Adeniyi: Customs Will Not Allow Saboteurs Take over Economy

•Moves to overhaul procedures, processes at ports, borders 

•Says heavy sanctions now await violators in new service law

•Clarifies import tariffs not suspended on all goods by president  

•Under new legal regime, only projects exceeding 10% of total capital expenditure require FEC approval  

•Customs retains 4% free-on-board value of imports

James Emejo and Aisha Kabiru in Abuja

The acting Comptroller-General, Nigeria Customs Service (NCS), Mr. Adewale Adeniyi, yesterday read the riot act to economic saboteurs, insisting that the Customs cannot afford to allow them take over the economy.

Adeniyi, who admitted that there were still some incidences of petrol smuggling in some border stations, also noted that the rate of smuggling had reduced remarkably.

Addressing journalists shortly after the opening of a two-day sensitisation and management retreat on the Nigeria Customs Service Act (NCSA) 2023, he said the service was paying close attention to cases of smuggling across the borders, adding that the issue of fuel remained highly sensitive.

The acting customs boss further clarified that contrary to suggestions, President Bola Tinubu has not suspended import duty on goods following his recent Executive Orders.

Rather, he said there were tax reviews on certain items.

He said, “I mean, that’s too sweepy; there are some strategies on tax and revenue that were reviewed, just some part of it – excise on telecoms, the variations in vehicles among others.  It’s just some parts that were suspended. So, the suspension does not affect the regular import of goods and I think you have to get that very clearly.”

Adeniyi further revealed that as part of the critical first steps of his administration, the service would review procedures and processes in the ports and border areas as well as boost its enforcement strategies going forward.

“We are going to review all of that and we want to do them in such a way that they promote user-friendliness, economic growth without compromising our national security,” he said.

Nonetheless, he said the current Customs regulation which came into effect in 1958, has had several defects that impeded the effective operations of the service.

He said with the present business dynamics, and volume of international trade which had changed tremendously including the technological revolution in every sphere of influence, the Customs space cannot be exempted.

Adeniyi said, “So, we need a stronger legislative framework; we need a framework that is more adaptable and flexible and that allows us to infuse our technological solutions and innovations into our operations. These and more are what this new legislation has given to us and we are excited.”

He said the service intended to tighten the noose around economic saboteurs by strengthening the punitive instrument to serve as a deterrent.

The acting Customs CG added: “We discovered that the previous legislation did not provide sanctions that are punitive enough for violations of customs laws.

“Some of the fines were ridiculous – remember that this piece of legislation was put in place in 1958. You won’t believe that in some parts of the legislation – some fines were written in pennies. And when you translate them, they mean nothing.

“So, criminals are always willing to commit fraud because they know they are going to get a slap on the wrist. What this law has brought are very heavy punitive sanctions that should deter people from committing those violations against the customs law.”

Speaking further on the new legal regime, he said the service has been statutorily empowered to among other things administer and enforce the provisions of the Act; collect and account for revenue from customs and excise; promote trade facilitation; prevent smuggling activities and carryout border enforcement; and do such other things as are necessary for or incidental to the performance of the function and duties of the Service under the Act.

He noted that as a responsible institution, the NCS was not unmindful of the fact that the members of the public were not yet familiar with the provisions of the new legislation, particularly the new procedure, processes, and the stiff punitive provisions in the law.

He added: “We are equally appreciative of the urgent need to sensitise the public on the provisions of this law to prevent the excuse of ignorance of the law, which is not a defense.

“The service will continue to sensitise and educate the public on the provisions of the law and customs procedure and processes.”

He said the workshop was just an introduction to the new law, adding that the appreciation and understanding of the law shall be due to the constant study, usage, and application.

In his remarks however, Chairman, House Committee on Customs and Excise in the 9th National Assembly, Hon. Leke Abejide, who also sponsored the bill, noted that assent to the bill was declined on three occasions before the eventual passage.

He said for the first time since the inception of the service, the idea of always going cap in hand for finances in order to perform its lawful and statutory duties had become a thing of the past with the introduction of Section 18 of the Act.

The section provides for a sum not less than four per cent of the Free-On-Board (FOB) value of imports according to international best practice as part of the funds the service shall keep and maintain for its operation.

In addition, Section 18(6)(a) further empowered the NCS to superintend over its budget line items whose cost is 10 per cent or less of the entire capital budget under review.

Abejide, said this makes it faster for the service to be able to implement its capital projects as quickly as possible to enhance the performance of officers in service delivery.

He said, “This implies that only projects of which value is above 10 per cent of the total capital projects of the year under review will require Federal Executive Council approval.”

Further expatiating on the four per cent revenue retention, the lawmaker said, “What it means is that before now, customs funding comes from seven per cent cost of collection.

“But it is now four per cent, and what it means is that if there is a waiver on any item where customs would be getting zero, if there is a waiver from the Federal Ministry of Finance or even from the presidency, customs will still get their revenue of four per cent.

“And so, they will have more money to run their own affairs. They’re four times richer now.”

Abejide stressed that one of the reforms injected into the Nigerian Customs Act 2023 was the enhancement of trade facilitation policies of the service, which has upgraded the status of the service to the 21st Century strategic revenue generating institution.

He said, “Our effort is providing policies statutorily implanted, which invigorates the objectives of keeping our boarders safe and making avenues of leaked revenue accountability lean, hence this institution shall in the shortest period reap the dividends of this legal framework that gear up the ease of doing business in Nigeria.”