Insecurity Affecting Our Revenue Collection – Customs

Comptroller-general of the Nigeria Customs Services, Col. Hameed Ibrahim Ali (rtd) has said heightened insecurity in Nigeria’s border communities and government approved routs is significantly affecting the level of revenue for government.  

The CG said the fragility of the entire Northeast – from Yobe to Mubi that resulted in the dismantling of all existing Customs posts for collecting revenue and facilitating trade through Katsina where some of the outposts are being burnt to Idiroko in Ogun State, the amount of revenue generation by Customs has dropped significantly.  

He blamed the inability of the service to meet its target on the fragility of the borders. The NCS generated N2.5 trillion out of the N3.1 trillion revenue target set for it in 2022. 

“Of course, the revenues we are supposed to collect from those government approved routs are no longer coming. First, it affects the work we do. And then, most importantly, it reduces the amount of revenue we ought to have collect,” Col. Ali said.

He made the disclosure yesterday at a press briefing to mark the end of the three-day global conference entitled “Enabling Customs in Fragile and Conflict-Affected Situations” that was organized by the World Customs Organization (WCO), in cooperation with the Nigerian Customs Service in Abuja. 

He stated that the fragility of the borders is also affecting its ability to raise more revenue for government, saying anytime that happens, Nigeria loses a trend of trade facilitation. “Therefore, within that period, whatever we are supposed to collect probably will not come, and the smugglers will have a field day.” 

Speaking during the briefing in Abuja, WCO Secretary-general Kunio Mikuriya said participants at the Abuja conference agreed on an action plan address issues affecting fragile borders, making it impossible for Customs to operate properly owing to the insecurity created by non-state armed groups. He acknowledged that insecurity and disruption of the State’s administration affect the border economy and the livelihood of border communities.

To effectively implement the African Continental Free Trade Area (AfCFTA), Mikuriya said African countries have to clearly get it right with border positions, digitization of the borders and security of the border areas.

Part of the initiative is to have one African market and boost African trade. According to him, what is important is that border positions is well harmonised. He said WCO is helping the continent to adopt global standard on that.  

“Try to make sure that border position is really simplified and improve investment friendly. At the same time, I advise that industry strategy is also necessary.  

“Also, for facilitation of trade, electronic digitalisation of border position is necessary.

By that he said not only one country but all the neighboring countries ensure digitalisation of their borders.  

“Everyone should be interested in illicit trade because if illicit trade remains, competitiveness is hard. They should all make sure that illicit trade is rarely condoned, which he said could mean a leakage to the security area,” the WCO secretary stated.