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Tag: customs

  • Customs FX rate for import duties drops to N1238/$

    Customs FX rate for import duties drops to N1238/$

    The Nigeria Customs Service (NCS) has again adjusted the foreign exchange (FX) rate for duties to N1, 238.17 per dollar.

    This represents a 6.8 per cent decrease compared to N1,246.66/$ displayed on April 8.

    The rate adopted by customs was observed yesterday.

    It fell below the official foreign exchange rate, which closed at N1,248.5/$ on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

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    The drop in the FX rate for customs tariffs and duties is coming amid the Central Bank of Nigeria‘s (CBN) effort to stabilise the naira.

    On Monday, the apex bank announced the sales of forex to the bureau de change (BDC) operators at the rate of N1,101/$.

    The bank reduced its rate for dollar allocation to BDCs from N1,251/$ announced on March 25.

    To further strengthen the naira, the financial regulator also directed all banks to stop the use of foreign currency-denominated collaterals for naira loans.

  • Apapa Customs rakes  N489bn revenue

    Apapa Customs rakes  N489bn revenue

    The Apapa Command of Nigeria Customs Service (NCS) has disclosed that it recorded N489,614,095,022.15 as total revenue for the first quarter of 2024.

    The revenue figure according to the Customs Area Controller (CAC) of the Command, Jide Jaiyeoba is more than a hundred per cent higher than the N212.5b collected during the same period in 2023.

     Comptroller Jaiyeoba  commended men and  officers as well as other  stakeholders of the Command for their cooperation towards the attainment of the revenue feat.

     The Controller reminded his men that the Apapa Command has a critical role to play in the attainment of the N5.7tr annual revenue target of the NCS in 2024.

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    He noted that the almost N 2 trillion revenue target of  command was achievable  through diligent compliance with the operating standard procedures of the Nigeria Customs Service Act (NCSA) 2023.

    Jaiyeoba added: “I want to urge all stakeholders in Apapa Port to keep supporting us in achieving an efficient system where everyone plays by the rules to achieve smoother, seamless, and faster import/export cargo clearance

    “Making honest declaration puts the declarant at a vantage position to have a credible reputation and enjoy the benefits that come with earned integrity such as fast track and possible migration to the authorised economic operator(AEO).”

  • Customs raked in N1.34tr in Q1

    Customs raked in N1.34tr in Q1

    The Nigeria Customs Service (NCS) said yesterday that it generated a total of N1.34 trillion revenue into the Federal Government coffers in the first quarter (Q1) of this year.

    Its Comptroller-General, Bashir Adewale Adeniyi, made this known during Q1 operations review in Abuja.

    According to the CGC, the amount represents a substantial increase of 122.35 per cent compared to the same period last year.

    Adeniyi identified non-compliance with regulations, infrastructure limitations, and a notable decline in cargo throughput, evidenced by a 4.89 per cent decrease in the volume of transactions handled as some of the challenges confronting the Service.

    He also identified the significant fluctuations in exchange rates applied in the Customs clearance of consignments that are posing considerable difficulties.

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    On protocol, the exchange rate utilised by Customs in the clearance of goods via the Nigeria Integrated Customs Information System (NICIS), he said, is based on the rate determined by the Central Bank of Nigeria (CBN).

    He noted that the Service is perfecting arrangements with the apex bank to stabilise the exchange rate for import declarations, further enhancing predictability and facilitating trade.

    Despite these challenges, Adeniyi said the Service is steadfast in prioritising transparency and accountability in its operations, reaffirming their dedication to serving with integrity and excellence.

  • Nigeria Customs Service generates N1.3trn in first quarter 2024 says C-G

    Nigeria Customs Service generates N1.3trn in first quarter 2024 says C-G

    The Nigeria Customs Service (NCS) says it generated more than N1.3 trillion revenue in the first quarter of 2024.

    The Comptroller General (C-G) of NCS, Adewale Adeniyi, made the disclosure while briefing newsmen on its activities in the first quarter of 2024, on Wednesday in Abuja.

    “The total revenue collected during this period amounted to N1,347,675,608,972.75.

    “The collection for the first quarter represents a substantial increase of 122.35 per cent compared to the same period last year, where N606,119,935,146.67 was collected,” he said.

    Adeniyi explained that the month-by-month analysis illustrated the service’s impressive growth trajectory in Jan. 2024, where it recorded revenue of N390,824 billion, an increase of 95.6 per cent compared to that of Jan. 2023 of N199.81 billion.

    He added that in February, the service recorded 138.68 per cent growth and in March, 132.76 per cent compared to 2023.

