Dr Kayode Farinto is the immediate past acting President of the Association of Nigeria Licensed Customs Agents (ANLCA). In this interview with Oluyinka Onigbinde, he discusses issues about the recent election in his association. He also talks about critical issues affecting the maritime industry.
Have there been any changes in your activities since you left office as the acting President of ANLCA?
It is not that there have been changes. Nothing has changed except that it has reduced my workload. Even when I was the Acting President, my office was still running. So nothing has really changed. It is just that my workload has reduced.
What is your take on your loss of the election?
In every contest, one person will win, one person will lose. I don’t want to use that Nigerian factor when two people are fighting; the other one beaten will say it is because the ground is slippery. There was a contest, I lost and the other party won. That’s just the way God wants it. It is a lesson for any other contest. So I will not apportion any blame. Although there are rumours here and there, I don’t believe in them.
Talking about rumors, some have alleged that you still have grievances with some of your loyalists whom you trust so well.
I don’t want us to talk about beer parlor gist. They will just waste our time. I don’t hold grudges against anybody. Everyone is an adult and everybody will account for his deeds. So whoever sees me and says this is the way he wants to believe, it is up to him. For me, I don’t see anybody as my enemy. I will talk to everybody even till tomorrow. This morning, Joe Sanni called me and we chatted. I don’t have any issue with anybody. I don’t want to start going into all these issues that will cause animosity.
Let’s take a look at the item banned from accessing Forex that the CBN recently unbanned. We’ve seen several mixed reactions over its implications. What is your take on this?
Well, if you have been following me, you will know that I am one of the people advocating that CBN is encroaching on fiscal policies and that CBN does not have power to do what it is doing. I give it to the new CG of Customs. When he came on board, I told him these items under forex restriction are encouraging false declaration. It has reduced our imports by about 30 percent. Now our import has dropped down seriously and we submitted our position to the new government and I am sure within his power, he pursued it. So I give it to him. I also give it to a few of us who actually pursued this issue to make sure that the issue of the 41 items is reversed. Going forward in the next 60 days, I want to see everybody declaring whatever they are carrying, except that person is a perpetual smuggler. So I give it to few of us who have written, made position papers known to this new government, and I give it to the CG Customs who has actually gone the extra mile to meet the finance minister and made sure that these things are reversed because it is also going to affect his job as CG of Customs.
But don’t you think this will further create scarcity of forex?
How many Nigerian importers were able to access Forex abinitio? We are making mistakes and that is why we are not getting it right. Some of the economic drivers of these countries believe in whatever they have learned in their books and they want to implement it. It is not like that. You and I know that they don’t source for Forex in the bank for any import that is not valid for foreign exchange. They source their Forex in the black market. It’s only very few commodities that are valid for foreign exchange where there will be remittances. You can be talking about people sourcing for Forex through the CBN. And CBN will only regulate and look at that particular item. But this issue does not have anything more to do with that. But it should be able to really affect our plans positively. I mean positively in the sense that we will be able to declare. I have a deal that I am now on artificial grass. The man sourced his money in the black market. We remitted the money but we were unable to open Form M and we had almost four or five weeks before we were able to open Form M, because you have to get approval from the CBN. In the four or five weeks that we are talking about now, we have already had new rates on the storage. So, it’s going to really affect our industry positively going forward. Talking about that, all the government needs to do is to look at data. The Customs should give us data on the goods that are valid for foreign exchange. How many people have actually gotten Forex? How many have done their remittances? We also must monitor this.
How will it be possible for those importations to be made vis-a-vis the high rate of dollars and Custom duty?
Before now, if you are bringing in new tyres, you can’t declare new tyres because it is part of the 41 items and if you are bringing in new tyres, it depends on the size of tire you are bringing in. Before I go to buy my new tires, be it truck or commercial vehicle tyre, I should already know the rate of duty and also know whether it’s ‘levyable’ or not. Once I source for my dollars and I remit money, I should be able to open my Form M. But before now, you can’t do that. You will either declare the tyre wrongly or you call it another thing. This is actually encouraging the false declaration. So it’s even going to be better for us in the industry. Talking about forex scarcity, market forces now determine what happens to our forex and if market forces determine it, it’s better for us. Unlike a situation whereby, somebody on a Monday morning gets Forex on official rate, he’s not an importer; he is not adding value to the economy of this country and he sells at black market rate. Those are the people that are killing the economy.
But at the same time, many believe that one way we can strengthen our currency, the Naira, is to increase our export.
Yes, that’s it. There must be a balance of trade for both import, and export. There must be a balance of trade.
Now, some of these products that the ban was lifted-off are products that can be produced here in the country, which we can export. Don’t you think we are going back to square one again?
We are not going back to square one. Everywhere in the whole world, there’s what we call protectionism. We don’t do protectionism and that’s why the government has brought the idea that if anything is produced locally here, we have import adjustment tax, which slams on commodities to protect the local manufacturers. That alone is enough. If after the levies are slammed and you still believe that if you import, it’s better for you than the locally produced one, so be it. But let’s have an open system where anybody can have a free day and there’s no barrier to trade. There shouldn’t be barriers to trade. Before now, during the era of Buhari, we all know what imported rice used to say. But I give it to you now, whether you like it or not, Nigerian-produced rice now is far better, if not better than the European one and the level of consumption and acceptability is higher on a yearly basis and weekly basis. So these are the issues. Let there be competition. When there is fair competition, when you are importing and you realize that the locally produced one is now having competition with your own, and you cannot beat them, nobody will tell you to leave it. That’s how it’s supposed to be in open markets. Not that you are now overprotecting. The people that you are overprotecting, you cannot really protect them. In economic terms, whether you like it or not, it will be affecting the Naira. Naira will be coming lean every day. You need to see the Naira now.
