Headlines

Nigeria’s tariff system is fraudulent – Prof. Badejo

Funso OLOJO

Professor Bamidele Badejo, the Chairman of the Lagos State Professorial Endowment on Transport and Logistics Studies, School of Transport and Logistics, Lagos State University (LASU), Ojo, has described Nigeria’s tariff system as fraudulent and fraught with corruption.

Badejo, who made this observation in his lecture at the 19th Transquest Anniversary/Transport Development Symposium and Awards ceremony in Lagos, claimed that the Nigerian government has no scientific application to justify the plethora of tariffs imposed on Nigerians, saying the tariff regime is done with a rule of thumb.

” If you don’t understand the concept of trade and don’t look at the intricacies of trade, how do you develop your tariff system?

“Most of the tariffs government generated, most of the tariffs we established are just done by mere by rule of thumb.

” There are no scientific applications to justify how these tariff rates were arrived at.

” Someone will just wake up and say, oh, doing shipping business is more expensive in Nigeria than any of the West African countries.

” There are no scientific analyses to back up such claim” the University don declared.

Badejo, who delivered a paper on the theme of the Symposium titled ” Harnessing Nigeria’s Trade Tariff System for Economic Growth: Curbing Influx of fraudulent imports through the Nigerian Ports” accused officials of revenue-collecting government agencies such as the Nigeria Customs Service, Federal Inland Revenue Service(FIRS) as arrogant and corrupt who like to play God.

The University don decried the chaotic state of Nigeria’s ports which he said are still enmeshed in corruption and lack of transparency in its operations.

He further said the government uses tariffs to achieve economic growth and political goals.

“Tariffs have historically been a tool for government to collect revenue.

” Also, they are a way for the government to try to protect domestic producers. Thereby using the tariff as a protectionist tool.

“Generally, applying tariffs increases the prices of imports. Tariffs are imposed by the government, no individual or organization can determine tariff rates or duties.

” In today’s global economy, many products bought by consumers have parts from other countries as a result, it can also affect products made in the home country.

“There is a huge conflict between economists and other disciplines, they argue that tariffs when imposed create market distortions that can actually harm domestic consumers over time.

“Tariffs could also be used for retaliation between countries because of their political differences.

” Nevertheless, the process of determining tariff rates involves a combination of economic, political, international and strategic considerations.

” Overall, governments impose tariffs based on what is needed to protect domestic industries, address trade imbalances, or respond to unfair trade practices.

“Tariffs, in addition, could be used as political tools to manage relationships.

“Tariff setting therefore involves complex negotiation and considerations of possible retaliation with trading partners.

“In other words, tariffs are used to restrict imports by increasing the price of goods and services purchased from another country by making them less attractive to domestic consumption.

The convener of the annual lecture, Felix Femi Kumuyi, the Publisher and Editor-in-chief of Transquest magazine, said the anniversary Transport Development Symposium and Lecture was the modest contribution of his organization to the economic growth of the country.

He lamented the hypocrisy of government agencies in supporting laudable workshops like the one his organization has packaged, accusing them of seeking to support the ones that will massage the ego of their paymasters

“It’s unfortunate that the level of participation and the seriousness these kinds of workshops should attract, especially from our government agencies/institutions, has not been forthcoming, other than politically motivated, organizational talk shops.

“Going forward, the theme of this year’s TransQuest Lecture/Award programme is Harnessing Nigeria’s Trade Tariff System for Economic Growth, which has been carefully chosen in the face of accusations and counter-accusations relating to tax and over-taxing of imports.

“Can we achieve a harmonious Trade Tariff System or Tax regime that is proportionate and in tandem with the prevailing realities?

”In the last one year, opinions on this matter have been as divided as it has been and seemingly straight jacketed; with government camp notorious for shying away from realistic appraisals and objective stakeholders engagements.

“Knowing that Tariffs are trade barriers that raise prices, reduce available quantities of goods and services for businesses and consumers, and can create an economic burden on foreign exporters, there should be a harmonious mechanism that the government and various industry players should adapt to, irrespective of the excuses of dollar to naira exchange rates which keeps the tariff system in perpetual fluctuation in past years,”

The event was attended by industry players such as the Nigeria Customs Service, NDLEA, freight forwarders, maritime lawyers and government agencies.

The occasion, which was also used to unveil the new edition of Transquest magazine, served as a platform where notable industry players such as the Executive Secretary of the Nigerian Shippers’ Council, Barrister Pius Akutah, Prince Olayiwola Shittu, who was represented as the chairman of the occasion, Mrs Jean Anishere and others, were celebrated with awards of excellence.

Customs

How NPA’ s ETO call- up system hampers seamless export processes at Lilypond Terminal — Customs

Funso OLOJO

The Customs Area Controller of the Lilypond Export Command, Comptroller Ajibola Odusanya, has attributed the persistent delay in export cargo movement at the command to logistics issues associated with the Nigerian Port Authority’s Eto call-up system, rather than any bottlenecks from the Nigeria Customs Service (NCS).

Eto call- up system is a structured movement of container- laden trucks into the terminals meant to decongest Port access road and facilitate quick goods clearance at the port.

It was developed by the NPA and driven by a private company.

However, Comptroller Odusanya, speaking at a Roundtable with members of Maritime Reporters Association of Nigeria (MARAN),emphasized that while the command has streamlined the export process, lack of available slots for trucks to enter the ports remains a major challenge.

