Customs automates excise duties with new digital register

Tax

The Nigeria Customs Service (NCS) has commenced live operations of its Automated Excise Register System (ERS), a major digital reform designed to overhaul excise duty administration, enhance transparency, and boost government revenue.

The system, which went live after months of testing, is now fully operational at three strategically selected factories: British American Tobacco Nigeria (BATN) Plc in Oyo State, International Tobacco Company (ITC) Limited in Kwara State, and Leaf Tobacco & Commodities Nigeria Ltd in Kaduna State.

According to the Service, the pilot phase—conducted between July and August 2025—was deliberately anchored in these facilities due to their size and strategic importance to Nigeria’s excise sector.

A statement issued by the National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada, highlighted the milestones achieved during the pilot phase, including a 75 percent efficiency score at BATN, seamless integration of production and reporting systems, and improved collaboration between Customs and factory management teams.

“Notable achievements from the pilot phase included the attainment of a 75% efficiency score during UAT at BATN, the successful integration of production and reporting systems across the factories, and strengthened collaboration between NCS and factory management teams,” Maiwada noted.

With the full activation of the ERS, all excise-related transactions at the pilot factories—including recording production volumes, computing excise duties, and generating statutory reports—will now be processed exclusively through the platform.

The reform is expected to eliminate manual documentation, curb inconsistencies in data reporting, and deliver greater accountability across the excise value chain.

Customs described the initiative as a “crucial step towards building a more accountable and technology-driven excise administration framework” under its ongoing Trade Modernisation Project.

The Service emphasized that insights from the pilot phase will serve as a blueprint for a nationwide rollout. Future phases will extend the ERS to cover other excise-regulated industries, including beverages, spirits, and additional segments of the manufacturing sector.

The NCS also called for the cooperation of stakeholders, stressing that their support and feedback will be critical in ensuring the long-term success of the reform.

“The Service calls on industry operators and stakeholders to embrace this noble reform and provide constructive feedback as the system is expanded nationwide,” Maiwada stated. “The Service also seeks stakeholders’ support in building a more robust and transparent excise regime that fosters compliance, enhances operational efficiency, and guarantees sustainable revenue growth for the Federal Government.”

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