Let’s move to the Customs management. What is your assessment?
Yes, I want to say that is the kind of customs we’ve been longing for; the professionally oriented one and somebody or a team that has risen through the ranks and not bringing in a soldier who doesn’t know anything about customs processes or customs administration to come and man customs. You and I will agree that we’ve never had it so bad in the last eight years. But in the last few months that the CGC has taken over, he has shown to the world and to the nation that he’s a properly oriented officer. Properly trained for the job and he has told everybody that care to listen that trade facilitation is one of his core principles and these are the things we want to be hearing. The technicalities and the technical languages that we’re supposed to be hearing, which has been absent before, is now coming to the front burner. He has also advised Nigerian importers on the need to make sure that we’re patriotic by making sure you declare what you have. He has also removed some barriers to trade. This he did by encouraging and stating to Nigerian importers that the things that are actually making our cargo clearances to make double-time in our seaports. He has also, in line with the WCO, ensured that the CEMA has been passed, so that we can do what is called advance ruling. If you want to bring in this particular calculator from abroad, it’s a new product, and you don’t know how it is classified, and you don’t want to have problems with any customs formation, you just write to them abroad to bring in the product and the sample. That is called advance ruling and once an advance ruling is given, it is binding on Nigeria Customs Service in the next 12 months irrespective of whatever you are bringing, this is part of it. These are the traces or indices of trade facilitation. Going forward, you can also see that he is thinking along our line. He knows that the issue of the 41 items on Forex restriction is encouraging false declaration. Now it has been unbanned, coupled with the fact that he also has input in it, going forward, we would have a situation where the issue of false declaration may be a thing of the past. It will fizzle out gradually. It is going to be like a diffusion. So we are going to very soon, by January, see a situation where we have a true declaration for our customs purposes. Honestly, I give it to him.
The Customs CG has taken some decisions, one of which is the decision about imminent clearing of goods from Cotonou port. Do you think this is a right decision?
It is good. Even though I’m one of those that don’t even like it, because I’m one of those that is clamouring that we should have what is called indigenous clearing and forwarding. There should be a situation where we should be able to protect our jobs from foreigners. What it means is that if it is allowed, I can go to Cotonou port and clear. Invariably, a Benin Republic man can also come to our port and clear. Meanwhile, I’m an apostle of the fact that let us leave clearing and forwarding to the indigenous Nigerians. In a situation where Lebanese and Indians have taken over our job, it is not in the interest of this nation, and it is not assisting us. The teeming youths roaming the streets, coming out of the universities and don’t have anything to do can actually join in. Anyway, it is a welcome idea, because we are going to the African Continental Free Trade Agreement era now. So there should not be a barrier to trade. All you see him doing is that there should not be a barrier to trade. Because when you now say you are confining a particular job to a particular indigenous citizen, it could lead to barriers to trade. But, God save Nigeria, whatever is good for us, is good for us.
What did you think the Customs and the government should do to further lessen the burdens of export flow?
I think the problem we have apart from the fact that it is capital intensive, is that the delay on the export is not encouraging. Nobody wants to fix his money for another 90 days and there is no result. I want to go into Sobo exportation now. I am going to get my Sobo from Kano. Before that consignment or the loaded container moves from Kano to Lagos, it takes two months. If I am on a bank loan, what happens? These are the things the government needs to do and that is why our rail system must be functioning now to complement the roads. If we must succeed in the year of export, the cargo rail must begin to function. That is when it can meet up. If I have a rail and I know I will load my container on the rail, by the next three days it is already in the ports, I won’t have a situation. But, when you load on roads, we have the roadblocks and stoppages. Every state has a way of collecting taxes on consignments that are coming to the country and that is not too good for us. So that is why, if we must earn money on our exports, the government must be thinking along this line. Let us have a very new rail. Bring a new rail line that has supersonic speed. Let it be a cargo rail. I prefer cargo rail than the ones that carry passengers because that is what can add to our economy. We have the opportunity of exporting because there are too many minerals in Nigeria that can be exported. We have lots in the North such as Zamfara state. But when moving them to the ports, the process is too cumbersome. There are delays and there is extortion. Government must see to it. That is how we can have balance of trade and that is the only thing that can straighten the Naira. The government should begin to focus. Now that the Ministry of Transportation has been balkanized, we have a Ministry of Rail now; the Minister should focus on how we can have a cargo rail simply for cargo and movement of cargoes from anywhere in the country; at least two or three times on a weekly basis. You see Naira becoming stronger again. I went as far as investigating Sobo. Sobo will cost me about 25 million Naira to export one by 40-footer container of Sobo. So, if I now go to the bank, say the bank gives me a loan, N25 million and I am unable to pay in 90 days. How do I remain in business?
What is your assessment of the new Minister of Marine and Blue Economy? Many said he is moving at snail speed. Do you agree with that?
It is too early to do that. The man is just coming up and he has not even settled down. I disagree. It is a new ministry that requires infrastructure, delineation and a lot of things. You can’t assess somebody like that. It is a ministry that did not exist before and does not have infrastructure. A ministry that does not even have an office. How can you rate him like that? You can’t rate him until everything is in place. There is no structure, no office. Most of the departments under him have not been delineated. Do not forget that some of the departments are reporting to the Ministry of Transportation and they are still reporting to the Ministry of Blue Economy .I put up a 10 page paper on this to assist the ministry and I have submitted it to them. He cannot be rated for now. Give that ministry one year, before you begin to assess it.
