CLIFF ALOZIE-ERONDU
As Nigeria tries to build its economy, It faces the problems that smuggling has been gathering- and official response is at best less than satisfactory.
The fight to eliminate smuggling activities in the country seem not to be succeeding going by series of reprisal attacks on the officers of the Nigeria Customs Service by die-hard importers. These attacks customs field officers say, has not only instilled fears in there marrows, but has created mix feelings about the job even to there families. The feeling of whether they should quit customs job and face the problem of hunger and starvation in the country, or to continue not knowing what evil that will befall them tomorrow.
According to statistics, in 2005, four officers of the Nigeria Customs Service, Western Marine command, lost their lives in the sea, in a gun battle with smugglers. In other parts of the country, similar events took taken place, leading to loss of several lives. Also in October 16, 2008 at Agbara, in Lagos , customs management confirmed that an officer lost his life in a clash with smugglers who were bringing in contrabands from Seme-Badagry Expressway.
The fight to eliminate smuggling activities in the country seem not to be succeeding going by series of reprisal attacks on the officers of the Nigeria Customs Service by die-hard importers. These attacks customs field officers say, has not only instilled fears in there marrows, but has created mix feelings about the job even to there families. The feeling of whether they should quit customs job and face the problem of hunger and starvation in the country, or to continue not knowing what evil that will befall them tomorrow.
According to statistics, in 2005, four officers of the Nigeria Customs Service, Western Marine command, lost their lives in the sea, in a gun battle with smugglers. In other parts of the country, similar events took taken place, leading to loss of several lives. Also in October 16, 2008 at Agbara, in Lagos , customs management confirmed that an officer lost his life in a clash with smugglers who were bringing in contrabands from Seme-Badagry Expressway.
Similarly, in November 14, 2008 about a month after, BusinessDay, gathered that some miscreants in connivance with dare devil smugglers, held hostage some officers of the Nigeria Customs Service, who were on their way to take away two impounded trucks conveying some unaccustomed goods at Seme. Moreover, on Friday, April 24, 2009 reports revealed that three customs officers, were seriously wounded while trying to stop a group of smugglers, while two others sustained minor injuries during the clash.
The attacks stakeholders say have been an on-going thing in all the country’s borders, which should attract the attention of the Federal Government, to find a lasting solution to the problems. Smuggling they say does not only lead to lost of lives of both customs officer and the smugglers, but leads to lost of revenue to the government and the business community.
The attacks stakeholders say have been an on-going thing in all the country’s borders, which should attract the attention of the Federal Government, to find a lasting solution to the problems. Smuggling they say does not only lead to lost of lives of both customs officer and the smugglers, but leads to lost of revenue to the government and the business community.
Although government had in the recent times, reviewed the number of items on the prohibited list from 43 to 22, the former managing director of Maersk Line Nigeria , Tom Knudsen, is of the opinion that it is still on the high side if government intends to reduce smuggling. According to him, government’s policy is contributing to the problem of smuggling in Nigeria . There is no place in the world according to him, where they have such number of banned items. If government wants to protect its industries from going into extinction, the best thing to do is to support them, by ensuring that there is constant power supply, and that raw materials to work should be made available. If the raw materials are to be imported, they should be allowed to bring them in at a subsidized rate, which is what is obtainable in some other countries, Knudsen explained.
For the chairman, Shipping Association of Nigeria (SAN), Val Usifoh, available data has shown that Nigeria has up to 80 banned items in its import prohibition list, while countries like Sierra Leone , Liberia , Congo and Guinea have none. Other countries such as Senegal have four, Ghana 19, Benin 10, Cameroon 13 and Gambia one. He pointed out that there is ban on importation of sugar, sweets, soap, fruit juice, textile fabrics, shoes, toothpaste, envelopes, mosquito nets and biscuits. Others are bicycles, textile glass bottles, noodles, beer, fishing nets, toilet paper and mosquito coils, but regretting that they still find their way into Nigerian market, which he said increases smuggling activities.
