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Customs

Editorial! The incursion of Chinese into Nigeria’s revenue vault. 

Chinese company, Huawei Technologies

The ubiquitous Chinese is gradually getting a foothold in the nation’s economy.

Apart, from giving a huge financial lifeline in form of loans to Nigeria, the Chinese are the ones building the country’s railways, among several other critical infrastructural projects they are involved in across the country.
The latest catch of the Asian country is the Nigeria Customs Service, the cash cow of the Federal Government.

On May 30th, 2022,  the controversial concession of the Nigeria Customs Service was consummated at the national headquarters of the service in Abuja.

Despite the outcry of stakeholders against the concession of the operations of the Nigeria Customs Service, the Federal Government signed a tripartite concession agreement with a Chinese company, Huawei Technologies, and their Nigerian counterparts, Trade Modernisation Project Limited with Africa Finance Corporation as the lead financiers.

The agreement was facilitated and midwifed by the Infrastructure Concession Regulatory Commission(ICRC).

The concessionaires, under the agreement, will drive the modernisation project for 20 years.

The concessionaires are expected to invest the sum of $3.2 billion dollars with an estimated income of $176 billion generated for the Federal Government in 20 years.

Last Monday’s  consummation of the concession agreement was preceded by the approval granted by the Federal Government in September 2020 to concede the operations of the customs to concessionaires

The concession agreement, which spans a period of 20 years, will involve the modernisation of the processes and procedures of the Nigeria Customs Service, including its revenue generation which the concessionaires will take over through which they are to recoup their $3.2 billion investments.

Expectedly, the decision of the Federal government, which was clinically executed in the mould of a coup d’é tat, caught many industry stakeholders pants down.

It also generated animated discussion as the approval and eventual concession was granted in defiance to the popular wish of the operators.

Since 2019, when the industry got wind of this concession deal before the 2020 approval, there has been concerted opposition mounted by the aghast operators who felt the move was an attempt to give away our common patrimony to the foreign interests.

Then,   Hon. Jerry Alagbaso, a former Customs chief and erstwhile member of the House of Representatives, rallied the National Assembly against the move.

But to the chagrin of everyone, the Federal government pulled a fast one on all the antagonists of the project.

We are less disconcerted over this concession deal which we believe was willing away the nation’s cash cow for 20 years to the foreign imperialists and their local collaborators.

We are at a loss on which powerful forces could have forced the hands of the Federal government to enter into this type of deal against the popular counsel of knowledgeable stakeholders.

Modernisation of Customs, they said.

What is there to modernise in the processes and procedures of the Nigeria Customs Service?

At the risk of being controverted, we dare say the Nigeria Customs has the most advanced form of automation process among the government agencies in the industry and one of the most automated in Africa.

The Secretary-General of the African Continental Free Trade Area (AfCFTA),  Wamkele Mene said as much when he visited Apapa Customs command last week.

Mr. Mene said Nigeria Customs has the most advanced and comprehensive automation programme among its peers in Africa.

The only challenge which the service has is human.

Some of the men and officers of the service are clearly aversed to full automation due to their selfish and pecuniary interests.

The automation process will eliminate human contacts which is the avenue for extortion and exploitation.

Since 2003, Nigeria Customs has gone through a series of automation processes that have made its processes and procedures seamless.

The Automated System for Customs Data (ASYCUDA) and its advanced form of ASYCUDA+, ASYCUDA++, the Nigeria Customs Integrated System (NCIS1 &11), and Pre-Arrival Assessment Report (PAAR) are some of the automation platforms created by the customs management over the years to make customs operations seamless.

Even, in 2013,  the Service developed a web-based application to provide information and guidelines for international trade business processors, export and transit trade which is called Nigeria trade Portal which is interactive.

To our mind, what the service needs is to upgrade these automated platforms, and integrate them with other players in the cargo documentation and clearance chains under the neglected single window project.

With adequate capital outlay, we believe Nigeria Customs can achieve full automation status without the involvement of foreign economic imperialists, aided and abetted by their avaricious local collaborators.

