CUSTOMS DEPLOYS AI TO STRENGTHEN REVENUE COLLECTION, REMITTANCES

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By: Balogun Ibrahim

The Nigeria Customs Service on Monday unveiled an ambitious plan to deploy artificial intelligence to boost revenue collection, enhance remittances, and minimise audit issues.

At the same time, the agency strengthened its engagement with lawmakers and fiscal authorities, signalling a shift in its long-standing oversight relationship with the National Assembly.

Speaking at the opening of a three-day training on AI-driven revenue generation, remittance, and reconciliation in Abuja, Comptroller-General Adewale Adeniyi said the Service was transitioning from a reactive approach—responding to legislative summons—to a more proactive and collaborative partnership with oversight bodies.

He noted that while past interactions with lawmakers were largely shaped by summons, the new direction is based on cooperation and shared responsibility.

Adeniyi explained that in a presidential system, oversight powers rest with the legislature and are exercised through committees such as the Public Accounts Committee. Traditionally, Customs had been required to respond to inquiries about its revenue and operations.

He stressed, however, that whether through summons or invitations, the ultimate aim remains ensuring transparency and enforcing fiscal discipline. According to him, the Service is now reversing the narrative by inviting lawmakers to engage directly, an initiative that has been met with strong support.

He added that the introduction of artificial intelligence would significantly enhance Customs operations by improving the management of complex trade systems, detecting irregularities, and plugging revenue leakages.

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Adeniyi noted that technology has already played a major role in Customs operations over the years, but AI would take efficiency further. He highlighted existing systems that analyse trade patterns and trends, as well as AI applications in goods classification and scanning technologies that help identify imported items more accurately.

He also pointed out that revenue generation and remittance involve multiple stakeholders, including banks, auditors, government agencies, and fiscal institutions. While Customs plays a key role, he urged all participants in the value chain to adopt similar innovations to maximise the benefits of AI.

Chairman of the House of Representatives Public Accounts Committee, Bamidele Salam, said the engagement reflects a more mature relationship between the legislature and revenue agencies. He clarified that parliamentary oversight is not meant to punish agencies but to strengthen governance and ensure compliance with the law.

Salam recalled previous audit queries involving Customs and noted that such issues have declined in recent years, describing the agency as increasingly reform-oriented and open to innovation.

He linked the AI initiative to Nigeria’s growing fiscal demands, noting that the country’s expanding budget requires stronger revenue performance. He described the training as both timely and strategic, adding that while AI is a powerful tool, its success depends on discipline, accountability, and commitment from those using it.

Earlier, Deputy Comptroller-General in charge of Finance, Administration and Technical Services, Kikelomo Adeola, described the training as a major step in the Service’s reform efforts. She said AI would transform public revenue management by improving efficiency, transparency, and accountability.

Adeola explained that the initiative aims to equip officers and stakeholders with tools to address persistent gaps in revenue processes, including leakages and reconciliation challenges.

Also speaking, Hajiya Ibrahim Mambo of the Revenue Mobilisation Allocation and Fiscal Commission praised the initiative, describing it as timely and essential for strengthening fiscal governance. She noted that AI adoption would enhance transparency and support better decision-making across public institutions.

The push to adopt AI comes as pressure mounts on revenue-generating agencies to increase collections and block leakages amid rising fiscal deficits and growing budgetary needs.

In recent years, Customs has introduced several digital reforms, including automated cargo clearance and improved risk management systems. However, concerns around revenue reconciliation have continued to draw scrutiny from the National Assembly.

The shift toward a more collaborative oversight framework is expected to ease tensions between regulators and operators while improving compliance and efficiency in public revenue management.

If successfully implemented, the adoption of AI in Customs operations could significantly boost Nigeria’s non-oil revenue and strengthen confidence in public financial systems.

The three-day training is expected to build institutional capacity within the Service and foster stronger collaboration among key stakeholders as the government intensifies efforts to improve fiscal discipline and increase non-oil revenue.

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