He noted that despite the command’s efforts, numerous containers remain stranded at Lilypond due to the inability of trucks to secure clearance under the Eto system.

He explained that prior to the implementation of a centralized export processing system, multiple customs units across Apapa, Tin Can, PTML, and Lekki ports handled export documentation.

However, in July 2024, the government directed the full centralization of all export processes under the Lilypond Export Command.

This move, driven by the Presidential Enabling Business Environment Council (PEBEC) and backed by agencies such as the Nigerian Export Promotion Council (NEPC) and the Nigerian Ports Authority (NPA), was aimed at streamlining operations and reducing multiple checkpoints.

Odusanya revealed that between January and December 2024, the command processed exports valued at approximately $1.9 billion, a figure that could have been higher if the consolidation had occurred earlier in the year.

He added that in February 2025 alone, the command facilitated exports worth $225.1 million.

He attributed these successes to inter-agency collaboration, with Customs working alongside the Department of State Services (DSS), the National Drug Law Enforcement Agency (NDLEA), and quarantine services, among others.

Despite the improved export facilitation, Odusanya acknowledged that challenges persist, particularly with the Eto call-up system, which has created logistical constraints.

He explained that export containers often get delayed at Lilypond not due to customs processes but because of congestion at the ports, caused by import containers awaiting clearance.

He pointed out that while Apapa remains the busiest port for exports, the congestion problem is less severe at Tin Can due to the presence of an export processing terminal.

On the issue of the Nigerian Export Proceeds (NXP) form, Odusanya stated that the command has ensured compliance with all regulatory requirements.

He, however, acknowledged exporters’ concerns about the process and assured that Customs is working to facilitate seamless trade while ensuring adherence to financial regulations.

He urged maritime stakeholders, including the media, to continue sensitizing exporters on the ease of processing export goods through Lilypond, emphasizing that the command operates transparently and does not condone extortion.

He reiterated that officers at the entry points are strictly there to verify processed cargo and not to serve as an additional checkpoint.

Odusanya concluded by reaffirming the commitment of the Lilypond Export Command to supporting Nigeria’s growing export sector, ensuring efficiency in cargo movement, and addressing any emerging challenges in collaboration with relevant stakeholders.

Economy

Dangote group remits N402.3 billion tax to government coffers in 2024

Gloria Odion

The Pan African Conglomerate, Dangote Industries Limited and its subsidiaries, have disclosed that it paid over N402 billion in taxes in 2024, making it the highest taxpayer in the country.

Dangote’s Chief Branding and Communication Officer, Anthony Chiejina, declared during a meeting with some senior media executives who visited him in his Lagos Office.

He said Dangote Industries Limited (DIL) and its subsidiaries, namely, Dangote Cement, NASCON, Dangote Packaging Limited among others, remitted a total of N402.319billion for the out-gone year as taxes as responsible business enterprises.

Recall that Federal Inland Revenue Service (FIRS) had in late 2024 recognised Dangote group and its subsidiary, Bluestar Shipping as the most tax compliant organizations in the country during its Special Day at the 2024 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI).

The Federal Inland Revenue Service is Nigeria’s agency responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government of Nigeria.

Chiejina told his visitors that as a responsible business organisation, DIL and its subsidiaries have never shieded away from its obligations either to the government in the form of tax payment at all levels or to host communities in the form of Corporate Social Responsibility (CSR).

According to him, the Group’s corporate strategy has evolved just as its businesses have grown, matured and diversified into new sectors and regions over the last four decades.

He noted that Dangote Group has almost single-handedly taken Nigeria to self-sufficiency in cement and refined petroleum products and is expanding rapidly across Africa.

Dangote Group and its subsidiaries were recognised as number one most compliant in tax payment in the country, just as its subsidiary Dangote Cement, the country’s leading cement manufacturer, at another occasion won three awards at the FMDQ Gold Awards in Lagos as the most active business in the Foreign Exchange market.

Dangote Cement Plc was adjudged as the Largest Commercial Paper Quotation on FMDQ and Single Largest Corporate Debt Issue on FMDQ.

Also, Dangote Industries Ltd also emerged as the “Most active corporate in the foreign exchange market”.

Headlines

NIWA Chairman charges Oyebamiji to phase out wooden boats from Nigeria’s waterways

Funso OLOJO

The newly appointed Chairman of the National Inland Waterways Authority (NIWA), Hon.Musa Sarkin-Adar, has charged the management team of the Authority led by its Managing Director, Bola Oyebamiji, to phase out wooden boats from Nigeria’s waterways.

Musa Sarkin-Adar, who paid a

familiarization visit to the management team of NIWA in its Abuja liaison office, in a bid to minimize boat mishaps on the waterways.

He believed it would be a lasting legacy for the present leadership of NIWA if accidents could be minimized on the Waterways.

The Chairman’s advice is however in alignment with the NIWA’ s resolve to stamp out wooden and rickety boats on waterways.

However, Musa Sarkin-Adar further encouraged the NIWA team to do more in connecting other states in the water transportation.

He emphasized on the need for the involvement of the private sector in the development of water transportation, as government cannot do it alone.

In his response, Oyebamiji expressed appreciation for the visit and encouraging words of the chairman and pledged the commitment of of NIWA management to make the nation’s waterways safe and secure.

Oyebamiji also commended the efforts of his management team in the development of the Inland Waterways

Transportation sub-sector.

According to him, he is blessed with an experienced and dedicated team which he cannot take the glory alone.

The Chairman’s visit was attended by all the management staff of the Authority.