The anti- automation officers, who are averred to technology due to their selfish interests, could be reformed.

If they are adamant, they could be shipped out.

Cargo scanning could be emphasised while physical examination of cargoes could be sparingly used.

With these and all other automation platforms well integrated into the single-window under the supervision of a willing Customs administration, the Nigeria Customs will be a world-class agency.

We are however least surprised at the tenacity of these economic vultures in their quest to lay hands on the Nigeria Customs Service, which is gradually emerging as the cash cow of the nation.

Apart from oil, maritime is the second-highest revenue earner for the country and Nigeria Customs plays a key role in this regard.

With the yearly earnings in the excess of a conservative estimate of trillions of naira and the capacity to do more, as well as the dwindling earnings from oil due to the global crisis in the oil market, the maritime industry nay Nigeria Customs is understandably the preferred bride for these economic speculators.

Various attempts have been made in the past to dip their hands in the Customs’ till without success.

The proposed invitation of Crown agents of London to take over the revenue generation of the customs as was muted by the then Minister of Finance but now the Director-General of World Trade Organization (WTO), Dr  Ngozi Okonjo Iweala, under Olusegun Obasanjo’s administration, was promptly shot down.

In 2011, the illegal concession of Customs key functions between the ministry of finance and a company called Single Window System and Technologies was shot down.

In 2017, another move for Customs modernisation was made by the technical committee on the Comprehensive Import Supervision Scheme(CISS) which was pretentiously acting on behalf of the Federal government, with a  technical partner called Adani system Nigeria limited.

The attempt, which sought to concession the Customs then for 25 years,  was frustrated.

However, in a blatant disregard for popular opinion, the Federal government, after several failed attempts,   eventually forced down the throat of the unwilling stakeholders, the concession of the agency.

However, the deeds have been done.

Any further lamentation by the stakeholders on the issue is crying over spilled milk.

Now that the government has had its way, we can only hope that its aspirations for the concession will be realised.

The Minister of Finance, Budget, and Planning, Zainab Ahmed, has said the government stands to realise $176 billion from the project without spending a Kobo.

The question is how much will the concessionaires realise within the 20- year period of the deal beyond the $3.2billion investments they are expected to sink into the project?

What would be the fate of the customs officers whose jobs will be affected by the take-over of the revenue functions of the agency?
Even though the Comptroller General of the service, Col. Hameed Ali, has allayed the fear of job loss, the redundancy of some categories of officers could not be totally ruled out.

It is instructive to note that one of the two core functions of the customs, which is revenue generation, has now been concessioned under the guise of this new modernisation project, leaving them with the anti-smuggling function.

We hope rather than render some crop of officers reductant which may lead to possible right-sizing of staff, they could be redeployed to beef up the anti-smuggling function of the service.

We are worried about the involvement of the Chinese in the project as represented by Huawei which serves as a technical partner.

The ubiquitous Chinese have gradually become a leech on Nigeria, sucking on the economy of the nation.

We can only hope that the modernisation project will leave the Nigeria Customs service better than it met it.

We equally hope the project will not be sabotaged by disgruntled insiders whose means of livelihood is being threatened.

The misadventure of the  Professional Import Duty Administrators (PIDA) between 1996 and 2000 in the Nigeria Customs Service is still poignant in the memory of those who were in the know.

At that period, a firm of an accounting/consultant was engaged as professional Import Duty Administrators to complement the Nigeria Customs Service in the task of revenue generation.

They left the service worst off than they met it.

We appeal to the Federal government to ensure that this project transforms the service into a technologically-driven agency whose operations are seamless and paperless.

