Comptroller Ajibola Odusanya is the Customs Area Controller (CAC) in charge of the Lilypond Export Command of the Nigeria Customs Service (NCS). Recently, he met with some maritime journalists. Yinka Onigbinde was in attendance. Here he recalls some of the interesting issues that came up.
· “Once Goods Are Cleared At Lilypond, No Other Officer Or Unit Will Stop Them”
· “Export is increasing, and we are constantly working to ensure efficiency”
Can you give us a background of your command and what it has achieved so far?
The Lilypond Export Command was created in 2022 and was initially headed by Comptroller Babandede. At the time of its creation, the command handled only export, but it was not the sole export command. Other commands around the port were still handling part of the export goods, such as in Apapa, Tin Can, PTML, and even Lekki. Due to the directive from the government through PEBEC and other pressures from other government agencies like the Nigerian Export Promotion Council and the Nigerian Ports Authority (NPA), there came a Memorandum of Understanding (MoU) between the NPA and the Nigeria Customs Service (NCS) to streamline all export processes under one command. Hence, in July 2024, the Lilypond Export Command became the sole export command for sea-bound exports in the Southwest ports.
From January to December last year, we processed approximately $1.9 billion worth of goods. It was close to $2 billion that the command was able to facilitate. That figure was boosted by the collapse of the terminals into one, and had it occurred earlier than July, we would likely be talking about $3.7 billion or even $4 billion. We hope to surpass that this year. For the period between January and February, I have the record for February here exports worth $225,131,597.39. January had a similar figure, although I don’t have it with me right now. All these achievements were made possible by collaboration with other government agencies and maritime stakeholders, including the media. When policies are set, you people help disseminate the information to exporters and other stakeholders. When Customs took the lead in making Lilypond an exclusive export command, other agencies also dedicated officers to export duties within our command. Now, we have the DSS, NDLEA, Quarantine Services, and other agencies working with us.
That sounds like a significant restructuring. Has it improved efficiency?
Absolutely, before this arrangement, goods processed by one agency at Lilypond were still being stopped by the same agency at other ports like Apapa or Tin Can. For example, if the NDLEA cleared a container at Lilypond, another NDLEA officer might still stop it at the port; the same applied to Customs enforcement. There are times before the collapse, when export goods were processed by Lillypond and were moving to the port, Apapa export seat officers and their enforcement would still be stopping those goods, either at the gate or maybe inside the port. The same thing also happens in Tin Can. But now, we don’t have anything like that. Now, with the collapse and synergy, once goods are cleared at Lilypond, no other officer from that agency or unit will stop them en route to the port unless there is an extreme necessity based on intelligence. Export goods treated by Lilypond getting their ETO to enter the port, will only be checked by Lilypond officers at the gate to confirm that it has been duly treated in the office. And in that checking, it is not that they will open the container, unless it is extremely necessary, maybe based on intelligence or whatever. Everything is now automated. When you get to the gate or at the jetty, officers just check the record online to verify clearance. The same process applies to export goods arriving by barge. This has sanitized and automated the export process, ensuring goods move seamlessly into the port. Last year, I think we had about nine or 10 containers of wood, that they just moved it from one random place and entered, not knowing that our officers are at the jetty there to check every good coming into the port. So, the place is so sanitized and automated that export goods now just move seamlessly into the port, either through road or through water.
That’s impressive. What are the challenges faced at the command?
One major issue is the Electronic Call-Up System (ETO). If you go to Lilypond now, you will see a lot of containers there. People unfamiliar with our process may assume that Customs is delaying these containers, but that is not the case. The issue lies in the logistics of moving them to the port.
For instance, on the import side, we have fast-tracked goods that require an escort officer before they can leave the port. Sometimes, these goods are already lined up on trucks but are still waiting for an escort officer. This creates congestion, as new export goods cannot enter the port due to a lack of space. We are working with the NPA to maintain sanity. Containers remain in Lilypond when there is no available space in the port. This prevents the chaotic situation we had about four or five years ago when this whole area was a mess. Back then, the Apapa port corridor was blocked, and access to offices around here was almost impossible. But with the introduction of ETO, things have improved significantly.
I remember I was in Apapa at that time when they were putting this thing together. I was the DC Admin there. We had so many meetings, before we could get this port corridor cleared of the madness around that. And I know around that period, many people got tired of this Apapa that they moved out of Apapa. Even on this road, you will see containers, motor boys, touts and see so many things happening around here. But we thank God that at least sanity prevailed at the end of the day.
