Nigeria Customs Service Launches Automated System to Digitize Excise Revenue Collection

The Nigeria Customs Service (NCS) has initiated the rollout of an Automated Excise Register System (ERS), a significant technological advancement designed to modernize the administration and collection of excise duties.

The deployment follows a successful two-month pilot program conducted from July to August at the British American Tobacco Nigeria (BATN) facility in Oyo State. According to NCS spokesperson Abdullahi Maiwada, the pilot phase, which encompassed user acceptance testing, system validation, and comprehensive training, achieved a 75 percent operational efficiency rating.

With the system now live, the ERS has been installed at three major manufacturing sites: BATN in Oyo, the International Tobacco Company (ITC) in Kwara, and Leaf Tobacco & Commodities Nigeria Limited in Kaduna. These facilities were selected for their significant role in the national excise sector and their capacity to facilitate a broader implementation.

The automated platform seamlessly integrates factory production data directly with Customs systems, enabling real-time monitoring of manufacturing output. This integration is expected to significantly enhance transparency, minimize revenue leakage, and improve industry compliance.

“This initiative is a cornerstone of our broader digital transformation agenda,” Maiwada stated. “It is designed to align Nigeria’s excise operations with international best practices and foster a more collaborative relationship with manufacturers.”

The NCS confirmed that plans are underway for a nationwide implementation, with the objective of extending the system to all excise factories in the near future.

This move is anticipated to provide a substantial boost to government revenue. Excise duties, applied to goods such as tobacco, alcohol, and carbonated drinks, represent a critical revenue stream as Nigeria continues its efforts to diversify its economy away from crude oil dependence.