    The C-G said that the service, within the  quarter under review, recorded 572 seizures of various items valued at N10.59 billion in Duty Paid Value (DPV) and 22 suspects were arrested.

    According to him, rice constituted 39 per cent of the seizures, followed by petroleum products at 26 per cent, with motor vehicles and textiles accounting for nine and six per cent respectively.

    He said that the service was determined to address smuggling and harassment of its personnel during operations in border communities through strengthened anti-smuggling strategies with innovations such as Geographic Information System.

    “One notable initiative is the integration of geospatial technology alongside the utilisation of satellite imagery and Artificial Intelligence tools and techniques.

    “These efforts were initiated upon my assumption  of office to combat the longstanding issue of smuggling and enhance the NCS’s enforcement capabilities for effective monitoring of our extensive 4,000 km borders.

    “Additionally, this initiative will establish a Command and Control center to monitor activities along our borders comprehensively,” he said.

    Adeniyi noted that even though customs recorded a decrease in the volume of import transactions in the first quarter, it was working toward streamlining its trade processes to address bottlenecks and optimise its efficiency across ports for seamless trade transactions.

    He said that the service also recorded several systemic challenges related to non-compliance with regulations, infrastructure limitations, and significant fluctuations in exchange rates applied in the clearance of consignments.

    Read Also: Customs urges importers to regularise import duty in 90 days

    The NCS boss explained that in the first  quarter 2024, Central Bank of Nigeria (CBN) directed 28 rates, and such fluctuations resulted in an average applied exchange rate of NGN 1,314.03 per one dollar in the clearance of customs goods during the quarter.

    He explained that the fluctuations affected and disrupted the activities of its stakeholders and the potential of its revenue.

    Consequently, Adeniyi said that the NCS,  with the support of the Minister of Finance, has initiated periodic consultations with the CBN to mitigate the potential impact of exchange rate fluctuations on import activities.

    (NAN)

  • NCSCN hails FG, Customs over 25% penalty on imported vehicles

    NCSCN hails FG, Customs over 25% penalty on imported vehicles

    The National Civil Society Council of Nigeria (NCSCN) has commended the Federal Government and the Nigeria Customs Service (NCS) on the initiation of a 90-day window for the regularisation of import duties on specific categories of vehicles, effective from March 4 to July 5, 2024.

    The commendation was made on behalf of the Civil Society Council by the Executive Director, Blessing Akinlosotu, in the wake of a statement by the Nigeria Customs Service signed by Abdullahi Maiwada, a Chief Superintendent of Customs and National Public Relations Officer for Comptroller General of Customs on  March 22,  2024.

    Parts of the statement reads: “NCS under the directives of  Minister of Finance and Coordinating Minister of the Economy, took this step to ease economic hardship and encourage compliance, by approving the suspension of the 25% penalty previously imposed in addition to import duty on improperly imported vehicles.

    “Stakeholders, including vehicle owners, importers, and agents, are encouraged to seize this opportunity to regularise import duty payments within the designated 90-day timeframe.”

    Read Also: Customs urges importers to regularise import duty in 90 days

    “This is another highly commendable gesture by the Government of President Bola Ahmed Tinubu GCFR, through the Federal Ministry of Finance, and the Nigeria Customs Service to cushion the hardship on Nigerians as a result of the global economic down-turn.

    Reacting, Akinlosotu said: “The Nigeria Customs Service under the new Comptroller General, Mr. Bashir Adewale Adeniyi has given unprecedented human face to the Service, of which the Civil Society Council deeply appreciates as the conscience of the citizenry and voice of the masses.

    “This waiver and removal of penalty charges will go a very long way in boosting individual and organisational business economies, while having a positive ripple out effect on families. With more of such strategic interventions coming from the Minister of Finance and the NCS, our Council believes the present nationwide hardship would be remarkably ameliorated in no distant time”. The Executive Director continued.

    “The Civil Society Council hereby specially thank President Bola Ahmed Tinubu GCFR, appreciate the Honourable Minister of Finance, Wale Edun and commend the Comptroller General of Customs, Bashir Adewale Adeniyi for this development, while we call on the citizenry to exercise more patience, being rest assured that the current economic hardship shall drastically reduce, considering the numerous interventions being roled out by the Federal Government, especially by the Federal Ministry of Finance and the Nigeria Custom Service”. 

  • Customs urges importers to regularise import duty in 90 days

    Customs urges importers to regularise import duty in 90 days

    The Nigeria Customs Service (NCS) has urged importers, vehicle owners to take advantage of the 90-day window initiated by the Federal Government to regularize their import duty on specific categories of vehicles.

