Customs is turning to AI to close revenue gaps and strengthen supervisory collaboration

The Nigerian Customs Service has announced major plans to deploy artificial intelligence in a bid to improve revenue collection, increase transparency and curb persistent leakages in its operations.

The initiative was announced on Monday in Abuja at the opening of a three-day training program focused on revenue generation, remittances and AI-based reconciliation. The move also signals a change in the agency’s relationship with lawmakers, with a new emphasis on collaboration over confrontation.

Speaking at the event, the Comptroller General of Customs, Adewale Adeniyi, said the Service was deliberately redefining its engagement with the legislature, moving from a reactive stance to a more proactive partnership.

Adeniyi said, “We all know that in a presidential system of government, the power to oversee the executive rests entirely with parliament, and this is done through committees such as the Public Accounts Committee in both chambers. What we have become accustomed to over the years are calls asking us to explain our revenues, processes and operations.”

He stressed that regardless of whether engagement is through calls or invitations, the primary goal remains accountability and fiscal discipline.

“This summons is binding under the Constitution, and we have no choice but to comply with it. Sometimes, if you are invited for a certain time and you arrive late, you may even be threatened with punishment.

“But today, we have deliberately reversed that narrative. Now Customs is inviting leading committees to interact with us, and we are pleased that they are responding enthusiastically.

“Whether through summons or invitations, the goal remains the same, we are united in ensuring transparency of public accounts, implementing fiscal discipline, and taking into account inefficiencies in revenue generation,” he said.

Adeniyi explained that AI will deepen the Service’s existing technology systems, enable better detection of anomalies in trading patterns and help close gaps in the revenue process.

“Over the last 20 years, technology has developed and played a very important role in our operations. Today, we have a risk management system that helps us manage the large volume of trades we handle, and through this system, we are able to analyze international trade patterns and trends.

“The World Customs Organization has also introduced artificial intelligence into its harmonized systems, enabling better classification of goods through machine learning. We have also implemented AI in our scanning systems, where AI-enabled scanners can guide image analysts to predict the nature of imported goods,” he said.

He noted that revenue generation involves multiple stakeholders, and urged others in the fiscal ecosystem to adopt similar innovations.

“This is critical in preventing leaks and ensuring compliance. However, revenue generation, remittances and reconciliation involve a long value chain that includes banks, platform providers, auditors, the Revenue Mobilization Fiscal and Allocation Commission, the Federation Accounts Allocation Committee and the National Assembly.

“We are just one part of the chain, and as we take a leap forward, we encourage other stakeholders to adopt similar innovations so that collectively we can maximize the benefits of AI,” he added.

Also speaking, Chairman of the House of Representatives Public Accounts Committee, Bamidele Salam, described this engagement as a sign of growing institutional maturity, dismissing perceptions that legislative oversight was punitive.

He said, “Contrary to public perception, legislative oversight is not designed to prey on institutions but to strengthen systems of government.

“Every time we invite ministries, departments or agencies, the prevailing thinking is that parliament is on a fault-finding mission, that we are just looking for errors in the books. But that is not true. What we are really interested in is the functioning of the Nigerian state and the level of compliance with the laws that we have agreed to abide by.”

Also read: Naira earns N10, trades at N1400/$1 on black market

Salam recalled previous audits with Customs, noting the decline in violations and praising recent reforms.

“When I was chairman, we reviewed the Auditor General’s report which raised several issues regarding the Nigerian Customs Service, and we had a close relationship with the Comptroller General.

“What is important is that we use those processes not only to identify problems but to improve the system. I must say that in the last three years, the Nigerian Customs Service has distinguished itself as a service that is reform-minded and open to innovation, and this is very commendable,” he said.

He further linked the AI ​​initiative to Nigeria’s fiscal realities, describing it as strategic and timely.

“As a country, we have spent a national budget running into trillions of naira, and those funds have to come from somewhere. One of the key agencies we rely on is the Nigerian Customs Service. While the Service has performed well in previous years, what we do now will ensure even better performance in the years to come.

“Artificial intelligence is no longer something new; it is already transforming various sectors globally, from healthcare to logistics. In some regions of the world, AI is being used to diagnose diseases and extend life expectancy, while in other regions AI is being used to improve operational efficiency and reduce losses. Making it a reality in Customs operations is long overdue, and there is no better time than now. However, we must also understand that AI is a tool created by humans, and its effectiveness depends on the commitment of those who use it.

“Training is important, but discipline, dedication and accountability will ultimately determine whether we achieve the desired results in blocking leaks and increasing transparency,” he added.

Earlier, the Deputy Comptroller General in charge of Finance, Administration and Technical Services, Kikelomo Adeola, described the training as an important milestone in the Service’s reform agenda.

“This training marks a significant step in our collective journey towards strengthening transparency, efficiency and accountability in public revenue management. The Nigerian Customs Service has always played a critical role in generating revenue for the country, but as global trade becomes increasingly complex, we must leverage innovative technology.

“AI

“The presence of our oversight committee and key fiscal institutions here today underscores our shared commitment to ensuring that every naira that comes into the Federation Account is properly accounted for,” he said.

Representative of the Revenue Mobilization and Fiscal Allocation Commission, Ibrahim Mambo, also praised the initiative, describing it as important for strengthening fiscal governance.

“This initiative is timely and important as artificial intelligence continues to improve efficiency, transparency and decision-making in the public service. We commend the Nigerian Customs Service for taking this step and bringing together important stakeholders in revenue oversight and fiscal governance.

“As a Commission, we remain committed to driving innovation, capacity development and improved fiscal governance. We encourage participants to take full advantage of this training and ensure that the knowledge gained is translated into practical improvements in our revenue systems,” he said.

The push towards AI adoption comes amid increasing pressure on revenue-generating institutions to improve collections and address leakages, as Nigeria grapples with a rising fiscal deficit and rising budget demands.

Observers say that if implemented effectively, the integration of artificial intelligence into Customs operations could significantly strengthen non-oil revenue performance and increase confidence in the country’s public financial management system.

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