Nigeria Customs Service uncovers 4.18trn value gap in 2024 import declarations

The Nigeria Customs Service (NCS) has revealed a massive disparity between the declared and assessed values of imported goods for the year 2024.

According to the newly released Pre-Arrival Assessment Report (PAAR) Performance data, customs authorities recorded a 117.92 percent increase in assessed values over what was initially declared by importers, uncovering a value difference of 4.18 trillion.

The 2024 performance data highlights a significant revenue protection effort by the customs service.

While importers declared a total value of 3.54 trillion for goods bound for Nigeria, the NCS evaluated the true worth of these imports at 7.731 trillion.

This sharp upward review points to widespread discrepancies and non-compliance in how goods are valued at their point of origin versus their actual market or customs value.

A breakdown of the total 213,500 Pre-Arrival Assessment Reports processed in 2024 paints a stark picture of trade compliance.

The vast majority of submissions required intervention from customs officials.

A staggering 85 percent of all reports totaling 181,454 PAARs had to be uplifted. The customs service explicitly stated that such upliftments are a direct result of the undervaluation of goods by importers.

In addition to the uplifted documents, another 16,086 reports, representing 7.5 percent of the total volume, had to be amended.

The NCS attributes these specific amendments to the misclassification of imported cargo. Consequently, only a mere 7.5 percent of the total submissions, amounting to 15,960 reports, were passed as valid PAARs without requiring any alterations or upward reviews.

The Pre-Arrival Assessment Report serves as a mandatory electronic trade document issued by the NCS for all imported goods. Its primary function is to accurately assess and determine the appropriate customs duty, proper classification, and general compliance requirements before the cargo even arrives at Nigerian ports.

By actively identifying and correcting undervaluations and misclassifications through this system, the NCS aims to strengthen risk management protocols and ultimately facilitate faster, more transparent cargo clearance.