    This is coming on the heels of the cancellation of the 25% penalty on improperly imported vehicles.

    NCS National Public Relations Officer, Chief Superintendent, Abdullahi Maiwada made this known in a press statement at the weekend.

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    He said, “Stakeholders, including vehicle owners, importers, and agents, are encouraged to seize this opportunity to regularise import duty payments within the designated 90-day timeframe.”

    Maiwada said “The Nigeria Customs Service (NCS), under the directives of the Honourable Minister of Finance and Coordinating Minister of the Economy, has initiated a 90-day window, effective from 4th March 2024 to 5th July 2024, for the regularisation of import duties on specific categories of vehicles.

    “To ease economic hardship and encourage compliance, the  Minister and Coordinating Minister of the Economy have approved the suspension of the 25% penalty previously imposed in addition to import duty on improperly imported vehicles.”

  • Customs champions authorized economic operators

    Customs champions authorized economic operators

    The Nigeria Customs Service (NCS) has championed an Authorised Economic Operators (AEO) programme to enhance the efficiency and predictability of trade facilitation efforts in the country.

    The Comptroller-General of Customs (CGC) Adewale Adeniyi, during a stakeholder in Abuja, said the programme would foster collaboration between the Nigeria Customs Service, Other Government Agencies (OGAs) and Experts to boost AEO programmes.

    The CGC underscored the determination needed to work together and ensure that the narrative is changed about the ease of doing business in and around Nigerian ports.

    He said: “And if you have observed, you will also see that AEO cuts across virtually every player in the sector, the exporter, the importer, the government agencies, regulatory agency, the customs and everybody in one way or the other.

    “So this allows us to address some of those issues. So that when next operators talk about compiling how much it takes them, we will see data that are a little bit more friendly.”

    He recalled that the NCS in February 2024 launched a Time Release Study (TRS) as another measure to optimise the trading experience within Nigeria.

    Assuring the stakeholders of Nigeria Customs Service’s commitment to run the pilot program of AEO successfully, the CGC said: “As we are taking the steps with you with the implementation of the Authorised Economic Operator program, which hopefully will start from the 15th of April 2024.”

    He also explained that the objectives of the pilot program as a course were to evaluate the visibility and effectiveness of implementing the AEO program within the Nigeria Customs Service and to solicit feedback from all our key stakeholders.

    He said: “All these pilots that we want to run, we aim to identify potential challenges, fine-tune our processes, and lay the groundwork for a full-scale rollout of the AEO program.”

    He expressed optimism that the Service will be committed to fostering transparency, inclusivity and collaboration while ensuring that the program’s designs and execution align seamlessly with international standards.

    “Why we do this is we want to remain attuned to the unique realities of our local context. Seven key stakeholders that are legal entities whose operations span across the international supply chain have been carefully selected by the pilot programs.”

    The CGC revealed that selected Importers, Exporters, Small and Medium Enterprises, Customs Licence Agents, Logistics Operators, and Government Agencies as pilot stakeholders to run the pilot scheme of the AEO program in Nigeria.

    He expressed his readiness to partner with business stakeholders to enhance trade in Nigeria.

    He also urged the participants to expedite their commitment to ensuring the potential of the AEO program, which would foster a culture of efficient customs processes compliance, integrity, and collaboration that will propel Nigeria.

    “This is a collective and transformative journey we must come together with renewed determination. Knowing that together we can shape a future that knows no boundaries and prosperity with no limits,” he said.

    Also, Awa Nnenna, Chief Superintendent of Custom and Project Manager of the Authorised Economy Operator said the pilot phase of the program is designed to streamline Customs clearance processes while ensuring transparency and inclusivity in line with international standards.

    Awa noted that the key benefits of the AEO program include expedited Customs clearance procedures and the establishment of mutual trust between Customs authorities and accredited operators.

    “By facilitating smoother trade operations, the programme aims to stimulate economic growth.”

    On his part, Charles Odii, Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), commended the Nigeria Customs Service for its proactive approach to engaging small-scale business owners through the Authorised Economic Operator (AEO) program.

    Odii, while reiterating his commitment towards supporting the AEO programme, said the initiative will contribute to the growth of Nigeria’s GDP and Foreign Exchange reserves.

    He emphasised the importance of creating avenues for domestic business owners, particularly SMEs, to participate and benefit from such initiatives.

     “I believe that this program will enable SMEs to enhance their investments and leverage the opportunities presented by the AEO window.”

