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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

Customs grants one- month extended window to illegally imported private aircraft owners to regularise their documents to avoid sanction 

Funso OLOJO
The Nigeria Customs Service has given a month extension for owners of illegally imported aircraft to come forward to pay necessary charges and regularise their documents.
The grace period, which is from Monday, October 14th, 2024 to Thursday, November 14th, 2024, is to enable the affected owners to complete the verification exercise for the recovery of import duties which they had earlier evaded.
According to the statement by the Service, “the extension is to further engage operators who have expressed willingness to regularize their import duties, providing them with an additional window to comply with the necessary regulations.
 “The NCS is committed to ensuring that all illegally imported aircraft meet the legal requirements, thereby promoting transparency and accountability in the aviation sector.
“In light of this extension, the NCS encourages aircraft operators to take full advantage of the extended period to fulfill their obligations, avoiding sanctions that may arise from non-compliance after the deadline.
 “The Comptroller General of Customs, Bashir Adewale Adeniyi  reiterates the Service’s dedication to enforcing the laws governing import duties and maintaining the integrity of Nigeria’s aviation sector.
 “He further appreciates the cooperation and understanding of stakeholders in this ongoing exercise” the statement concluded.
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Customs

AfCFTA scribe commends Nigeria Customs over deployment of trade facilitation tools for efficient service delivery

— engages CGC Adeniyi on how to dismantle bottlenecks in intra-African trade.
Funso OLOJO 
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene had commended the Nigeria Customs Service on the deployment of the Authorized Economic Operator (AEO) programme, the Advanced Rulings, and the conduct of Time Release studies which he said have greatly improved trade facilitation at the Nigerian ports and border posts.
According to him, these initiatives have positioned the NCS as a benchmark for customs administrations across Africa.
Wamkele Mene gave this commendation while meeting the Comptroller General of the Nigeria Customs Service, Adewale Adeniyi on the sideline of the Biashara Afrika 2024 forum, hosted in Kigali, Rwanda, from 9th to 11th October 2024.
The Rwanda engagement brought together key stakeholders to discuss ways to enhance intra-African trade and foster deeper economic integration.
The meeting between the CGC and the Secretary-General provided a unique opportunity to refine strategies aimed at improving trade facilitation under the AfCFTA agreement.
 Discussions centered on addressing existing bottlenecks and encouraging small and medium-sized enterprises (SMEs) to take advantage of the opportunities provided by the agreement, given their critical role in boosting intra-African trade.
 Particular emphasis was placed on the role of Customs in these efforts.
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 In his response, Comptroller-General Adeniyi commended the Secretary-General for his unwavering commitment to advancing the AfCFTA’s goals, despite the resource constraints faced by the Secretariat.
 He also acknowledged the critical support provided by President Bola Ahmed Tinubu’s administration and the legislative arm through the Nigeria Customs Service Act 2023.
 “The Act has been instrumental in providing the necessary legal framework for implementing initiatives that align with the government’s vision of making Nigeria the most efficient trading nation on the continent, fostering SME growth, and boosting exports to strengthen intra-African trade,” he said.

The high point of the conversation was the recent achievement of Mrs Chinwe Ezenwa, CEO of LE LOOK Nigeria Limited, who became the first woman to export goods under the Guided Trade Initiative (GTI) of the AfCFTA to East, Central, and North African countries.

 Her success, marked by the export of goods on 16th July 2024 from Apapa Port in Lagos, underscores the growing opportunities for Nigerian businesses in the continental market.

A key outcome of the meeting was the AfCFTA Secretariat’s commitment to develop a concept note outlining the way forward for the free trade area.

 In turn, the NCS pledged to bring these discussions to the Heads of Customs Administrations platform in Africa, ensuring a coordinated approach to addressing customs-related challenges across the continent.

The Biashara Afrika, now in its second edition, has established itself as a formidable platform for engagement between African public and private actors on the effective implementation of the AfCFTA.

 This year’s forum focused on addressing the evolving challenges in the business environment and seeking innovative solutions to facilitate cross-border trade.

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Customs

Stakeholders accuse Finance Ministry of frustrating government’s six-month duty waiver on food imports

–as December deadline beckons, hungry Nigerians eagerly await dividends of  presidential initiative
Funso OLOJO
Nigerian importers and their agents have accused the Federal Ministry of Finance of deliberate efforts to frustrate the government’s initiative at encouraging massive importation of food items to cushion the country’s current food crisis.
Following the acute shortage of food items due to debilitating insecurity, which has driven the cost of foodstuffs through the roof, the federal government announced a six-month window of zero duty and VAT on the importation of some critical foodstuffs to provide an immediate solution to the widening gap in the food supply.
Consequently, the government announced, through the Federal Ministry of Finance, an executive order that effective from 15th July 2024 to  31st December 2024, there is a six-month window of duty waivers on the importation of some selected food items such as husked brown rice, beans, wheat, millet, maize and grain sorghum.
However, three months into the special offer, no single importation of the selected food items has been made.
Kayode Farinto, the Chairman and Chief Executive officer of Wealthy Honey Nigeria Limited pointedly accused the Finance ministry of putting a wedge in the implementation of the policy.
Farinto, a former Acting National President of the Association of Nigerian Licensed Customs Agents(ANLCA), said the stringent conditions attached to importation under the special Presidential duty waivers were the killjoy that has scared importers away from participating in the programme.
He expressed dismay on why the ministry should place such a burden on the importers who wish to help the government achieve food sufficiency in the country if not to deliberately frustrate and sabotage the process.
” Government in its magnanimity realised that Nigerians are hungry and should have food in excess, rolled out that very good executive decision on duty waivers on some selected food items.
” But its implementation has been bastardised and I predicted when the announcement on this special arrangement was made that after three months of the executive order, there won’t be any importation of these food items under this programme.
” Three months into the programme, there is no importation.
” Go to the port terminals, you won’t find a single containerised food item under the duty waivers programme.
” Nobody is willing to import under such stringent conditions by the Ministry of Finance. The ministry has put a wedge in the smooth implementation of the policy.
” Most of us travelled abroad and saw these food items which we would have containerised and shipped to Nigeria under this programme but we couldn’t because of the stringent criteria set up by the ministry.
” How do you expect people to import food items and have a food surplus in the country when you put these tough conditions?” Farinto queried.
It could be recalled that the Ministry of Finance through the Nigeria Customs Service in August 2024  spelt out certain conditions to be met by importers willing to participate in the special Presidential duty waivers programme.
“To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years.
“It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
” Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years and have enough farmland for cultivation.
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation”
Farinto said these conditions were not necessary as they would certainly be too cumbersome to meet.
” It should have been left open for those who have interest and capital to participate, a sort of all-comers affair to encourage massive importation of foods to saturate the market and bring the prices down.
“After all, the window is only for six months and after that, you close the window” the ANLCA chieftain declared.
Our reporter further gathered that apart from the stringent conditions attached to the zero duty programme which stakeholders believed have resulted in apathy, the Nigeria Customs Service, three months into the implementation of the duty waivers, said it was still waiting for the Federal Ministry of Finance to provide the agency with the list of importers eligible to participate in the programme.
According to the guidelines, the Federal Ministry of Finance is supposed to provide the Customs with the list of importers qualified to benefit from the duty waiver.
With three months remaining before the duty waiver window is shut, hungry Nigerians are still waiting to benefit from the massive importation of food items expected from the special Presidential duty waiver programme.
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