The Buhari government promised change and sweeping changes at that, especially in view of the wide-spread view that Nigeria witnessed some of the most corruption times in the recent past. Many institutions were known to be openly corrupt in the Nigerian landscape. Were a list to be drawn up, the Nigerian Customs Service would not escape the list. It stands to reason therefore that the leadership of Customs should be jittery, fearful of being swept aside to make way for a reformist who would make a more transparent and effective organization of the service.
The recent physical crackdown by officers of Nigerian Customs on companies alleged owing excess duties levied after customs had cleared their goods for importation is believed to an effort to paint the present customs administration white and escape the cleansing brush of this administration. Or how else does one interpret the sudden crackdown by Customs, in the face court orders restraining them from taking action against the companies until the various court cases instituted in this respect are vacated.
Early in the week of 27 June, heavily armed men of the Nigerian Customs invaded premises of seven companies alleged owing N23.6billion on account of unpaid levies in respect of rice importation. Customs alleged that the companies had imported rice in excess of quotas granted them by the Federal Government in its Rice Policy circular. They demanded payment of 40% levy on the deemed excess, imported between June and December 2014.
Elsewhere, one would have asked if customs officers had access to this policy paper ahead of the importation and admittance of the goods through our ports. One would have wanted to know if customs was aware of the conditions of the incentives attached to these policy initiatives and the conditions under which the incentives could be availed.
Knowing how thorough our customs men are, they would have scrutinized the policy document and referred it to their legal officers for advice before implementation. Based on their interpretation of the Rice policy circular, they accepted documents submitted by importers operating under this incentive programme at point of importation, and allowed their cargo to be cleared by paying the prescribed10% duty and 20% levy. They accepted this rate repeatedly for six months until December 2014, when the Federal Ministry of Agriculture woke from its slumber and remembered that it had failed to convene a meeting of the inter-ministerial committee as directed by the government or issued quotas to bona fide rice value chain operators as required by the directive. The inter-ministerial committee was saddled with the task of determining the supply shortfall in rice to be made up by importation and the allocation of quotas to bona fide investors.
One would have thought that customs on receiving the circular would have sought clarification on how far it should go since the circular was clear as to the fact that the incentive was valid for the supply gap as determined by the inter-ministerial committee. They did no such thing. They proceeded to implement the policy paper handed them, and assessed incoming rice cargo by the bona fide importers at the incentive rate of 30%.
It is still to be ascertained whether only these seven culprits brought in rice at the incentive rate. We understand that the quota unilaterally determined in arrears by the Federal Ministry of Agriculture also granted generous quotas to some would-be investors, who at that time had no verifiable investments in the rice value chain. They had shown the Minister of Agriculture their intent to start rice farming and milling by 2017. This carried a lot of weight with the minister and they were rewarded with bounty allocations at the expense of acknowledged importers who had been given key investor status by the federal government agencies responsible for certifying bona fide investors. No wonder then the bona fide investors allegedly imported in excess of their quota. Their quota had been sharply reduced by the allocation to un-preferred, would-be investors, and existing value chain operators were suddenly thrown off balance, with allocation of less than 10% of the established supply gap. Customs must come out in the open with the complete record of all importers that benefitted from the incentive rate to be a credible organization.
At the outbreak of the on-going impasse, the aggrieved importers sought and secured a court injunction restraining customs from enforcing the retroactive levy pending the determination of the cases in court. Customs complied and resorted to dialogue with the aggrieved importers. One wonders what then has changed.
Indeed the fear of the ”agents of change” is the beginning of wisdom. However, the change required of Customs must not be these sporadic interventions at the dawn of their performance review. Nigerian Customs cannot be adjudged effective if its modus operandi is to apply jungle justice or forcefully cracking down on its clients, after the event, in the face of restraining court orders. In a systems driven operation, it would have had the opportunity to analyze the policy circular and raise questions as to the gaps and loop-holes that pervaded it. It further had the opportunity, at point of entry, to seek clarification from its superiors what volume of cargo should be admitted at the incentive rate, as the policy circular clearly stated that the incentive import was to cover the supply gap.
In this crack down, onlookers witnessed the deployment of sophisticated Customs gadgets and resources, including surveillance helicopters, sophisticated fire arms and trained intelligence officers. If these gadgets and resources were to be deployed in the war against smuggling at our land borders, one avers that customs revenue would almost double. We observe the Seme border night after night and watch unregistered vehicles and cargo laden trailers violate the mercantile laws of our land. We have been told many times that the borders are too large to police and that customs are simply helpless in this regard. The recent demonstration of muscle shows that it is lack of will that’s responsible for our porous borders, that the customs has the wherewithal to do an effective job if they diligently discharge their duties, that they do not lack funding or equipment required to carry out their job.
One sincerely believes that it will take more than this belated show of muscle to convince the new administration that the customs is an effective, clean, and process-driven operation. We believe the body needs holistic change to reform the attitude and orientation of its rank and file to make the institution transparent and proactive. As a key revenue generating agency, its failings deeply affect the fortunes of national development, hence it must demonstrate beyond reasonable doubt that it is appropriately structured, internally motivated, sufficiently disciplined and has enough depth to discharge its duties, while observing best practice and obeying the rule of law.
Customs needs more than this sporadic show of force to save its hierarchy from the blowing wind of change.
- Bankale sent this piece from Victoria Island, Lagos.