    Read Also: Customs intercepts 940 rounds of ammunition concealed in garri

    He added that the program will not only streamline trade processes but also change the narrative surrounding trade in the country, ultimately fostering a more conducive environment for business growth and development.

    He added: “As we are launching this scheme, I am looking forward to the many more testimonials within the next six months.

    “What we want to do is get all the testimonials to help ease the operations at the port and see how these will trickle down to job creation and just helping to increase livelihoods of small business owners in Nigeria.”

    Pius Akutah, CEO of the Nigeria Shippers Council, commended the NCS for the initiative and reiterated the council’s commitment towards supporting and ensuring the success of the AEO programme.

  • Customs intercepts 940 rounds of ammunition concealed in garri

    Customs intercepts 940 rounds of ammunition concealed in garri

    Operatives of the Ogun 1 Command of Nigeria Customs Service (NCS) have intercepted 940 rounds of ammunition concealed in sacks of cassava flakes known as garri I local parlance.

    The live cartridges,  according to the Controller of the Command, Ahmadu Shuaibu, were intercepted along the Benin-Idiroko border on Thursday.

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    Shuaibu disclosed this during a press briefing held at the Idiroko office of the command, noting that the anti-smuggling operatives along the border had tracked the ammunition for over two weeks from the Republic of Benin before it was smuggled into Nigeria.

     Shuaibu noted that the superior security network of the Command facilitated the seizure of the items, saying that the suspected smugglers of the ammunition managed to escape, abandoning the seized items.

    According to him, the command also intercepted 123 sacks and 3,172 parcels of cannabis sativa (Indian hemp), 380 pieces of donkey skin, 304 bales of used clothes, and 910 cartons of frozen poultry products.

  • Customs intercepts arms, military uniform at Lagos ports

    Customs intercepts arms, military uniform at Lagos ports

    The Nigeria Customs Service (NCS), Tin-Can Island Customs Command, Lagos, yesterday said its officers intercepted 11 rifles and six pistols, including their ammunition, alongside banned drugs in different containers at the Tin-Can Island Port between January and middle of March, this year.

    Addressing reporters at the port, its Area Controller, Dera Nnadi, disclosed that due to an ongoing investigation, the source of the arms and ammunition would not be disclosed at this period.

    According to him, “the main reason for bringing all of us here today is to showcase the successes that we have recorded in partnering with our partner agencies in the area of enforcement”.

    He said further that “the Command’s anti-smuggling drive has yielded the following result: one 20P 9964 Rifle; another 20P 9964 Rifle; one Pump Action Rifle; one Practical Tactical 30H 80019922 Rifle; another 20P 992 Rifle; two AV Pump Action Rifle; and yet another P10115 Rifle.

    “In total, we seized 11 Rifles and six Pistols from different containers imported into the country at different times.

    “We also seized psychotropic substances imported into the country but were intercepted through collaboration with the National Drug Law Enforcement Agency (NDLEA).

    “Based on this collaboration, several kilogrammes of Cannabis Indica have been seized. In recent time, we have also seized 23 packages containing 23 kilograms of Heroin concealed in a container, the identity of which we are still keeping secret due to ongoing investigation.

    Read Also: Audit report indicts NUPRC, Customs for non-remittance into federation account 

    “Our vigour to make these seizures is in furtherance of the resolve of the Federal Government to make this country safe. We are all aware that the conveyers of these seizures intend to use them for nefarious activities which include support for insurgents and kidnapping activities and other vices that are inimical to the well-being and security of our nation.

    “In the area of revenue generation, for the first two months and 14 days of this year, the Tin-Can Customs Command has been able to generate N240,302,000,000.00. This is what we have generated from January to today, 15th of March, 2024.

    “If you recall, our revenue target on a monthly basis is N94,000,000,000.00. What this means is that we have been able to surpass our expected revenue target of N188billion for January and February.

    “By way of percentage, we have surpassed our January revenue target by 107 per cent and also surpassed our February target by 141 per cent.

    “I will not give you the percentage for March because we are still in the middle of March.”

  • Audit report indicts NUPRC, Customs over unremitted FAAC revenue

    Audit report indicts NUPRC, Customs over unremitted FAAC revenue

    The Office of the Auditor General for the Federation (OAuGF) has indicted the Department of Petroleum Resources now Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Customs Service for non-remittance of several billions of naira into the federation accounts for the 2020 financial year.

    The 2020 Auditor General’s report obtained by The Nation revealed that while the NUPRC deducted monies from the Federations Account, the Nigeria Customs Service failed to remit several billions of taxes into the Federations Accounts for sharing among the three tiers of government.