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Customs

Tinubu celebrates Adeniyi on his 59th birthday

–lists his achievements 
Funso OLOJO
President Bola Ahmed Tinubu has joined millions of well wishers across the globe to celebrate Adewale Adeniyi, the Comptroller-General of Customs, Adewale Adeniyi as he turns 59 years on Sunday, January 19th, 2025.
In his birthday message made available through his Special Adviser on information and strategy, Bayo Onanuga, Tinubu lauded the innovative and inspiring leadership of Adeniyi which he noted has impacted greatly on the image and performance of the service.
While listing the achievements of the customs in terms of revenue generation, trade facilitation, automation and digitization of the service, anti- smuggling activities as well as bolstered staff morale under the dexterious guidance of Adeniyi, President Tinubu wished him  divine wisdom, robust health, and continued strength as he serves the nation.
“Under his guidance, the agency has witnessed significant progress through the steady digitalisation and automation of its operations, a renewed commitment to professionalism, and an uplift in officers’ morale, enhancing high performance.
“His leadership has enabled the NCS to surpass revenue targets substantially and bolstered trade facilitation, yielding widespread positive effects on the national economy.
“President Tinubu applauds the innovative anti-smuggling strategies initiated by the Customs Chief.
“These strategies encompass equipping the youth with new skills for alternative livelihood opportunities, fostering engagements with traditional institutions, and nurturing a culture of effective communication and mutual respect.
“The President recognises the Comptroller-General’s other notable achievements, including the remarkable seizures of arms and ammunition and the revitalisation of the Comptroller-General’s Annual Conference, which aims to assess and enhance the agency’s operations.
“President Tinubu affirms that Adeniyi’s extensive experience of over 30 years in service and adaptability to change has greatly enriched the Customs Service.
“The President offers prayers for divine wisdom, robust health, and continued strength for Comptroller-General Adeniyi as he serves the nation.
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Customs

Onyeka, Tin Can CAC, set to pursue revenue generation aggressively

vows to surpass 1 trillion naira revenue record 

Funso OLOJO
The Area Controller of the Tin Can island command of the Nigeria customs service, Comptroller Frank Onyeka, has set an ambitious goal of meeting and surpassing the one trillion naira revenue mark achieved last year by his predecessor, ACG Dera Nnadi.
It would be recalled that the command was given a revenue target of N1.4 trillion in 2024 while it realized a little about N1.226 trillion ,an unprecedented record that was never achieved in the history of the command.
Meanwhile, Comptroller Onyeka, has vowed to sustain the revenue momentum as he would aggressively pursue revenue collection.
Speaking while playing host to the Executive council of the Maritime Reporters Association of Nigeria(MARAN) which paid him a courtesy visit in his office on Friday, January 17th, 2025, the Customs chief disclosed his strategy to carry out his assignment.
According to him, he would facilitate legitimate trade, ensure 100 percent examination of all imports while he would energise his men and officers to key into his vision.
“I’ll facilitate trade, but it has to be legitimate trade. That’s what I feel I should do in the strict sense.
“You know, I’m coming from the aspect of revenue. So, it is my prayer and my hope to meet my target and surpass it.
“But principally, what I am going to fight is the ability to do this job without examination.
“I have appealed to my officers, whatever it is they have to do, let them see the containers, once we’ve examined them, everything should be on cruise control because if you examine, you’ll now know if it’s supposed to go out or not.
“I’ve involved Customs Intelligence Unit, CIU, I’ve involved Valuation Unit, I’ve spoken to all relevant Units and it’s my prayer, by the grace of God, that all of us will be on the same page to make sure that the renewed hope agenda of President Bola Ahmed Tinubu is brought to fruition” he noted.
He was full of gratitude to the Comptroller General of Customs, Bashir Adewale Adeniyi , for the confidence reposed in him and vowed never to disappoint him.
“I also appreciate the fact that our indefatigable Comptroller General Of Customs, CGC Bashir Adewale Adeniyi to whom I’m very grateful.
“He needs to be made to know that he didn’t make any mistake for him to have brought me here.
“I am very grateful to him and his management team, and I need to make him proud” he enthused.
Comptroller Onyeka also vowed to build on the foundation that has been laid by his predecessor, Assistant Comptroller General Dera Nnadi.
“In anti-smuggling, he did well. In revenue generation, he did superbly well, same goes for infrastructure development.
“His Public Relations was top-notch, which I’m going to leverage.
“He was fortunate to have what I consider a very fantastic rapport with the media because that’s his background. I intend to leverage that. I intend to do better in that aspect” he added.
Earlier, in his address, the President of MARAN, Mr Godfrey Bivbere expressed the willingness of the association to partner with the CAC and the Command to achieve the target ahead of the command.
He reiterated the firm resolution of the association to accord Comptroller Onyeka the same support accorded to his predecessor.
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Customs

