Problems of the Nigeria Custom Service & Solutions

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The Nigeria Customs Service (NCS) is an independent service under the

supervision of the Nigerian Ministry of Finance. The Nigeria Customs

Service is responsible for the collection of customs revenues for the

federal government, the facilitation of both national and

international trade, and in charge of anti-smuggling activities

through the borders. Nigeria customs service is an important agency in

the generation of revenue for the country. In 2019, the Nigeria

Customs Service is reported to have generated a total amount of 1.3

trillion naira as revenue.









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Problems of the Nigeria Customs Service & Solutions







Unfortunately, also, the Nigeria Customs Service is known to have a

reputation that has been marred by numerous allegations of corruption

and fraud scandals. Even till date, it is common for bribes to be paid

by individuals to NCS officials. Many also resort to smuggling and

undervaluation of goods. This article addresses the problems of the

Nigeria Customs Service and solutions to these problems.







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Inept customs and immigration machinery



Many who have come in contact with Custom service officials can

testify of their unprofessionalism and incompetence when handling

matters. In order to address issues such as smuggling of goods, the

government needs to strengthen the capacity of customs and immigration

officers so they can better administer the country’s trade policies

and laws.



Incompetence of NCS officials



In 2018, the Vice President, Professor Yemi Osinbajo accused officials

of the Nigeria Customs Service (NCS) of not coming to office on time

for examination of cargoes. This is just another report of the

ineptitude of NCS officials which has been a stumbling block to the

ease of doing business. NCS officials have also been accused of

continual interception of goods at the ports and the land borders. One

can only wonder why officials of the Customs would be stopping

containers for another round check just after the port gate. This also

frustrates the National Single Window (NSW) project meant to hasten

the cargo clearance process at the nation’s ports. The National

Single Window is a platform set up for the purpose of integrating all

agencies involved in the clearance of cargoes at the ports. The

unprofessionalism and incompetence of NCS officials is one of the

major issues with the Nigeria Customs Service.



Corruption



In 2004, President Olusegun Obasanjo announced an import prohibition

of 41 products which he believes could be produced in the country.

Some of the products banned included: printed textiles, bottled water,

toothpicks, leather shoes, furniture, plastics, etc.







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The ban was poorly enforced by custom and government officials.

Corruption which is a big problem in the country is also a serious

problem in the country’s Customs Service. Most of the big-time

smugglers are wealthy and highly connected people with influence in

government. These ones can easily bribe their way through or avoid

being prosecuted for smuggling.



Ignorance and Illiteracy



Another problem of the Nigeria Customs service is the illiteracy and

ignorance of the Nigerian people who encourage smugglers and stifle

the work of the service. Nigeria customs service officials have

reported how some Nigerians escort smugglers into the country. Some

are sympathetic towards them and even waylay, officials, when they

have seized the goods of smugglers.



Solutions to the problems of Nigeria Custom Service



Automation of the clearing process



One of the solutions to the problem of bribes at the ports and borders

is the automation of the clearing process of goods. When the clearing

process is automated, it will be more customer-friendly with ease of

operations and will facilitate more trades. It will also restore

public confidence in the Nigerian customs service’s clearing

procedures.



Policy reviews



The government needs to review many of its policies such as:





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ECOWAS Trade Liberalization Scheme



Many abuse the ECOWAS Trade Liberalization Scheme and through this

policy, smuggle in low standard goods. The government needs to make

conscious efforts to block revenue leakages by visiting factories in

member countries so as to ascertain the eligibility of products.



Bureaucracy of importation and exportation of goods



The complexity and bureaucracy that surrounds the importation and

exportation of goods has nurtured illegal activities such as bribe

payments



Proper Investigation into misconducts



The government should set up a Special Team to investigate cases of

fraud (non-payment of appropriate duties) at the Port and Land

borders.



Intensification of Anti-Smuggling Operations particularly at the

Border Stations.



Discipline



In order to make NCS officials more disciplined, penalties and

sanctions should be put in place for erring officers. There should be

punishment ranging from reduction in rank to outright dismissal for

those caught collecting bribes or facilitating the smuggling of goods



Funding



The funding of the Nigeria Service is from 7% Cost of Collection. The

administration of the Nigerian Customs Service has reported that this

is not enough to cater to the needs of all of the service. Such needs

include:





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Provision of working tools



Barrack accommodation



Payment of salaries and allowances of officials.



Training of officials



The service has reported that the inadequacy of funding has resulted

in the Service’s request for intervention funds to meet her needs.

It is also reported that Nigeria Custom Service officials are the

least paid security agents in the country. This can contribute to the

unprofessional conduct of most officials such as collection of bribes.



Capacity Building



Officials in the Nigeria Customs Service need to be trained in modern

techniques of customs administration and according to international

standards. This is especially in the area of Information Technology.



Weak Legislation



The lack of cohesive policies to address problems such as the

importation of substandard goods has also contributed to the problem.

The government needs to put in conscious efforts in the implementation

of these policies so as to address these problems.



Land porosity



This is another problem that allows for smuggling into the country.

Many attribute this problem to the large expanse of land in Nigeria

through which smugglers can travel. This problem can be solved through

the approval of more custom posts, the introduction of modern

technology, increase of budgetary allocation so as to purchase

necessary equipment for the land and sea borders that will aid NCS

officials in doing their job well.

















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