A critical stakeholders on maritime space is of the opinion that CGC Adewale Adeniyi's beautiful credentials as the best Comptroller General of Customs will be incomplete if he leaves office without revisiting some of the sentimental policies by previous administrations that are affecting trade facilitations for corrections.
In a review on this issue with Alhaji Adetona Mubashiru, the Chairman and CEO of Only God is Wise Nig. Ltd, a Bonded Terminal would want the CGC to revisit some of the government policies on Trade facilitation. It could be noted that a press release written by CGC Adeniyi on December 5, 2016 as the then National PRO of Nigeria Customs Service captioned "FG BANS IMPORTATION OF VEHICLES THROUGH THE LAND BORDERS," had the followings in that short notice that importation of vehicles into Nigeria through the land Borders have been banned by the Federal Government. The prohibition order covers all new and used vehicles.
The Ban was sequel to a presidential directive restricting all vehicle imports to Nigeria Sea Ports only, the order took effect from 1st January 2017. The press release signed on behalf of the then Comptroller-General of Customs, Col. Hammed Ali rtd. did not give reasons for the ban immediately. It was just a presidential order.
This ban brought mixed reactions from Nigerians who saw it as in good and bad move depending on the side they were looking at it and how it favors or disfavors them.
According to Alhaji Adetona, an elaborate discuss on this emergency order said Col. Ali promised that the government may reconsider its decision after the successful implementation of a new initiative by the Nigeria Customs Service and the Customs Service of the Republic of Benin to automate and network all electronic information about incoming cargoes through the border.
The then Comptroller General, Col Ali, who was represented by the Assistant Comptroller General, Information and Communication Technology, Benjamin Aber, at a stakeholders’ meeting on the new initiative, expressed confidence that with a successful implementation of the bilateral electronic connectivity programme between Nigeria and Republic of Benin, the Federal Government might lift the ban on items coming through the land border.
The then CGC said the decision of the government to shut down importation of vehicles through the land borders was because the government did not have a reliable system that would assist in controlling importation among other reasons. "It is nine years since this order took effect but the ban on vehicle importation through land borders failed to solve its intended problems, instead of curbing smuggling or boosting local auto manufacturing, the policy led to increased inflation, massive revenue losses at authorized entry points, and heightened hardship for Nigerians trying to afford transport. "Rather than stopping illegal imports, the ban pushed the trade to hundreds of unapproved, porous bush paths.
The Nigeria Customs Service faced immense difficulties policing these illegal routes. "There were severe revenue losses by forcing trade through inefficient and congested seaports (like the Lagos ports), the government inadvertently lost billions in accruable import duties to neighboring countries, prompting the demand for reopening of key borders like Seme for vehicle transit," Mubashiru said.
It could be noted that the regime of Col. Ali as Comptroller General of Customs came up with a theory of inter-connectivity at Seme border which many of the industry watchers felt could be a solution.
With declarations made for imports transiting from either of the countries (Benin and Nigeria) electronically shared, the process of import and export would be done in a transparent manner and the government seeing such transparency would be convinced to relax its stance on land border importation.
Col. Ali said "vehicles were formerly being imported through the Seme border, but suddenly it was banned because the pressure of enforcement of anti-smuggling for vehicles. When vehicles came through the land border, we did not have a record of how the imported cars came here and fake documentation became a common phenomenon.
The ban was just a control measure against the practice." Mubashiru said Col. Ali's claims were not true because before CGC Abdullahi Dikko Inde left office, there was a bilateral agreement on movement of vehicles on transit to Nigeria through Cotonou port. That with the agreement, all transit vehicle for Nigeria were escorted to Seme border and handed over to Customs Officers at the Vehicle Seat. The only problem by then was parking space and the freight forwarders were therefore advised to process their vehicle documents before arrival at the border. Today, he confirmed that the situation is changed because such a parking space was initiated by the Seme command in preparation to receive these vehicles on arrival.
At Seme today, the terminal can conveniently accommodate more than a thousand vehicles. It is therefore very expedient that before CGC Adeniyi MFR, PhD should leave office, there should be a revisit to this international trade anomaly. According to World Trade Organisation WTO convention, trade regulations and amendments with regard to restriction and reversal of Fiscal Policy on Trade, must be subject to process of consultation by trading public and transparency in the timing, in order to accommodate the challenges that will be associated with the directive or regulation. He recollected that all the stakeholders including the National Assembly that agitated for a reversal of the obnoxious policy suspected that nothing could happen considering the fact that Col. Ali and the then President Buhari militarized the issue. The Senate therefore opposed the ban on importation of vehicles through Land Borders by issuing the Nigeria Customs Service directive to suspend, with immediate effect, the policy of an outright ban on vehicle importation through land borders.
However, major car dealers in both new and used vehicles who did not want their names mentioned for fear of backlash from government knocked the policy saying that it will have devastating impact on ordinary Nigerians and the economy. The dealers also noted that the decision was also taken in the interest of a small segment of the auto industry claim to be auto manufacturers but in fact are not manufacturing any cars in Nigeria. Alhaji Mubashiru therefore considers the present leadership of Nigeria Customs Service as an arbiter to advise the Federal Government to revisit and lift this ban. "CGC Adewale Adeniyi MFR, PhD, you came, you saw and you have conquered. Your numerous visits to Seme border kept elevating the spirit of critical stakeholders at the border that a bilateral agreement on lifting the ban on importation of vehicles through the land border would take place. "Vehicle importation through the land border created employment opportunities for many youths who are now on the streets causing trouble.
These youths come to Seme border on daily basis and do some auxiliary jobs; they return home with some money with which they take care of their respective families. "Apart from these people, there are still many artisans whose vocations connect with vehicles. We are talking of panel beaters, rewires, mechanics, painters, drivers and others. These people were also affected by the policy because their business and their survival exist side by side. These are law-abiding citizens who always support government policies but this one should be given another look," Mubashiru said.
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