For the chairman, Shipping Association of Nigeria (SAN), Val Usifoh, available data has shown that Nigeria has up to 80 banned items in its import prohibition list, while countries like Sierra Leone , Liberia , Congo and Guinea have none. Other countries such as Senegal have four, Ghana 19, Benin 10, Cameroon 13 and Gambia one. He pointed out that there is ban on importation of sugar, sweets, soap, fruit juice, textile fabrics, shoes, toothpaste, envelopes, mosquito nets and biscuits. Others are bicycles, textile glass bottles, noodles, beer, fishing nets, toilet paper and mosquito coils, but regretting that they still find their way into Nigerian market, which he said increases smuggling activities.
According to the former comptroller general of Customs, Jacob Gyang Buba, smugglers have not seen the need to desist from their act because they are bringing in consignments that are not produced in Nigeria . He explained that these smugglers have been importing these goods before government decided to put them under prohibition list, and changing from a business they have been into over a long period of time has become very difficult for them but stressing that government policy has to be obeyed.
However, the managing director of Twindeck Shipping Company, Charles Okorefe, said there is no gainsaying that some Nigerian importers willingly flout the law, by bringing in contrabands in order to evade payment of import duty, but stressing that the type of policies government is putting in place is by no means, encouraging smuggling activities. Okorefe, stated that apart from the number of banned items, unfriendly port charges by terminal operators, added with high customs duty has added to high rate of smuggling.
Importers he explained want to do business where they will maximise profit, but stressed that Nigerian ports are the most expensive in the West African sub-region. He regretted that customs clearance procedures and multiplicity of agencies at the ports are also another cause of smuggling, maintaining that although smuggling may not be totally eradicated, but the number of agencies at the ports is not helping matters.
Government he said, announced the reduction of the number of agencies at the ports to five, which are the Nigeria Customs Service, Nigeria Immigration Service, National Agency for Food and Drug Administration and Control, Standard Organisation of Nigeria and the State Security Service, but all others are still very much at the ports. Okorefe however pointed out that some importer purposely want to evade customs duty in order to make excessive profit, stressing that such illegal act is reducing government’s revenue generation.
In the same manner, port operators are of the view that some importers bring in their consignments through the neighbouring countries by negotiating with some of the customs officers at various checkpoints to fly in these goods, while some risk it, by bringing in the commodities through local routes to avert any sort of settlement.
The managing director of Eyis Resources Limited, Lucky Amiwero, on his part, said government does not carry the freight forwarders and other experts along when making decisions that will affect the operators in the industry, stressing that if they do, it will go along way to solve smuggling problem in the country. If the import duty is reduced like in other West African countries, Nigeria he said will make more money and smuggling will be reduced. Customs, the freight forwarder say will not be risking their lives everyday, chasing smugglers from one remote village to another. Amiwero also explained that smuggling can be reduced to the barest minimum if government should be alive to their responsibilities by providing the necessary facilities that will encourage the manufacturing sector, so that some of the imported goods can be produced locally at a cheaper rate.
Consequently, he blamed the increasing rate of smuggling on the confusion which customs introduced, by using the Customs and Excise Management Act (CEMA) together with the Import Guidelines, which for him, is not obtainable in this present dispensation. The confusion in the use of CEMA together with the Import Guidelines is also another factor that has made cargo clearance very difficult, saying that the only way importers can bring in their cargoes is to use the neighbouring ports. Nigeria according to him is controlling 75 percent of the total cargoes that come into West Africa because it has the population and the market, pointing out that the only way the neighbouring countries could attract more patronage was to reduce their import duty and the number of prohibited items.
Also, the managing director of Banquaires Facilities International Limited, Felix Adeduro, lamented that smuggling has been on the increase because the textile industries have gone down from 140 firms in 1970 and 80s, to less than 45, stressing that only 10 are in active production. He felt disappointed that smuggling may continue to thrive because of lack of electricity, Agriculture, good roads and many other factors to support the local industries. Adeduro explained that textiles worth N19 billion come into the country from Dubai , China , Turkey , among others, every year regretting that most of these goods come into the country through approved and unapproved routes.
So, because of the huge revenue lost through smuggling activities, BusinessDay gathered that customs have started parleying with the community leaders around the border stations, by paying or encouraging them to give necessary information about these smugglers, but analysts believe that the informants can only give out information when they wish to and conceal those they do not want to reveal.
