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Customs

Farinto calls for removal of Finance Minister —-says she lacks capacity to control Customs.

Eyewitness reporter
Kayode Farinto, the National Vice- President of the Association of Nigerian Licensed Customs Agents (ANLCA) has accused the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, of gross underperformance and lack of capacity to provide effective leadership to drive the economy.
Farinto, who is the Managing Director of Wealthy Honey Investment, lamented that the gap in the leadership of the Minister has led to the unrestrained impunity in the Nigeria Customs service which he accused of killing trade in Nigeria.
He, therefore, called for the replacement of the Minister with a technocrat who is well versed in fiscal economic policies and has the capacity to give effective leadership to the customs authority.
“We need to rejuvenate the Federal Ministry of Finance by appointing another technocrat to move our economy forward and we need an Honorable Minister of Finance that will be able to supervise and direct the new management team of Nigeria customs service to be reconstituted.
“The first panacea to revamp our economy is to appoint a vibrant and versatile economist as Honorable Minister of Finance because the present one lacks the ability to move our economy forward at post covid – 19 pandemic”  Farinto declared.
 He lamented that the timid nature and lack of capacity of the present Minister has created a demagogue in the customs who runs the Service with arrogant impunity without recourse to the supervising Minister.
Farinto, who was speaking in his office Friday, bemoaned the lack of professionalism in the Nigeria Customs service which he said has led to the gradual erosion of the legacy of late Abdullahi Dikko, whom he said enthroned the culture of professionalism during his tenure as the CGC.
The ANLCA chieftain claimed that the rating of the Nigeria Customs has nosed- dived under the current leadership which he accused of desecrating the trade facilitation role of the customs in its inordinate pursuit of revenue generation.

Zainab Ahmed, Minister of Finance

Farinto, while enumerating the numerous infractions under the current leadership of the service, blamed what he called the laid-back attitude of the supervising Minister whose words, he claimed, are not respected by the CGC.
He observed that as the supervising Minister and the chairman of the Customs’ Board, Mrs Zainab Ahmed does not exert the requisite authority on the Customs’management led by Col(rtd) Hameed Ali.
The customs broker lamented that this lack of control has led to the free, unchecked, and unrestrained reign of operational impunities in the customs.
“The economy of the country is sliding to abysmal level courtesy of NCS refusal to go professional. The issue of trade facilitation has been jettisoned while importers are continually being arm twisted to pay arbitrary demand notices on imported goods” Farinto noted.
“We are bleeding and this issue has gotten to a level that younger agents may resort to self-help should this extortion by Nigeria customs officers continue.
“The recent media seizures by the Nigeria customs service needs to be investigated. We now have what is called “Audio Seizures”, since they know the CGC is ignorant, you find some Comptollers calling press conferences for Audio Seizures, i.e seizures that never existed or repeating some seizure already shown to be public few years/ months back.
” This is not only uncustoms but a disservice to the nation which requires a  probe panel.
“The Federal Ministry of Finance is shirking in its responsibility.
“The Honorable Minister of Finance has shirked her responsibility and has completely failed Nigerians. We have put up letters on several occasions to demand clarifications on certain issues as regard import guidelines and on these occasions, the ministry has failed to respond and where she does, is unable to put NCS on her toes to abide by extant laws, directives,

Hameed Ali, CGC

or policies of the Federal Government.”

Farinto however advised the government to immediately reverse the current dangerous trend in the customs by appointing a thoroughbred customs officer to head the Service which he said is presently bedeviled with uncustoms practices.

“The Federal Government must assist the economy if Nigeria will not be doomed economically, by appointing from the crop of intelligent young Comptrollers that will move the economy forward and not amongst these ones that have not only eaten the forbidden fruits but infected by the current leadership in power”

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Customs

Customs buckles as it suspends implementation of 4 per cent FOB charge

Funso OLOJO 
In a manner demonstrative of a listening administration,the management of the Nigeria Customs service has suspended the implementation of the controversial 4 per cent Free on Board(FOB) charge on imports.
The suspension followed the outcry that greeted the implementation of the novel charge which importers and their agents said was jumped on them by the customs without notice nor consultation.
To allow enough time for stakeholders’ consultation and sensitization, the Customs said the suspension was sequel to the ongoing discussion with the Minister of Finance, Mr Adewale Edun.
In a press statement by the Customs management , the service disclosed that the timing of the suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
” The Nigeria Customs Service (NCS) hereby announces the suspension of the
implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023.
“This is sequel to ongoing
consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders.
“This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
“This presents an opportunity to
review our revenue framework holistically.
“Under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs
modernisation efforts.
“The new Act addresses these
challenges by consolidating “not less than 4% of the Free-on-Board value of
imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives.
“This transition period will allow the Service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.
“The Act further empowers the Service to modernise its operations through
various technological innovations.
“Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.
“The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency.
“Other innovative solutions authorised
by the Act include; Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3)).
“The suspension period will allow the Service to further engage with
stakeholders while ensuring proper alignment with the Act’s provisions for
sustainable funding of these modernisation initiatives.
 “The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate.
“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations” the service promised.
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Customs

