At a recent media chat, the Chairman of Seme border Chapter of Association of Nigerian Licensed Customs Agents (ANLCA), Barrister Bisiriyu Lasisi Fanu spoke on the ban on importation of vehicles through land borders. He also cautioned the federal government on the dangers inherent in the policy. He cautioned that the policy would affect revenue generation by customs commands at the various borders and other sundry issues affecting trade facilitation. Our Correspondent Roland Ekama was at the event.
“High rate of smuggling activities take place on daily basis at the seaports in the form of wrong declarations, concealments, under valuation, and carrying consignment without paying any duty”
Will you say that the ban on importation of vehicles through land borders is a curse or a blessing to members of your association and Nigerians in general?
It is by divine providence that Nigeria is located at the Gulf of Guinean, surrounded by Francophone Countries like Republic of Benin, Niger, Chad and Cameroun. Nigeria’s socio-economic and political policies affect other countries in the ECOWAS sub-region and should therefore be in tandem with ECOWAS treaty on free movement of goods and persons: trade facilitation, Economic Integration and development of trade within the ECOWAS Sub-region and geared towards improved living standards for her citizenry and immediate neighbours.
The decision by the Federal Government of Nigeria to ban importation of used and new vehicles through the land borders on 5th Dec 2016, will adversely affect the wellbeing of about 500,000 Nigerians and several other Nationals that are involved in legitimate businesses and trade facilitation along Lagos – Abidjan Corridor. Importation of vehicles through this route has indeed created employment opportunities like driving, small scale trading, food vending, freight forwarding, customs licensed brokerage related businesses, insurance and allied businesses.
The Association of Nigerian licensed Customs Agents (ANLCA) will continue to advise the Federal Government of Nigeria to re-consider the ban on importation of vehicles through the land borders for empirical reasons: one -vehicle importation through the land borders has provided employment to over 5000,000 Nigerians, which is a blessing to Nigerians who would have ordinarily been roaming the streets due to massive unemployment situation in the land. Secondly, Nigerians have so easily forgotten that such policy in the past had led to serious revenue leakages and massive smuggling along the border areas and there was concomitant wastage of both human and material resources in that regard. President Olusegun Obasanjo in 1999 immediately after his election reversed and changed that policy by opening the land borders for duty payment which has consistently improved the revenue collections on vehicles. Again, not only that we wasted material resources, we also lost human capitals; men and officers of the Nigeria Customs Services, Immigration services, Nigeria Police and other Services will lose their personnel in the hands of smugglers while the policy lasted.
Do you think customs and other relevant agencies have the wherewithal to out-shine smugglers?
These smugglers are more sophisticated than the agencies that are entrusted with the responsibility of enforcing this policy. Remember that rice importation was banned through the land borders sometimes in March 2016, yet we still have assorted imported and smuggled rice in Nigeria markets including the obnoxious plastic rice. How these products that would have enhanced our revenue base, through appropriate duty payment get into the country is yet to be imagined. Preliminary investigations showed that these products are being concealed in fuel tanks, cement trucks, and vehicles engine etc, to evade the law and even contaminate the products before they get to the final consumers. There are thousands of unapproved access routes through which these consignments including vehicles enter Nigeria. At present there is a measure of compliance that one can go to the designated customs vehicle seats or revenue office of the Nigeria Customs at the border areas and pay his or her duties on vehicles. Once this policy is enforced, all unapproved access routes will be activated by smugglers and smuggling will increase tremendously.
Do you foresee revenue drop by the Seme customs command as a result of this new policy ?
Nigeria Government generates enough revenue on vehicle importation through the land borders; Seme Customs Area Command alone generates above N600, 000,000.00 monthly on vehicles duties. This figure was undoubtedly part of the projected budget for 2016 and if proper measures are in place, we should not be talking of borrowing N30, 000,000,000.00 to fund this year's budget.
What would you say are the disadvantages of the ban on importation of vehicles through land borders?
Federal Government is unwittingly trying to ignite another form of crisis along the border areas in South West, North Central and North West, where smugglers will do everything to carry out their dastardly acts of terrorism. Sabotaging the economy as we are currently experiencing in the South- South with the militants blowing up oil installations and Boko Haram insurgency activities in the North East, we may be having too many troubles on our hands to contend with at the same time. It is not all Nigerians that can travel to America and Europe to buy their choice vehicles. You can cross over to Republic of Benin to buy a vehicle, complete that transaction within four days and have the vehicle in Nigeria with duty fully paid. We have reported cases of scam, where people remit money abroad for a vehicle and ended up falling victims of 419 or receiving a vehicle that is below their expectation. Smuggling activities at Nigeria seaports are equally high; high rate of smuggling activities take place on daily bases at the seaport in the form of wrong declarations, concealments, under valuation, carrying consignment without any duty. World Customs Organization (WCO) has stated it clearly that no country in the world today can totally eradicate smuggling but with necessary structures in place, it should be able to reduce it and its adverse effect on the economy. No country is totally independent and self-sufficient; we need each other for socio-economic growth and survival, Nigeria is not an exception. Our neighbouring countries joined forces with Nigerians in the fight against terrorism and insurgency in the North East and if we stop importation through the land borders, would they be willing to extend hands of fellowship to us in time of need? If there are violations of certain understandings, such as the MoU between the Federal Republic of Nigerian and Republic of Benin on cross border issues, signed on Friday 15th August, 2003 at Badagry, ECOWAS Treaty, Protocols and Agreements with our neighbouring Countries, we are in a better position to enforce their full and strict implementation. Nigeria was well represented at a seminar in Ghana in 2012, involving five Nations: Nigeria, Ghana, Republic of Benin, Togo and Cote d’Ivoire, on WCO data model. Nigeria ought to have built and created enabling environment for its implementation which would have introduced safety and secured border operations on movement of persons, goods and services transiting within this corridor in West Africa. The WCO data model was to harmonise data and create single electronic structure for more effective exchange of information between exporting nation port of loading and port of discharge. With this, no consignment will leave the country of loading without transmitting all necessary information electronically to the relevant Authorities at the country of discharge, if this is fully implemented, revenue leakages will be reduced drastically across the borders. The Federal Government should therefore consider our appeal and appreciate the plights of our citizenry that would be rendered jobless, thereby increasing their sufferings and those of their individual households, should the ban be allowed to hold.
Do you support an extension date for the implementation of the policy?
A grace period of three months would have been more appropriated to enable vehicles on board ships to berth for clearance, if actually this Government with all her electioneering promises is still bent on going on to implement this inhuman policy.
Discussion about this post