    The report said: “The sum of N151.121billion was deducted by Nigeria National Petroleum Corporation (NNPC) from the oil royalty assessed by the Department of Petroleum Resources (DPR) now Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for 2020. The deductions by NNPC were purportedly for handling government priority projects, strategic holding costs, crude oil, and product losses among others”.

    It said there was no evidence to show details of the priority projects and approval by the Federation Account Allocation Committee (FAAC), adding that the deductions were made before remittance to DPR (now NUPRC).

    In its management response, the agency said: “The NNPC makes deductions for Government priority projects at source before remittance of royalty to NUPRC with the latter having no control over this. Thus, NNPC is in a better position to provide the necessary approvals to justify these deductions.

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    “The office of the Accountant General of the Federation has been duly written on the payment of 4% Cost of Revenue Collection to NUPRC for money deducted at source by NNPC for Government priority projects”.

    The Auditor General said the Chief Executive Officer of the agency should be requested to account for the said N151.121 billion that was deducted by NNPC from Federation Account revenue proceeds.

    The report put outstanding royalties payable by the Nigerian National Petroleum Corporation (NNPC) to the Department of Petroleum Resources (DPR) now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) concerning Production Sharing Contracts (PSC), Repayment Agreement (RA) and Modified Carry Arrangement (MCA) lifting as at 31S’December, 2020 at US$437,505,612.21

    In addition, it said that out of the amount, the NUPRC received US$417,731,114.06 leaving an outstanding balance of US$19,774,498.15 as outstanding royalties from two (2) operators as of 31% of December 2020 without any justifiable reason.

    It also reported that from the review of highlights of 2020 annual crude oil royalty and Gas, Gas flare payment and concession rentals reconciliation minutes of meeting between DPR (now NUPRC) and NPDC, it was discovered that US$2,021,411,877.47 from outstanding Royalty from Crude Oil and Gas sales and Gas flare, were reported as set off of Nigerian Petroleum Development Company’s (NPDC) claims against the Federation per inter-agency reconciliation for 2020.

    In addition, it said that the sum of N13,313,565,786.49 in respect of Gas sales Royalty (Domestics) was reported as a set-off of NPDC’s claim against the Federation as per inter-agency reconciliation for the period under review, but there were no documents to substantiates such claims, adding that the unjustifiable set off drastically reduced the balance of the outstanding liabilities due to be paid by NPDC.

    The report said that the Nigeria Customs Service (NCS) collected different Federation Account Levies including CET Levies, Rice Levy, 100% Cigarette Levy, 30% Textile Levy, 30% Levy on Wine and Spirit, 30% Levy on Sanitary Wares, Wheat Flour Levy and Wheat Grain Levy, but only remitted CET levies to the federation’s accounts shared at the FAAC by the three tiers of government.

    It said: “The sum of N328,706,765,904.74 was the revenue collected by NCS in respect of the levies in and were not part of Federation Account Levies shared at Federation Account Allocation Committee (FAAC) from January 2016 to December 2020, adding that there were no documents presented to substantiate non-remittance of the said amount into the Federation Account.

    The OAuGF attributed the anomalies to weaknesses in the internal control system at the NCS around the collection and remittance of revenue, particularly by the Heads of the Accounts Department and Federation Account Revenue Unit who should have ensured the complete remittance of all Federation Account Revenue to the appropriate quarters.

    It said this led to the loss of government revenue and unauthorized utilization of Federation Account revenue and levies while asking that the Comptroller General should be requested to account for the said money.

    The report also said the service debited the Federations Account with an unsubstantiated N13.905 billion not related to the FAAC remittances without any document presented to substantiate the debits.

    It accuses the NCS management of operating a weak internal control system around proper record maintenance and follow-through process on records of Federation Account Revenue at CBN, particularly at the Management level and accounts section which should maintain all relevant books and documents and ensure parity between NCS documents and CBN statements.

    But the Customs management, in its response to the audit query said the debit transaction in the Federation Account was a result of double entries made by the Central Bank of Nigeria (CBN) during their regular system upgrade, adding that the monthly reconciliation with CBN and OAGF reveals that the entries are correct.

    It also alleged that the NCS did not remit the sum of N10.559 billion being part of revenue collected from Import Duties, CET Levies and NCS VAT between January 2016 and December 2020, while failing to present documents to substantiate non-remittance of the amount into the Federation Account.

    It also said that the Customs did not remit the sum of N1.704 part of Federation Account Levies (other than CET Levies) collected between January 2016 and December 2020, to the Federation Account, while failing to substantiate under remittance.