Wale Edun: Africa Can No Longer Rely on External Support Amid Tariffs, Cuts in Foreign Assistance

•Says customs collections have funded 15% of budget 

•Declares modernising, harmonising customs procedures could boost intra-regional trade by $50 billion annually, create jobs, reduce poverty

•Adeniyi: We have made progress in addressing customs challenges through series of interventions

James Emejo in Abuja

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, yesterday declared that Africa can no longer rely exclusively on external support, but must build robust institutions and partnerships that are sustainable, inclusive, and regionally anchored.

The minister’s remarks came amid the recent imposition of reciprocal tariffs by the United States and the significant reduction in foreign assistance through USAID, which he said  have direct implications for the African region.

The minister spoke at the opening of the 4th World Customs Organization (WCO) Donors Conference for the West and Central Africa Region, in Abuja.

He said eight countries across West and Central Africa, including Nigeria, Cameroon, and Côte d’Ivoire, have been impacted by these measures, with an average tariff of about 13.83 per cent now levied on exports to the U.S.

The minister said such actions not only increase the cost of exports but also undermine efforts to boost trade competitiveness and diversify our economies.

He said, “The abrupt withdrawal of critical development assistance programs, particularly in health and education sectors, further compounds these economic headwinds.

“These developments underscore the urgency of accelerating regional trade integration under AfCFTA, strengthening domestic revenue mobilization, and investing in resilient customs and trade systems.

“It is clear that we can no longer rely exclusively on external support; instead, we must build robust institutions and partnerships that are sustainable, inclusive, and regionally anchored.

He said, “Let us envision a West and Central Africa where trade flows seamlessly across borders, where customs administrations serve as facilitators of economic growth while effectively safeguarding our communities, and where the full potential of initiatives like AfCFTA is realized through modernized and harmonized customs procedures.

“With continued collaboration between our governments, customs administrations, and development partners, I am confident that this vision can become reality.”

This is as the minister also disclosed that Nigeria Customs Service (NCS) collections have traditionally helped to fund about 15 per cent of the budget.

He said current revenue challenges amid global headwinds had made the role of customs administration more crucial and increasingly complex, as they must continue to facilitate legitimate trade, secure borders, and collect revenue for national development.

Amid the challenging global environment, Edun said the implementation of the African Continental Free Trade Area (AfCFTA) brings the hope of a transformative opportunity for the region, creating both new possibilities and responsibilities for customs administrations.

Providing context, he said West and Central Africa represented a market of over 450 million people, with a combined GDP exceeding $900 billion.

Yet, he said intra-regional trade accounts for just about 12 per cent of total trade volume, compared to 60 per cent in Europe and 40 per cent in East Asia.

The minister said, “Our region houses eight of the world’s 32 landlocked developing countries, which face average import costs nearly twice those of coastal nations.

“Customs processing times across our borders average 12 days, significantly above the global best practice of less than 24 hours. These statistics highlight both our challenges and our enormous untapped potential.”

However, the minister said modernising and harmonising customs procedures could boost intra-regional trade by an estimated $50 billion annually, create millions of jobs, and significantly reduce poverty across communities in West and Central Africa.

He commended the NCS for its historic revenue collection performance in the past year.

He said, “With a remarkable growth of about 90 per cent from the previous year and exceeding government’s target by up to 20 per cent, the Service has also shown commitment to its mandate with this.

“As the Minister of Finance overseeing this agency, this performance is reassuring that with the right resources and support, our customs administrations can meet and surpass expectations in its critical functions.

“More importantly, these impressive results validate the effectiveness of WCO recommendations and initiatives implemented in Nigeria.

“We have witnessed firsthand how WCO-supported programmes such as Advanced Ruling and Authorised Economic Operators (AEO) have simultaneously enhanced trade facilitation and revenue collection, while positioning Nigeria to fully leverage the benefits of the AfCFTA.”

According to him, the success story of the NCS serves as compelling evidence that with proper implementation, WCO frameworks deliver tangible benefits to member administrations.

Edun pointed out that under President Bola Tinubu’s Renewed Hope agenda, Nigeria is driving transformative economic reforms that are gradually yielding dividends-enhancing trade competitiveness, fiscal resilience, and inclusive growth.

He said one of the highlights of this agenda was ongoing customs modernisation and the efforts to implement the National Single Window Project, which will revolutionise trade facilitation through digitization, reduced clearance times, and seamless regional integration.

These efforts are enhanced by the support of development partners, whose technical and financial contributions such as the World Bank’s Accelerating Resource Mobilization Reforms (ARMOR) Programme – have been instrumental in strengthening revenue mobilisation and advancing public financial management reforms.

He added that these achievements, while significant, are only the “beginning of what our region can accomplish through enhanced customs modernization and cooperation.

“The AfCFTA presents an unprecedented opportunity to boost intra-African trade from its current modest levels to heights that can truly transform our economies.

“However, realising this potential requires sustained investment in customs infrastructure, technology, and capacity building across all member states.”

He said, “However, as we chart this path toward greater integration and prosperity, we must also remain mindful of emerging external challenges that threaten our collective progress.”

However, Controller General of Customs, Mr. Basir Adeniyi, said the theme of the conference, “Partner mobilization around the priority projects of the WCO’s WCA region: A Genuine pledPge to Meet the modernisation Goals and Performance Targets of Member Customs administrations,” reflected a collective commitment to transforming customs operations through targeted technical interventions supported by our development partners.

He said customs in the region faced substantial challenges which are not insurmountable with the right technical support and partnerships.

Adeniyi said across the West and Central Africa region, customs administrations are grappling with several technical challenges that impede effective trade facilitation and revenue collection.

The challenges include,

Inadequate digital infrastructure for seamless processing of declarations and risk management; Limited interconnectivity between national customs systems, hampering effective information exchange; Insufficient technical capacity to implement advanced customs procedures such as post-clearance audit and authorized economic operator programmes as well as challenges in effectively implementing technical aspects of the AfCFTA Rules of Origin and other trade facilitation instruments.

Others are technical barriers to implementing coordinated border management with other regulatory agencies; fragile borders; and the fast-paced evolution of e-commerce.

Adeniyi said, “In Nigeria, we have made significant strides in addressing these challenges through a series of interventions. Our experience offers valuable insights into the impact of targeted modernisation initiatives.