Therefore, the secretary, Western Zone of the Importers Association of Nigeria, Kingsley Chikezie, disclosed that the only way to reduce smuggling and revenue lost is for the Nigeria Customs Service to see their jobs as trade facilitation and not money making venture, stressing that certain goods that are not dangerous to the nation should be allowed to leave the port as quickly as possible. But if customs officers continue to seize containers with the intent to extort money rather than facilitate trade, it will cause more cargo build up at the port, as well as encourage smuggling into the country.
However, the managing director of Twindeck Shipping Company, Charles Okorefe, said there is no gainsaying that some Nigerian importers willingly flout the law, by bringing in contrabands in order to evade payment of import duty, but stressing that the type of policies government is putting in place is by no means, encouraging smuggling activities. Okorefe, stated that apart from the number of banned items, unfriendly port charges by terminal operators, added with high customs duty has added to high rate of smuggling.
Importers he explained want to do business where they will maximise profit, but stressed that Nigerian ports are the most expensive in the West African sub-region. He regretted that customs clearance procedures and multiplicity of agencies at the ports are also another cause of smuggling, maintaining that although smuggling may not be totally eradicated, but the number of agencies at the ports is not helping matters.
Government he said, announced the reduction of the number of agencies at the ports to five, which are the Nigeria Customs Service, Nigeria Immigration Service, National Agency for Food and Drug Administration and Control, Standard Organisation of Nigeria and the State Security Service, but all others are still very much at the ports. Okorefe however pointed out that some importer purposely want to evade customs duty in order to make excessive profit, stressing that such illegal act is reducing government’s revenue generation.
In the same manner, port operators are of the view that some importers bring in their consignments through the neighbouring countries by negotiating with some of the customs officers at various checkpoints to fly in these goods, while some risk it, by bringing in the commodities through local routes to avert any sort of settlement.
The managing director of Eyis Resources Limited, Lucky Amiwero, on his part, said government does not carry the freight forwarders and other experts along when making decisions that will affect the operators in the industry, stressing that if they do, it will go along way to solve smuggling problem in the country. If the import duty is reduced like in other West African countries, Nigeria he said will make more money and smuggling will be reduced. Customs, the freight forwarder say will not be risking their lives everyday, chasing smugglers from one remote village to another. Amiwero also explained that smuggling can be reduced to the barest minimum if government should be alive to their responsibilities by providing the necessary facilities that will encourage the manufacturing sector, so that some of the imported goods can be produced locally at a cheaper rate.
Consequently, he blamed the increasing rate of smuggling on the confusion which customs introduced, by using the Customs and Excise Management Act (CEMA) together with the Import Guidelines, which for him, is not obtainable in this present dispensation. The confusion in the use of CEMA together with the Import Guidelines is also another factor that has made cargo clearance very difficult, saying that the only way importers can bring in their cargoes is to use the neighbouring ports. Nigeria according to him is controlling 75 percent of the total cargoes that come into West Africa because it has the population and the market, pointing out that the only way the neighbouring countries could attract more patronage was to reduce their import duty and the number of prohibited items.
Also, the managing director of Banquaires Facilities International Limited, Felix Adeduro, lamented that smuggling has been on the increase because the textile industries have gone down from 140 firms in 1970 and 80s, to less than 45, stressing that only 10 are in active production. He felt disappointed that smuggling may continue to thrive because of lack of electricity, Agriculture, good roads and many other factors to support the local industries. Adeduro explained that textiles worth N19 billion come into the country from Dubai , China , Turkey , among others, every year regretting that most of these goods come into the country through approved and unapproved routes.
So, because of the huge revenue lost through smuggling activities, BusinessDay gathered that customs have started parleying with the community leaders around the border stations, by paying or encouraging them to give necessary information about these smugglers, but analysts believe that the informants can only give out information when they wish to and conceal those they do not want to reveal.
Therefore, the secretary, Western Zone of the Importers Association of Nigeria, Kingsley Chikezie, disclosed that the only way to reduce smuggling and revenue lost is for the Nigeria Customs Service to see their jobs as trade facilitation and not money making venture, stressing that certain goods that are not dangerous to the nation should be allowed to leave the port as quickly as possible. But if customs officers continue to seize containers with the intent to extort money rather than facilitate trade, it will cause more cargo build up at the port, as well as encourage smuggling into the country.
