NIGERIAN CUSTOMS

Abdullahi (left) with some of his officers

Time was when the name Nigerian Customs Service (NCS) was synonymous with inefficiency and poor customer relations. The new NCS is not only breaking records in revenue generation but has also been rebranded and repositioned as a friendly workplace where customer service is a way of life.

With a population of more than 140 million, Nigeria provides a large market not only to the Economic Community of West African States (ECOWAS) but the world in general. The increased volume of trade coupled with increased drive towards environmental protection has not only posed serious challenges to the Nigerian Customs Service (NCS) but has also over time undermined the inspection efforts of the Service with damaging consequences.

Attempts in the past to shake off the inefficiency and poor image-including even a change of uniform-met a brick wall. Part of the reason for that failure has been attributed to poor leadership and red tape within the Service. Their continuous presence at every 100 metres stretch along some Nigerian highways was like adding fuel to a raging inferno. Add red tape to the picture and it becomes clear why things never really worked at the NCS.

But that was in the past. The new NCS under the leadership of Dikko Inde Abdullahi does not only work but is also seen to be working, thus resulting in a better image. It is surely not for nothing that Abdullahi is reaping accolades as the current Comptroller-General of Customs (CGS), for his leadership has increased the revenue profile of the NCS to new levels; indeed to a record-breaking N36 billion (about US$ 2.4 billion) between September and November of 2009.

Abdullahi, who was appointed CGS last August, is widely recognised as humble but audacious and a workaholic with a listening ear. Fawning over him is not limited to the rank and file of the NCS, it extends even to importers. Within the relatively short period that he assumed office, Abdullahi has effected so many changes: revolutionising operations by providing a framework for ease of business and administration. The Service has also introduced simplified electronics clearance processes with the target of achieving 24-hour cargo clearance. The Customs electronic approach to business transaction through e-commerce, e-transaction and e-payment in line with Automated System of Customs Data, (ASYCUDA) has also helped in no small measure. Another development which has helped to turn things around for the better at the NCS is the increase in salaries and provision of befitting accommodation for officers as part of a new, robust welfare package.

Giving credit to the CG for the revolution at the NCS, G.T. Aliu, the Seme border Customs Area Comptroller (CAC), said: "The rank and file of Customs are particularly happy with him as he has made positive changes in so short a time. For the first time in the history of the NCS, a supplementary budget of N14 billion (about US$94m) has been approved."

Abdullahi is well known for doggedness to bring about radical changes within the Service. This is in line with his vision to "improve my revenue collection far and above what the force is used to collecting." The NCS is also seeking partnership and technical cooperation with international organisations and agencies in order to acquire new skills and knowledge in Customs administration; electronic reforms of operations and improved welfare package and capacity building for all staff.

Abdullahi, however, would not take the credit alone but modestly points out that the Nigerian government, in keeping with its reform agenda, had earlier decided to reorganise and transform the NCS into a modern institution capable of enhancing revenue generation. A Presidential Task Force led by Dr. Bello Haliru Mohammed, a respected technocrat, was consequently inaugurated and charged with comprehensively reforming the NCS.

Abdullahi: 'reforming Customs is very important'

Finance Minister Mansur Muktar while inaugurating the task force said that the repositioning of the NCS would help to facilitate trade, curb smuggling as well as check the importation of illegal arms.

The reform of the Service is considered crucial to the attainment of Nigeria's Vision 2020 -through which it intends to be among the top 20 economies in the world - and the actualisation of the 7-point agenda of President Umaru Musa Yar'Adua's administration in this regard. "In particular, they (the reforms) are important in achieving the objective of economic development, identifying non-oil revenue base, and ensuring national security all of which feature prominently in the 2009 budget," the minister said.

Within two years the Task Force is expected to have reformed and supervised the implementation of an agreed action plan for the structural transformation of the NCS into an efficient, world-class organisation involving an overhaul of governance, organisational and leadership structure, systems, processes and procedures.

The Task Force is also expected to make appropriate recommendations to the Nigerian Customs Service Board on leadership selection, capacity building, recruitment, promotion, discipline, retirement as well as dismissal of erring officers; to draw from international best practices and liaise with relevant government agencies towards a speedy achievement of 48 hours cargo clearance at the sea ports. It is also to make recommendations for the establishment of Technical Committee and Work Groups as deemed necessary.

Apart from leadership challenges, prohibitive tariffs and smuggling had in the past hampered the operations of the Nigerian Customs. While high tariffs are intended to protect local industries they also inadvertently promote smuggling especially when prices of local products are found to be more expensive.

Metche Nwadiekwe, chairman, western zone of Importers Association of Nigeria, told Africa Today: "One of the biggest problems with the Customs is government's inability to carry importers along in policy matters." Nwadiekwe, who has been in the import business for more than 20 years, believes that Customs duties are exorbitant and feels strongly that reduced tariffs would reduce smuggling. That, however, is for the Ministry of Finance to decide, Abdullahi, the Customs Comptroller-General, told Nwadiekwe during one of their several stakeholders meetings.

