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Customs

Amidst cargo drought, Apapa customs generates N1.023 trillion in six months.

Olomu attributes feat to blockage in revenue leakages, dedicated officers.
Funso Olojo 
In what appears to be an ironic scenario.  the Apapa command of the Nigeria Customs Service has generated a whooping sum of N1,023,663,842,255.63 within the first six months of the year 2024 amidst dwindling cargo throughput.
Disclosing this during a press conference on Monday, July 8th, 2024, the Area Controller of the Command, Comptroller Babatunde Olomu, said the revenue figure was 143 percent above the figure of N421.382 billion realised in the corresponding period in 2023.
According to Comptroller Olomu, the revenue feat was achieved through dogged efforts and determination of his officers and the command’s intentional measures to block all identifiable revenue leakages.
However, the half-year revenue figures recorded by the command were made during a sharp drop in imports which stakeholders said stood logic on its head and feared that trade facilitation may have been sacrificed on the altar of revenue generation.
But Comptroller Olomu dispelled such fears, saying Apapa command was passionate about trade facilitation.
“Since assuming office on May 6, 2024, the thrust of my leadership has been intelligence gathering for enhanced revenue collection backed with deliberately improved customs-community relations.
“I am pleased to report that our efforts at promoting trade facilitation are yielding good results with attendant ease of doing business, prevention of revenue losses, and closer interactions with sister government agencies and private sector stakeholders, including members of the host communities in which we operate.
“We are also not leaving anything to chance for economic saboteurs as our nonintrusive inspection (NII) regime is fully in place where scanners are deployed for cargo examination with support of physical examination where and when necessary” Olomu declared.
In the same breath, the command made seizures of 11 containers comprising of prohibited items such as expired and unregistered pharmaceuticals, footwear, used clothing, armored cables, and frozen poultry products.
The seized items have a Duty Paid Value of N424,105,975.00 as against 42 seizures with a DPV of N1.4 billion made in the corresponding period in 2023.
” It is pertinent to mention that just last week, we uncovered a large quantity of expired and unregistered pharmaceuticals in 3x40ft container numbers TCKU 6928184, MRKU 4422733, MRSU 5550243, and another 3x40ft container nos. MNBU 3934925, MEDU 9107559 and MEDU 9752980 are loaded with seven thousand five hundred and eighty (7,580) cartons of frozen poultry products unfit for human consumption, which is against schedule 3 of the revised import prohibition list of the Common External Tariff (CET).
“These importations violate section 233 of the Nigeria Customs Service Act 2023.
” Let me state that the harmful effects of fake and unregistered pharmaceutical products on citizens are unquantifiable and as a responsible service, we owe Nigerians the duty of preventing them from being exposed to this dangerous importation.
” I want to use this opportunity to sound a note of warning to perpetrators of smuggling, duty evasion and other forms of criminality frowned upon by the Nigeria Customs Service Act 2023 and other extant laws, that Apapa command Is poised to nip illicit importation In the bud.
“Consequently, in line with the CGC’s zero tolerance for smuggling, I have reformed the command way of treating transires by ensuring more meticulous management of cargoes moving from the mother port to bonded terminals.
“This has become necessary to prevent a situation where smugglers attempt to perpetuate illegalities in bonded terminals.
“To sustain this tempo, no cargo is allowed to exit from our control without thorough inspection using the scanner.
“We shall not compromise on this as we will keep making seizures, detention and arrests where necessary to protect the national economy and prevent Nigerians from exposure to dangerous or unwholesome products like illicit drugs, Comptroller Olomu stated.
Olomu expressed his appreciation to Adewale Adeniyi, the Comptroller General of the service and his management team for their support which he said provided the much-needed tonic that propelled the command to record such a milestone in revenue collection.
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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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