valuable.
Exports weighed in at 5.03 billion kg, greater than the 1.12 billion kg in Q1 2024, even though the number of shipments dropped. The export value also remained steady year-on-year at around ₦21.5 trillion, but rose 19 per cent compared to the last quarter.
“This data clearly suggests Nigeria’s shift toward bulk commodity exports, with larger shipments being processed through fewer transactions, while maintaining consistent total export value,” stated the CGC. He said it shows increased confidence in Nigeria’s export systems.
During this period, Customs waived import duties on essential food items like maize, rice and sorghum, as enforced by the federal government. The NCS said these contributed to food price reductions.
“The Q1 2025 waivers on maize, rice, and sorghum also contributed to lowering prices by 12 to 18 percent this year,” the CGC said. “At the same time, the larger exemptions from 2024 on rice and wheat are now showing their full effect after taking time to work through the supply chain.”
The tariff and FX debacle
But even as the numbers show strength, underlying problems in foreign exchange and global tariffs are casting a long shadow.
The Service outperformed expectations across all three months, pulling in ₦647 billion in January alone, a 65.77 per cent jump compared to a year earlier. February added ₦540 billion and March rounded out the quarter with ₦563 billion.
Yet, the gains came amid steep naira volatility, which Customs officials flagged as the “chief” concern.
Bashir Adeniyi, comptroller-general of Customs, said the exchange rate fluctuated 62 times within the quarter, ranging from a low of $1/₦1,477.72 to a high of $1/₦1,569.53, with an average of ₦1,521.59 per dollar. He warned that such swings disrupted trade flows and complicated the valuation of imports, weakening the predictability of revenue.
“This volatility, though slightly moderated from last quarter, which saw rates as high as N1,688.28, continues to create uncertainty for traders and affects the predictability of import costs,” Adeniyi told journalists on Tuesday.
External threats also loom. In March, the United States imposed a 14 per cent reciprocal tariff on Nigerian exports, adding pressure on exporters already facing fierce global competition. Although the tariff was later paused, a baseline 10 per cent duty remains.
“This development has potential implications for our export trade and requires strategic diplomatic and policy responses,” Adeniyi said.
The Central Bank of Nigeria stepped in with nearly $200 million injected into the FX market in April, an attempt to cushion the naira after Trump-era tariffs roiled global trade. Customs said talks are ongoing to stabilise the FX rates used for import declarations.