Pressure mounts on Customs as National Assembly reviews N6.5 trillion 2025 revenue target to N12 trillion. 

– as the service closes 2024 with N6.105 trillion revenue collection 
Funso OLOJO 
The National Assembly seems to be stretching the capacity of the Nigeria customs service for revenue generation to the limit as it has given the service an unprecedented task of generating a whooping sum of N12 trillion in 2025 into the government coffers.
This amount doubles the N6.5 trillion earlier projected revenue target for the service in 2025.
Apparently cashing in on the blistering revenue- generating performance of the service which surpassed the N5.079 trillion  target of 2024 by 20.2 percent, the  laws makers made the adjustment to the initial set target for 2025.
The National Assembly’s joint committee on Finance led by its chairmen, Senator Sani Musa and Hon. James Faleke, believed that the projection of N6.5 trillion was conservative and encouraged the NCS to aim higher.
Their decision followed the opinions of members of the joint committee who argued that the customs, based on its past geometric rise in revenue collection over the years, has the capacity to generate more that the projected target for 2025.
“Based on the aggregate opinions expressed by members of this committee, the Comptroller-General of Customs should aim at generating N12 trillion revenue for Nigeria in 2025, almost doubling the N6.5 trillion proposed by Customs itself,” Senator Musa said.
The adjustments were made during budget and revenue projection defence sessions on Tuesday, where Chief Executives from various federal agencies presented their 2024 budgets and 2025 revenue forecasts.
Meanwhile, the Comptroller-General of the Customs, Adewale Adeniyi on Tuesday, January 14th, 2025 in Abuja, made a public presentation of the performance of the service in 2024.
 
At the public presentation, Adeniyi gave account of the impressive performance of the service in revenue generation, trade facilitation, anti – smuggling efforts and other capacity – enhancing programmes of the agency in 2024.
 
According to him, the service  collected₦6,105,315,543,489.50 in 2024
which surpassed the revenue target of ₦5,079,069,866,085.50 by ₦1,026,245,677,404.00, representing a 20.2% increase above the target.
Similarly, the service processed imports with a Cost, Insurance, and Freight (CIF) value of ₦60.29 trillion in 2024, representing a remarkable 117.4% increase from ₦27.74 trillion in 2023.
” This was achieved through 1,262,988 import transactions, handling a total mass of 15.35 billion kilograms.
“The higher value recorded despite an 8.2% decrease in transaction volume from the previous year’s 1,376,514 transactions indicates a shift towards higher-value goods in our import trade portfolio.”
Equally, the service recorded an impressive trade performance with the total CIF value rising significantly to ₦136.65 trillion in 2024 from ₦42.77 trillion in 2023, marking a 219.5% increase.
“While the number of export transactions remained relatively stable at 38,199 compared to 38,294 in 2023, we witnessed a substantial increase in export volume, processing 12.35 billion kilograms in 2024 compared to 3.70 billion kilograms in 2023.
“This 234% increase in export mass, coupled with the higher value, indicates a robust growth in our export trade and suggests increasing competitiveness of Nigerian products in the international market.
“The total trade value handled by the Service in 2024 amounted to ₦196.94 trillion, compared to ₦70.50 trillion in 2023, representing a 179.3% increase.
” This substantial growth in trade value, achieved with fewer but more valuable transactions, is evident of the increasing sophistication of Nigeria’s international trade and the effectiveness of our trade facilitation measures” the CGC declared.
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