Connect with us

Business

Several Vehicles Trapped At Borders …As Imports Ban Takes Off

Published

on

The Nigeria Customs Service (NCS) has kicked off the implementation of the policy banning importation of vehicles through the land borders with many vehicles trapped at the borders.
The Association of Nigerian Licensed Customs Agents (ANLCA), Seme chapter, however, disclosed said that so many vehicles were trapped at the border posts.
The Public Relations Officer of the NCS, Seme Command, Mr Selechang Taupyen, told The Tide source in Badagry that the service had to comply with government’s fiscal policy.
Taupyen said that officials of the command had been placed at strategic places to curb any form of smuggling of cars.
The Federal Government had on Dec. 5 placed a ban on importation of used and new vehicles through land borders with effect from Jan. 1, 2017.
“The Federal Government has directed that importation of cars through the land borders should be banned and we are the agency that would enforce it so we have started with that.
“The border is close to the point of importation of cars and the command has placed its men and escorts at strategic places to ensure that there is no smuggling of cars through the border.
“We also have a good working relationship and synergy with other security agencies who assist us in enforcing this policy because we all work for the same government.
“We advise the public to abide by the government policy and if they must purchase a car then it should come through the sea port as any vehicle that tries to come through the land border would be seized and confiscated.
“Violators of the law would face the full wrath of the law,’’ he said.
Taupyen said that the policy was meant to encourage local production of vehicles in the country.
“The public must look at the long term benefit of this policy as this would help in encouraging local production of vehicles and it would boost the economy.
The Chairman of ANLCA, Alhaji Bisiriyu Danu, said as at Friday, Dec. 30, 2016, the Customs Authorities asked the agents to stop payment of Customs duty on vehicles by 5 p.m.
Danu said the association was not aware of any circular counter to the ban.
He said that so many vehicles uncleared by Customs agents were as at this morning (Jan. 3, 2017) trapped at the ports of neighbouring countries.
The Customs agent said that the association went into dialogue with some government representatives to grant a three-month grace period.
Danu said the grace period would enable ships carrying vehicles to berth for clearance before implementation of the ban.
The Customs agent said the ban would render many car dealers around Badagry and environs idle and this could be a dangerous trend.
He said that the enforcement of the policy would increase smuggling activities across the border.
Danu said that the policy would also increase unemployment among youths in the area.
“The Seme border is extremely porous and the situation has been managed properly by Customs officials but this policy is going to increase smuggling..
“All the unapproved routes would be exploited by smugglers. So smuggling would be on the rise with this policy that the government has put in place.
“Also it would increase the rate of unemployment of youths in this area as many people rely on this as a means of livelihood.
“The government should consider all these factors and lift the ban of vehicles through the land borders,” he said.
A major stakeholder in Seme, Chief Sam Maduike, pleaded with the Federal Government to lift the ban.
“The policy is going to bring untold hardship to the masses as the average Nigerians cannot afford to buy a brand new car.
“Also many people rely on buying used vehicles as their means of livelihood but this policy is just going to worsen the situation of things in the country.
“The government should consider all these and ift the ban,” he said.
A resident, Mr Tunde Apata, pleaded with the government to lift the ban.
“I helped people to buy cars from Cotonou and I have been doing that for several years. So, basically, this has been my only source of income.
“With the ban, I do not know how I would cater for myself and family. I am doomed,’’ he said.
Apata said the service was complying with the directive of the Federal Government that no vehicles should come through the border posts.
The President of the National Council of Managing Directors of Licensed Customs Agents, Mr Lucky Amiwero, said that the Federal Government should inaugurate a committee to look critically at the implications of the ban on vehicle imports.
He said that government should also look at the risk of lives of Customs officers because there would be increase in smuggling.
Amiwero said that a question that should also be asked is “Are Nigerian Ports friendly to accept vehicles’’?
He urged government to address the high cost of doing business in Nigerian ports.
“Our drafts level should be increased to accommodate bigger ships carrying vehicles.
“The most important thing is for government to provide a way for ships to sail easily into Nigerian ports and reduce the costs of doing business at the ports,’’ Amiwero said.
The Customs agent said that the shipping costs, the terminal operators handling costs and other costs make importation of vehicles into Nigerian ports most expensive compared to other ports in the sub-region.
He said that the port costs, the value of the vehicles and the procedures of clearance were very key.
Amiwero recalled that in 1998 and 1999, he agitated to bring back cargoes through the land borders because government was losing a lot of revenue to neighbouring ports.
“We have porous borders and we do not have the tool to check smuggling, ‘’ Amiwero said.
He said that operators of assembly plants should also be provided with the necessary conducive environment.
The National Association of Government Approved Freight Forwarders (NAGAFF) on Tuesday said it supported the ban.
The National Publicity Secretary of the association, Mr Stanley Ezenga, said that the association‘s support was borne out of the economic benefits that the policy would bring to the nation.
Ezenga said that this “is in terms of revenue and improved capacities in local automobile manufacturing’’.
“We support the new policy to ban vehicles through the land borders in its entirety because of the obvious economic benefits to the nation.
“First, activities are at their lowest ebb at the various ports due to diversion of cargoes to ports in neighbouring countries and we believe the policy will make our ports busy as vehicles will now have to come in through the ports.
“Also, there is the government`s Auto-Policy in place designed to encourage local capacities in the manufacturing of vehicles.
“So we believe the policy would prevent dumping and smuggling through better monitoring,’’ he said.
On whether the policy has taken off on Jan 1 planned date, Ezenga said he would need feed backs from his men around border posts to be sure.
“The National Assembly once called for the suspension of the policy but I do not know if the Federal Government is going ahead or backing off.
“It is still very early in January. Our men are on the field and we will know with time if the policy is going ahead or not,” he said.

Continue Reading

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

on

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.
The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.
According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.
This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.
Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.
“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.
“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.
With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.
The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.
Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.
Continue Reading

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

on

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.
The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Continue Reading

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

on

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.
Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).
Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “
Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade
Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.
He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.
Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.
“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.
Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.
He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.
Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.
He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.
Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.
Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.
John Bibor
Continue Reading

Trending