Land Border Ban On Vehicle Importation Fueling Smuggling, Revenue Losses – Operator

A maritime operator, Alhaji Adetona Mubashiru, has called on the comptroller general of the Nigeria Customs Service (NCS), Adewale Adeniyi, to revisit the federal government’s ban on vehicle importation through land borders, arguing that the policy has worsened smuggling and deprived the government of huge revenue.

Mubashiru who is the chairman of Only God is Wise Nigeria Limited, said the 2017 policy restricting vehicle imports to seaports failed to achieve its intended objectives and instead pushed the trade into illegal routes across porous borders.

The ban, announced by the Nigeria Customs Service on December 5, 2016, under the administration of former comptroller general of Customs, Col. Hameed Ali (rtd), took effect from January 1, 2017. It prohibited the importation of both new and used vehicles through Nigeria’s land borders following a presidential directive.

According to Mubashiru, who also operates a bonded terminal at the Seme border corridor, said rather than curbing smuggling and improving monitoring, the restriction encouraged the use of bush paths and unapproved routes by smugglers, thereby making enforcement more difficult for Customs officials.

He noted that the policy also led to severe revenue leakages as importers diverted cargoes to neighbouring countries, particularly the Benin Republic, while Nigeria lost import duties that could have accrued through legitimate border operations.

“It is nine years since the order took effect, but the ban on vehicle importation through land borders failed to solve its intended problems. Instead of curbing smuggling or boosting local auto manufacturing, the policy led to increased inflation, massive revenue losses and hardship for Nigerians trying to afford transport,” he said.

Mubashiru recalled that the former Customs leadership had promised that the policy could be reviewed upon the successful implementation of an electronic connectivity programme between Nigeria and the Republic of Benin to track cargo movement and improve transparency in transit operations.

He argued that before the ban was introduced, there was already a bilateral arrangement between Nigeria and Benin Republic for the movement of transit vehicles through the Cotonou port into Nigeria, with Customs officers escorting such vehicles to the Seme border for proper documentation.

According to him, concerns over inadequate parking space at the border, which was one of the operational challenges at the time, had since been addressed, noting that facilities at the Seme border can now accommodate over 1,000 vehicles conveniently.
The terminal operator further stated that reopening the borders to vehicle imports would revive economic activities and create employment opportunities for thousands of youths and artisans whose livelihoods depended on the trade.
“These youths used to engage in lawful auxiliary jobs around the border and earned income to support their families. Mechanics, painters, panel beaters, drivers and other artisans were also affected because their businesses depended on vehicle importation activities,” he added.
Mubashiru also urged the current Customs leadership to advise the Federal Government to reconsider the policy in line with global trade facilitation principles advocated by the World Trade Organisation (WTO), stressing that trade restrictions should involve adequate stakeholder consultation and transparency.
He commended Adeniyi for his engagement with stakeholders and expressed optimism that the present Customs administration could facilitate discussions that may eventually lead to the reopening of land borders for vehicle imports.