Customs: Confronting scourge of corruption on importation

Importation is a key component of Nigeria economy. The nexus of the business transactions in this regard is domiciled in the maritime sector. AJIBOLA ABAYOMI reports

Even though, the federal government is remodeling the economy through diversifi cation so as to add value to the gross domestic income nevertheless importation still drives our monetary regime. With threatening corrupt processes, an urgent comprehensive reform is inevitable.

At diff erent times, interfacing authorities like the Nigeria Customs Service (NCS), the Nigeria Maritime Administration and Safety Agency (NIMASA) and the Nigeria Ports Authority (NPA) have evolved several policies to curtail sharp practices on importation of goods with a view to stem the tide of corruption. Despite the fl uctuating ratio of dollar and other foreign currencies in recent times, the fate of the naira is still largely dependent on the volume of trade either at the sea ports or across the border stations. Th is has strong impact on the nation’s forex, fi scal and monetary policies.

Th e three stated major routes are the legal entry points where duties are levied on goods transiting the country, and NCS is one of the leading agencies playing a key role in these areas. In so doing, the Customs and other agencies have their hands fi lled with issues inhibiting the free fl ow of businesses.

Nigeria controls the highest cargo in the entire West and Central African regions with over 200 million metric tonnes of cargo annually and more than 6000 ocean going vessels calling at her ports yearly, but the unstable auto and pricing policies remain a key challenge.

In as much eff ort are being made to safe guard the home grown industries geared towards reversing the trend of making the nation a dumping site for all manners of imported products however there is need review both our delivery and terminal charges. Th e charges that range from 70% and above depending on the particulars of cargoes and consignments involved coupled with other illegal duties thus make business procedures unfriendly. Checks revealed that the World Trade Organisation (WTO) import pricing policy being implemented by most countries ranges between 20 to 30% depending on the nature of goods. Recently, fellow countries like Ghana, Benin and South Africa have drastically reduced or cancelled their handling charges.

Not only that they also off ered importers incentives on terminal charges but the reverse is the case in Nigeria. Ali Worried about the development, a foremost trade expert and customs licensed agent, the President of National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), and the Managing Director, Eyis Resources Limited, Lagos, Mr Lucky Amiwero, captures the frustration in the industry in the following sequences.

He believes, the national policy formulators are still working at variance with both local and international business laws. “Th e government is not helping matters at all.

Th is is not a laughing matter. Th e present Controller General (CG) of Customs took over offi ce and in less than one month, he locked up the boarders without following international trade procedures. “Yet there are over six illegal charges not known to the law attached to the clearing procedures at the ports. Government should stop appointing learners as heads of the Customs, NPA and NIMASA to start with. We need experts” the trade procedure expert, who had served in 167 diff erent Maritime Reforms Committees set up by the government, began. For him, the Customs decision to ban importation of goods through the land borders without the mandatory 90 days grace to importers is against the WTO treaty under article 12 which Nigeria is a signatory.
“Our fate-components (economic benefi ts from importation of goods) that should generate over two million employments have moved to the neighbouring countries despite the fact that we control over 80% of the cargoes in the West Africa because at least 30 to 40% of the fees charged here are overlooked and those operators prefer to transit their goods through Nigeria.

“Go to Ghana and Togo, things are moving at their ports because they are capiterlising on our unstable policies to support their economy. Ghana just awarded a contract of $1.5 billion to refurbish their ports, tell me how many contracts have been awarded here to address the decaying infrastructures at our ports?

Th ough, the views expressed by Amiwero on importation are glaring, one wonders the type of advisers working with the present CG of Customs, Colonel Hammed Ali (rtd). Th e boarders have been shut to all transactions except through the ports. As clever as the customs is, the smugglers are still having their ways through inducement of their offi cers. Within the 21 months in offi ce, Ali, who has shown zero-tolerance for corruption, there are still a lot to be done to sanitise the NCS. Going by his body language, there are better days ahead but the present sharp practices within the agency coupled with the inconsistent policies need the input of core maritime administrators for the nation to benefi t. While Amiwero believes that the CG, being a retired offi cer ought to have been guided by the 1996 government’s ill-fated harsh auto policy on restriction of age of vehicles through the borders gave away our fate-components to Benin, Ghana, Togo and other west Africa nations up till 1998 before the tide fully was reversed in 2002 other school of thoughts think diff erently. Some have said the stand of the customs boss that all imported goods especially the cars should go through the ports will benefi t the nation soon. Th ey other countries are taking undue advantage of the perceived unorganised import procedures in the country. But the truth is that at the moment, Nigeria import policies are not friendly compared to the neighbouring countries. Confronted at a stakeholders meeting in Lagos in March, the CG was giving an insight into the activities of some bad elements within the NCS. Among other things, he was advised to reverse the growing trend of multiplicity of government agencies interfering unnecessarily with cargo delivery process at the ports to the extent that Customs as the lead agency in ports have been relegated to the background by the police with its multitude of units.

President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, who addresed Ali and other senior customs offi cers, was bold enough to identify some of the infractions at the ports. He urged the customs to work towards eliminating human interfaces, with a view to arresting corrupt tendencies saying that the exit gate offi cers are clogs in the wheel of cargo clearance.

“I am sure you are aware of the current sticker they call alerts at diff erent destinations within and outside the ports. We have the CG alert, the Area Controller alert, port Commander alert, security alert and many others. At every point you must pay. In fact they are using your name to extort money from us. “Our men are ready to pay the approved duty after thorough check by the scanners. Let us learn from the neighbouring countries like Ghana and Togo where they generate more revenues through transparent and scientifi c means. “What are we afraid of? Th e level of indiscipline among the customs offi cers at the ports particularly at Apapa in Lagos is so embarrassing. A situation where a junior offi cer posted from Abuja claims to have authority of the CG to boss the commanders at port is not good.”

Olayiwola was also quick to point out that there were offi cers who have permanently refused to go on transfer at the ports because they consider the environment very lucrative.

He also reminded Ali to save the jobs of Nigerians urging him to review the issuance of clearing licences to non- Nigerians. Currently, some Lebanese and Indians are the benefi ciaries of import licence in the country. It was learnt that the foreigners, who have taken over 50 per cent of the jobs from Nigerians, are being patronised by Nigerian companies. National Association of Government Approved Freight Forwarders (NAGAFF) was not left out of the cry against irregularities in the sector.

Its Acting President, Chief Increase Uche believes the Customs must critically review its operations in the areas of professionalism, enabling legislation and best practices, if the service hopes to actualise its new dream. Th e freighters want customs and other agencies to evolve a working relationship to lay foundation for transparent process.

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