Nigeria’s excise regime has entered a new digital phase as the Nigeria Customs Service (NCS) migrates all excise-related transactions at three pilot factories onto its newly launched Automated Excise Register System (ERS).
Excise reporting in Nigeria requires manufacturers or importers of regulated goods such as alcohol, tobacco, and sugary drinks to declare production volumes to the Federal Inland Revenue Service (FIRS) and pay applicable duties. The process, often described as a production tax, ensures government revenue is collected at source, with costs typically reflected in retail prices.
Until now, much of the reporting was handled manually—a system critics say created room for delays, inconsistencies, and revenue leakages. NCS says the new ERS platform is designed to address these gaps.
The pilot phase, conducted between July and August 2025, laid the groundwork for the digital shift. NCS says it recorded “a 75% efficiency score during UAT at BATN, successful integration of production and reporting systems across the factories, and strengthened collaboration between NCS and factory management teams.”
Nigeria Customs: Technology rollout to enhance excise value chain
With live operations underway, production figures, duty computations, and statutory reporting at British American Tobacco Nigeria (BATN) in Oyo State, International Tobacco Company (ITC) in Kwara State, and Leaf Tobacco & Commodities in Kaduna State will now be handled exclusively through the ERS.
According to the Service, “the adoption of the platform is expected to drastically reduce reliance on manual documentation, eliminate inconsistencies in data reporting, and enhance transparency across the excise value chain.”
The pilot phase, conducted between July and August 2025, laid the groundwork for the digital shift. NCS says it recorded “a 75% efficiency score during UAT at BATN, successful integration of production and reporting systems across the factories, and strengthened collaboration between NCS and factory management teams.”
The agency describes the ERS as “a crucial step towards building a more accountable and technology-driven excise administration framework,” adding that lessons from the pilot will guide a nationwide rollout. The platform is expected to eventually extend to other excise-regulated industries, including beverages, spirits, and wider segments of the manufacturing sector.
Calling for collaboration, NCS urged operators and stakeholders to embrace the reform and provide feedback as the system expands nationwide. The Service says it seeks industry 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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