Another factor that has also served to boost smuggling across Nigeria's borders is the inability of the Nigerian government to fulfill its promise on meeting the energy needs of the country. The energy situation in the country is so appalling that companies continue to fold up or move to better business environments to operate from. In the circumstances, Nigerians live essentially on imported items; from basic household items such as matches and toiletries to all kinds of electrical and industrial equipment. This is unhealthy for the Nigerian economy, say analysts, who have called on Acting President Goodluck Jonathan to concentrate on improving the country's energy sector.

Abdullahi takes a look at copies of Africa Today

Identifying some other reasons for increase in smuggling of goods into Nigeria, Aliu, the Seme Customs Area Controller, said: "The environment is a bit hostile. People don't see anything wrong in smuggling. They don't have fertile lands to engage in agriculture and smuggling for them presents an easy way out of poverty."

Ignorance equally plays a key role. Aliu says it costs less to clear imported goods the same day through Customs than smuggling, explaining that, except for goods under the prohibited list, there is no economic sense in smuggling. He pointed out that the risk involved in smuggling is too costly, noting that smugglers, especially those engaged in the importation of fairly used cars, stand the risk of losing their entire investment if nabbed by Customs officials.

With less manufacturing taking place in Nigeria and increasing reliance on importation, the army of importers has continued to swell by the day and far beyond what the 17,000 officers of the NCS can adequately manage. The leadership of the Service has responded with a staff beef-up, recently posting the latest batch 500 officers to various command posts to monitor smuggling routes.

Indeed, Nigeria's porous borders and limited resources have not in any way deterred the NCS from working round the clock with unbelievable success. For the Seme command, operating in a foreign land imposes certain limitations such as the prohibition of carrying of fire arms. Seme is not a buffer zone but part of the Republic of Benin and one of the busiest routes for both genuine businessmen and smugglers. It is located 200 metres away from the Nigerian boundary. Aliu believes that the newly posted officers will help to patrol the numerous illegal routes that the command has discovered. He disclosed that the command is expecting the delivery of new AK47 rifles but also needs no less than 50 patrol vehicles.

For the NCS, the waterways and creeks provide even bigger challenges. Surveillance teams are on daily patrol of the various foot paths that smugglers use. Numerous seizures of contraband and smuggled items worth billions of dollars have as a result been recorded at Seme and other Customs command posts across Nigeria. Take Tin Can Island, Lagos, for example. In one of his many press briefings, Ahmed H. Aliu, the command's Area Controller, said more than N127.2 million worth of goods were seized between October and December last year. Another example: Apapa Customs Area Command, also in Lagos, the Nigerian economic hub, generated a staggering N153 billion (about US$10.2 billion) last year. Ahmed disclosed that 36 seizures with duty paid value of N220 million (about US$1.7 million) were made at the Lagos Point Complex by the Command's anti-smuggling unit. The seized items were mostly furniture, vehicles, used tires, ammunitions and other concealed items loaded inside containers that were imported into the country. The seizures were made courtesy of the newly installed scanners that have the magnetic propensity of detecting metals no matter where they are hidden. The device also saves man hours.

CGC Abdullahi illustrates a point during the interview with Africa Today

Apart from the scanner, the operations of the NCS are also being boosted by the acquisition of two well equipped helicopters with inbuilt advanced cameras. The NCS Air Wing is expected to complement the ground patrol unit particularly in the aspect of locating and intercepting smugglers nationwide. Similar facilities are also being provided for the Marine Unit, according to Comptroller-General Abdullahi.

In the face of changing international trade dynamics, the NCS has no choice but to reposition itself for the challenges ahead. To this end, a Customs Staff College designed for middle-level manpower is expected to take off this year, with possible technical assistance from the World Customs Organisation (WCO) and the University of Canberra, Australia. At the bi-lateral level, the NCS is collaborating with sister Customs administrations on training. Abdullahi disclosed that as part of the projections for 2010, "30 officers will be undergoing Port Interdiction courses organised by the Customs and Border Protection (CBP) agency of the United States. We are exploring similar opportunities with our colleagues in UAE, Hong-Kong and China."

What with the expansion of international trade and the Nigerian Government's emphasis on revenue generation from the non-oil sector, expectations from the NCS are understandably very high and that, for Abdullahi, is the biggest challenge. The CG is however not intimidated but is determined to create an efficient and functional staff corps that would adequately confront the challenges ahead. The process has started with a computer training programme for over 3,000 officers and men in Lagos, Kaduna, Abuja and Port Harcourt centres. The exercise was followed up with a laptop acquisition programme, in which every interested officer can purchase a laptop subsidised by management up to the tune of 50 percent.

"NCS," says the CG, "has also deployed 5,000 new recruits, jointly trained by the Customs, Police and Army. We are making efforts to develop joint training programmes with the Nigerian Army to raise the level of mental alertness, physical fitness and combat readiness of all officers."

Given the kind of support the Abdullahi administration enjoys from the government, the NCS itself and the public, the CG has every reason to be confident of fully actualising his vision for the Service as he makes good his promise to "raise a new corps of highly motivated, well trained Customs officers that would be responsive to the challenges of a modern Customs administration."