Business
FG Loses N8bn Monthly At Idiroko Border
The Federal Government may be suffering a major revenue leakage as it loses close to N8 billion monthly to smugglers at the land border of Idiroko in Ogun State.
The Tide investigation revealed that the revenue leakage became obvious owing to smugglers who took undue advantage of the ECOWAS Trade Liberalisation Scheme, which was adopted to facilitate trade within West African sub-region.
Impeccable sources further hinted The Tide that the ECOWAS Scheme opened up opportunities for smugglers to bring in all sorts of dutiable goods under the guise of goods exempted under the scheme, thereby denying the government huge sums of money put at about N8 billion.
Other factors that militated against decreased revenue generation, our sources said, include bringing outright contraband goods, false declaration of imports, concealment of contraband goods, non CRI goods and wrong tariff classification resulting into serious under payments.
Also found to have hindered revenue increase include, use of temporary importation to bring in dutiable goods, use of exception certificate to clear dutiable goods, cargo transfer on bond to private bonded warehouses, cargo diversion and recycling of CRIs and single goods declaration forms to clear goods.
The rest are, use of fake or false documents to clear goods, uncustoms cargo transfer and collusion with the security agents at the borders.
Lamenting the effect of smuggling on the national economy, the President of the National Association of Non Metallic Products Employers Federation (CANMPEF), Mr Devakumar Edwin said the increasing wave of smuggling into the country now ranked number one among the challenges facing the country’s local industries, stressing that “If the trend was not checked in the it may ground the operation of many local industries that have been trying to survive the harsh economic situation.”
CANMPEF also called on the Federal Government to shut the nation’s border with Benin Republic at Seme and Idiroko where the trend has become worrisome as a way of sending a strong message to leaders in the neigbhouring countries that Nigeria would not tolerate the use of any countries as an outpost to sabotage its economy.
Other stakeholders who spoke with our correspondent posited that smuggling across Idiroko border had caused dumping of all sorts of goods that are not even needed, thereby preventing local industries from being functional and viable as prices of smuggled goods are cheaper and more competitive.
L-R: Head of Banking, CBN Enugu, Mr Osagie Agbonabori, Controller, CBN Enugu, Mr Patrick Okonkwo and representative of Zenith Bank Plc, Mr Emeka Madu, receiving award of the Most Efficient Bank, during Enugu Bankers’ Committee Award Night in Enugu, recently.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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