We feel your pains — Customs seeks support of stakeholders over introduction of 4 percent levy on customs operations

Funso OLOJO
Nigeria Customs service has explained the rationale behind the introduction of the 4 percent  levy on the value of imported goods which has now become a subject of controversy among the freight forwarders.
The levy, which is the 4 percent Free on Board (FOB) of imported goods, was introduced into the assessment notice of a cargo declarant.
This has caused an outrage among stakeholders, especially the freight forwarders who have vowed to resist it.
However, in its official reaction to the new fee, the Customs management sought the understanding of the agitated stakeholders, acknowledging their importance relevance and invaluable contributions to the emergence of the new Customs Act.
Explaining the rationale behind the new fee, the Customs said this was in line with the provisions of the Customs Act of 2023.
“The Nigeria Customs Service (NCS) proudly recognises the invaluable
contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023.
“This landmark legislation, which replaces the long-standing
Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is
implementing a 4% charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service”
The customs also acknowledged the  concerns raised by stakeholders over the
sustained collection of 1 pet cent Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection
Scheme) alongside the 4% FOB charge.
“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders” the service pledged
 “Under the leadership of the Comptroller General of Customs, Bashir Adewale
Adeniyi, the NCS reaffirms its commitment to transparency, fair
trade practices, and efficient revenue management.
“All stakeholders are urged to
support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies, the service concluded.
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Customs

ANLCA divided over increment in CISS fee

Funso OLOJO 

There seems to be a discordant tune from the umbrella body of the freight forwarders in Nigeria, the Association of Nigerian Licensed Customs Agents(ANLCA) over the increment of the Comprehensive Import Supervision Scheme(CISS).
It would be recalled that the Customs brokers woke up on Tuesday, February 4th, 2025 to discover that the CISS fee, which used to be 1 per cent of the value of Import has been jerked up to 4 per cent.
The increment,which they claimed was slammed on them without a prior notice, has therefore sparked off heightened tension among the agitated freight forwarders who were said to be calling for a showdown with the customs.
While some of them were hinting at possible shut down of the Port to give vent to their anger and frustration, the National President of ANLCA, Mr Emenike Nwokeoji, has backed the decision of the Customs to increase the CISS fee.
Apparently scolding those who are allegedly “spoiling for war” with the Customs for their lack of knowledge of Customs law, Emenike said the Customs acted within the 2024 Customs Act to make the increment.
“I am not aware that ANLCA is protesting over the increment of the CISS from one per cent to four per cent.
“What I am aware of is that the ANLCA NECOM is meeting to take a decision on the increment.

“I, however, know that the increment is backed by the Nigeria Customs Service Act 2023. The increment is in the Act. That is where they brought it from” Emenike declared.

He however expressed his disappointment over the manner the customs jumped the increment on Customs brokers.
“They( Customs )should have, however, held sensitisation meetings to ensure all stakeholders are well aware.

“The increment started today. NECOM will be meeting very soon to take a stance on the new development.”, the ANLCA high Chief stated.

His stance on the issue contradicted the position of Alhaji Mukaila Abdullaziz, the former Sole Administrator of ANLCA who believed the increment by the customs may spark off an outrage among freight forwarders.
Also, Segun Oduntan, the Vice President of ANLCA holds contrary view with his principal, Mr Emenike when he allegedly issued 24 – hour ultimatum to the Customs to reverse the increase or get prepared to contend with the wrath of the irate customs brokers.
“We noticed the NCS has introduced 4% and renamed it Customs Operation Finance as appeared on this assessment.
“The Customs CG needs to call for an emergency meeting within 48 hours to address this development because it is already causing uproar in the freight forwarding system.

“All the freight forwarding associations would have to come together on this matter” Oduntan thundered .

Kayode Farinto, the former Acting National President of ANLCA however advised freight forwarders not to pay the increased tariff, asking the Customs authority to give the Customs brokers 90- day window through which the trading public will be adequately sensitized about the new fee
Meanwhile, the customs authority has said it would respond to the development as soon as possible in order to douse the gathering tension.
The CISS is a regulatory fee charged by Customs on all imported goods into Nigeria.
The fee, which used to be 1 per cent of the FOB (Free on Board) value of the shipment, has now been adjusted to 4 per cent, according to Section 18 of the Nigeria Customs Service Act 2023.
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