Customs turns to AI to plug revenue gaps, strengthen oversight collaboration

The Nigeria Customs Service (NCS) has unveiled a sweeping plan to deploy artificial intelligence in a bid to boost revenue collection, enhance transparency, and curb persistent leakages in its operations.

The initiative was announced on Monday in Abuja during the opening of a three-day training programme focused on AI-driven revenue generation, remittance, and reconciliation. The move also signals a shift in the agency’s relationship with lawmakers, with a renewed emphasis on collaboration rather than confrontation.

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

Adeniyi said, “We all know that in a presidential system of government, the power to oversee the executive lies squarely with the parliament, and this is exercised through committees such as the Public Accounts Committee in both chambers. What we have been used to over the years are summons asking us to explain our revenue, our processes, and our operations.”

He stressed that regardless of whether engagements come through summons or invitations, the ultimate goal remains accountability and fiscal discipline.

“These summons are binding under the Constitution, and we have no option but to comply. Sometimes, if you are invited for a particular time and you arrive late, you may even be threatened with enforcement.

“But today, we are deliberately flipping that narrative. It is now the Customs that has invited the distinguished committees to engage with us, and we are glad that they responded enthusiastically.

“Whether it is by summons or by invitation, the objective remains the same, we are united in ensuring transparency in public accounts, achieving fiscal discipline, and bringing inefficiencies in revenue generation to account,” he said.

Adeniyi explained that AI would deepen existing technological systems within the Service, enabling better detection of anomalies in trade patterns and helping to plug loopholes in revenue processes.

“Over the last 20 years, technology has evolved and has played a very critical role in our operations. Today, we have risk management systems that help us manage the huge volume of trade that we handle, and through these systems, we are able to analyse patterns and trends in international trade.

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

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

“This is very important in blocking leakages and ensuring compliance. However, revenue generation, remittance, and reconciliation involve a long value chain that includes banks, platform providers, auditors, the Revenue Mobilisation Allocation and Fiscal Commission, the Federation Account Allocation Committee, and the National Assembly.

“We are only one part of that chain, and while we are taking this leap forward, we encourage other stakeholders to adopt similar innovations so that collectively we can maximise the benefits of AI,” he added.

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

He said, “Contrary to public perception, legislative oversight was not designed to witch-hunt agencies but to strengthen governance systems.

“Whenever we invite ministries, departments, or agencies, the default thinking is that parliament is on a fault-finding mission, that we are simply looking for errors in the books. But that is not correct. What we are truly interested in is the functionality of the Nigerian state and the degree of compliance with the laws that we have all agreed to abide by. ”

Salam recalled previous audit engagements with Customs, noting a decline in infractions and commending recent reforms.

“When I assumed office as chairman, we reviewed Auditor-General’s reports that raised several issues concerning the Nigeria Customs Service, and we had robust engagements with the Comptroller-General.

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

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

“As a country, we have passed a national budget running into trillions of naira, and the money must come from somewhere. One of the key agencies we rely on is the Nigeria Customs Service. While the Service has done well in previous years, what we are doing now will ensure even better performance in the years ahead.

“Artificial intelligence is no longer new; it is already transforming sectors globally, from healthcare to logistics. In some parts of the world, AI is used to diagnose diseases and extend life expectancy, while in others it is used to improve operational efficiency and reduce losses. Bringing this into 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.