Nigeria Customs Didn’t Raise Import Duty But Only Aligned With CBN FX Rates, Says CG Adeniyi

The Comptroller General of the Nigeria Customs Service (NCS), Adewale Adeniyi, on Tuesday clarified that the service only aligned with the new foreign exchange (FX) rate prescribed by the Central Bank of Nigeria (CBN) and did not wilfully raise duties paid on imports.

Speaking on Arise News Channel, THISDAY’s broadcast arm, the customs boss explained that the decision was part of the “repercussions” of the CBN’s effort at enforcing a single FX window.

In December, the federal government increased import duties by as much as 22.24 per cent, a development that operators said could worsen the inflationary trend in the country.

The increase, the third in 2023, reportedly drove the cost of clearing a 40-foot container from N7.3 million to N8.9 million.

But Adeniyi argued that customs could not independently or unilaterally use new exchange rates without recourse to the merged FX window.

“The new administration has not made any pretension towards the fact that it was going to take a number of very bold decisions and reforms aimed at repositioning the Nigerian economy and reforms that will bring sustainable change over a long period of time.

“So one of the reforms that have been undertaken is the merger of the forex markets, the various segments of the forex markets, which have been merged in the very few days of the new administration.

“And so this has repercussions or effects on our operation. So what it means is that we cannot use rates independently that are not tallied or that are not specified through this merged window. So what we do is just to update our system.

“So it is not about costumes increasing the rates. We have nothing to do with whether the rates go up or whether the rates go down. We follow what is prescribed for us by the regulatory authority for monetary affairs, which is the Central Bank of Nigeria,” he maintained.

He stated that the deployment of technology was being used to address very complex and knotty issues confronting customs administration, stressing that some of the issues in the sector include the issue of port competitiveness and port efficiency.

“I’m also coming to office after eight years of the tenure of my predecessor who had a very strong personality. So this raises a number of challenges for me, coming in as an insider.

“So, expectations are quite high, that is the pressure to perform. And I must say in the last six months, we’ve given this challenge our best. We’ve raised revenue  by about 37 per cent. And the remaining challenge would be for us to have a process to engage our officers and our stakeholders,” he stated.

Adeniyi argued that the job of the customs service had gone beyond just mere revenue collection, describing it as a narrow view. He added that it now includes trade facilitation, security and others.

He said that trade facilitation also gives an advantage as it gives the opportunity to increase revenue generation.

Speaking on the directive by the Minister of Finance that import duty on steel and electric vehicles be removed, the customs CG stressed that the service would implement all fiscal policies directed by the federal government, especially those meant to engineer development in the various sectors of the economy.

Adeniyi said the welfare of officers was very paramount to meeting the target of the NCS, including insurance cover and timely promotion of staff.

“We are making provisions for insurance cover for those that come to any form of injury while discharging their official duty. This is critical to officers’ welfare, and most importantly, career progression also comes under officer welfare.

“This and others, we have made very conscious attempts as CG of customs alongside my management to ensure all is done. If you talk about motivation through career development, we have organised massive capacity programmes both locally and internationally.

“In the second half of 2023, we had over 6,000 customs officers that went for different capacity programmes at home and abroad.

“The promotion exercise that we used to roll over into the third, fourth, or sixth month, we ensured we started it in the third quarter of 2023, and by the end of the fourth quarter of 2023, the promotion exercise had been completed,” he noted.

According to him, over 2,400 customs officers benefited from the promotion exercise, stressing that the target to generate N5.1 trillion remains achievable in 2024.

He also announced a plan to review the salaries and allowances of its staff to achieve the N5.1 trillion revenue generation target for 2024.

In his words, “In 2024, we have the target to generate N5.1 trillion which we believe is quite doable, but we need to motivate our officers a little bit more and the last salary review we had was over five years ago and I think we are due for another review.

“We will take a second look at some of the allowances which officers have been collecting to do their jobs. We will also look at exit packages for officers who are retiring so that they will be able to concentrate on their jobs while they are still in active service.”

Going forward in the year, Adeniyi said the service would be leveraging technology for customs operations to leapfrog revenue generation and improve efficiency.

Meanwhile, the Niger / Kogi Area Command of the NCS has charged eight suspects to court over alleged smuggling.

The suspects were said to have brought into the country eight exotic cars through the Babana borders despite the ban on importation of goods through the land borders last December.

The Comptroller of Customs, Mr. Busayo Kadejo, who disclosed this while briefing newsmen in Minna, on Tuesday, however said the suspects have been given “administrative bails” but added that “we will pursue the case to its logical conclusion” before warning people to desist from smuggling, an act he stressed was negatively affecting the economy.

Kadejo, also said  the Command seized 35 ( 25 litres) each of petrol from some undisclosed number of smugglers pointing out that the seizure had been auctioned, “due to it’s inflammatory nature after permission for disposal was sought and approval granted by the Comptroller General of Customs with the accrued proceeds paid into the Federation Account.”

He disclosed that the cumulative duty paid on all the seized items in December 2023 was N195,780, 000 while the Command also raked in N12,605,439,00 from Demand Notices.

Kadejo said in 2023, the Command generated N206,301933.00 from 65 seizures 2023 while N77,271851.00 was generated from Demand Notices during the same period saying, “we achieved this through the ” massive deployment of intelligence” and application of ” our rules of engagements.”

The Comptroller was delighted that throughout the period under review, the Command did not record any casualty.

“I wish to warn smugglers and other criminally minded elements that we will not spare them no matter how highly placed they are in the society,” maintaining that ” our job is to execute government policies.”

Emmanuel Addeh, Gilbert Ekugbe and Laleye Dipo

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