Those containers you see at Lilypond don’t have anything to do with the customs. They are already treated at their various Domestic Export Warehouses (DEW) and other areas where our officers have already assigned them. We have done everything. It is just the ETO that is making them to stay there, because there is no space for them to enter inside the port. If those fast-track containers and other containers that are supposed to exit the port don’t go out of the port, there will be no space for some to enter the port. Some may not understand, because when you are passing through that bridge, you see a lot of containers in Lilypond. If you do your investigation, none of them will tell you they have any customs issue. All those containers are there just because of ETO and other logistics inside the port.
That said, there is still work to be done, especially in addressing the backlog caused by logistics and ensuring smooth movement of containers into the port. Most of our exports go through Apapa because it has more ships than any other port. Tin Can also has export processing terminals, but it does not handle the same volume as Apapa but they don’t have any delay unlike Apapa.
Do you have the required space for exports at the terminal?
Recently, I haven’t heard of major issues apart from occasional complaints about space inside the port. At times, when you visit Lilypond, you may not see more than 10 or 20 containers. The main problem now is that import congestion is delaying the movement of exports into the port and also lack of space. Another issue we face is with truck drivers. Our office is in the Diamond Star EPT. Sometimes, Diamond Star tells us that many of the containers there already have their ETO, and the exporters have been called to move them, but the truck drivers refuse to go. Why? Some of them deliberately delay until they have a TDO to pick up import cargo. They don’t want to drop an export container without picking up an import in return. Some drivers even park and travel. When asked, they say they have a ceremony to attend. These are some of the crazy things we deal with. But when people see delays, they immediately assume its Customs, even when there’s no single container held by us.
What are your thoughts on the future of export operations at Lilypond Command?
Now that we have so many government agencies are domiciled with us there, this will help in facilitating this export business or export trade. This is because when we do that, it will make Nigerian goods very competitive in the international market. I can say that my own experience on the job has shown that export now is increasing. Export is increasing, and we are constantly working to ensure efficiency. With the presence of multiple government agencies dedicated to export processes, Nigerian goods are becoming more competitive in the international market. Our goal is to continue improving the system to facilitate seamless export trade. We are counting on you to also help us reach out to the public that processing of export now is totally seamless with Lilypond export command. We don’t delay our jobs, and I don’t allow any extortion from anybody. I have warned my officers that are at the gate of various entry points, that they are not there for the checkpoint. They are there to crosscheck goods trying to enter the port; goods that have been processed by the command.
Now, on the Nigerian Export Proceed (NXP) issue, what is the latest update?
Some of you who are close to us would have observed that we had some issues about three or four weeks ago, which led to us organizing an emergency meeting. Our exporters were facing issues in satisfying the new conditions brought about by the NPA condition precedent to issuing ETO. NXP, as you know, is to exports what Form M is to imports. If you understand it that way, you will see that by the time you are applying for approval of your Form M, your container or mode of transport is not yet stated. It is only the cost of your item, the agreement between you and the supplier that will be on that Form M. Once it is approved by customs, you later come back with your final documents—bill of lading, certificate of origin, valuation, and other necessary permits. It is at that stage that we will see your container details. But now, the NPA is saying they have an understanding with the CBN that NXP must be attached to the application for ETO. However, on the customs side, we are telling them that NXP does not contain container numbers at that stage. It is only when the NXP is approved that they go to Inspection Agent, and that is when they get the CCI, which is almost like PAAR in imports. At that stage, you will see the mode of transport, the container number, and other details.
The issue now is that NPA is insisting that NXP should contain container numbers before ETO can be issued. Exporters are saying this is not possible because the NXP does not contain container numbers until the CCI stage, which happens later. If exporters have to wait for container numbers at the NXP stage, they may miss their shipping schedules. Some shipping companies require that containers be inside the port at least a week before the ship arrives. If they don’t meet that deadline, the ship won’t take their cargo. So, we need NPA to understand this. Also, it’s important to note that not every export requires PAAR. For instance, personal effects and repair-and-return items do not have NXP because they are not repatriating any money back to the country. When NPA brought this new requirement, I assembled my officers and transport personnel in charge of ETO to devise a way to handle non-commercial exports. Now, for non-commercial exports, they come to our office, we certify them, and we send online information to the TTP so they can process their ETO without issues. For exports requiring NXP, we have advised the relevant agencies to return to the drawing board and find a way to balance the needs of exporters with the realities of the process. Container numbers are not available at the NXP stage but only at the CCI stage. If exporters have to wait until the CCI stage, they may miss their shipments.
The NPA meant well, but they did not fully understand customs procedures. NXP is simply about the repatriation of proceeds. If we can ensure that export proceeds are repatriated, it will help stabilize and strengthen our currency. I have advised them to go back to the drawing board and refine their approach so that it does not negatively impact exporters, the very people they are trying to protect.
