Addressing Smuggling and Automation in Nigeria Customs Service
The House of Representatives has urged the Nigeria Customs Service (NCS) to intensify efforts in curbing the smuggling of petroleum products into neighboring countries. This directive was issued during a review of the NCS’s 2023-2025 revenue generation, held in Abuja under the supervision of the House Committee on Finance, chaired by Rep. Abiodun James Faleke.
Dr. Adewale Adeniyi, the head of the NCS, acknowledged the challenges posed by smuggling. He emphasized that the service launched Operation Whirlwind to prevent the diversion of oil resources. However, he noted that the issue persists due to the higher prices of oil in neighboring countries, which creates an economic incentive for smuggling.
Ongoing Efforts Against Smuggling
Dr. Adeniyi explained that while Operation Whirlwind was initially intended as a short-term measure, it had to be extended due to ongoing challenges. He highlighted that areas such as Adamawa, Kwara, Borno, and parts of Kebbi remain problematic. The NCS is committed to improving its operations and increasing the effectiveness of its special operations to enhance seizures of smuggled goods.
He also addressed the level of automation within the NCS. Dr. Adeniyi confirmed that the service is fully prepared to implement automation processes. Key areas such as pre-arrival documentation, payment of customs duties, transmission of manifests, and declarations have already been automated. He estimated that approximately 60-70% of the system is automated, but challenges remain due to the need for coordination with other stakeholders.
Advancements in Automation and Technology
The NCS has successfully interfaced with major stakeholders, including shipping companies, terminal operators, customs agents, banks, and government agencies. This collaboration has enabled the service to achieve a direct handshake with these entities, supporting the rollout of the national single window system.
However, Dr. Adeniyi pointed out that technology is continuously evolving. The NCS is exploring the integration of artificial intelligence (AI) into its scanning systems to enhance detection capabilities. This development underscores the dynamic nature of technological advancements and the need for continuous improvement.
Revenue Generation and Fiscal Challenges
Lawmakers acknowledged the potential for increased revenue through full automation of the NCS system. They also emphasized the importance of strengthening cybersecurity measures to protect against infiltration, given the reliance on AI and other technologies.
Dr. Adeniyi highlighted the N13 trillion revenue target, noting that the current fiscal policy has led to a loss of N3 trillion due to the non-collection of certain taxes. These include the General Importation and Processing Tax (GIPT) on telecoms, reusable plastic (PSP), and excise duties on bi-carbonated products and soft drinks. He explained that these taxes were suspended following complaints from stakeholders.
Enhancing Collaboration Among Agencies
Dr. Adeniyi stressed the importance of collaboration among regulatory agencies, particularly in aviation security. He cited his experience as a Controller of the airport, where he witnessed the significance of synergy between agencies. The challenge of territorialism has been a historical issue, but the NCS has made progress through cooperation with the Financial Action Task Force (FATF).
The NCS has worked closely with the FATF to address issues such as scanner placement and currency declaration, which are critical for maintaining compliance with international standards. These efforts have contributed to Nigeria’s removal from the Grey List, indicating improved coordination and alignment among agencies.
Conclusion
The NCS continues to face challenges in combating smuggling and implementing automation effectively. However, through persistent efforts, collaboration with stakeholders, and investment in technology, the service aims to achieve its goals and contribute to Nigeria’s economic growth.
