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Car Dealers Accuse Customs Of Operating Two-Duty Regimes

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The Nigerian Automobile Association has alleged that there are two different regimes of duties being collected from them by the Nigeria Customs Service, a situation it says is against the rules of the World Trade Organisation.
The group, in a statement on Wednesday, signed by its Secretary, Ademola Moshood, said this was discovered during one of the meetings between car dealers and the Customs held to address the allegations of smuggling levelled against them.
It said the two regimes of duties and the system of documentation were allowing corruption to thrive as well as causing distress to buyers of new vehicles in the country.
The association recalled that on September 29 this year, members of the Comptroller-General of the Customs’ strike force and officers attached to the Federal Operations Unit, Zone ‘A’, Ikeja, Lagos stormed the Berger auto market and other major car dealers’ premises in Lagos in search of smuggled vehicles and sealed the auto markets.
It said this led to an engagement between some Customs officials and car dealers in the state.
“Subsequent meetings with the dealerships revealed that the government’s agency had a system of documentation and two regimes of duties that create a fertile environment for corruption to thrive within its fold to the distress of buyers of new vehicles in the country,” it said.
“The Customs duty system is whimsical because it is not based on any known indices and certainly not based on the World Trade Organisation’s, which applies only duties determined as Freight on Board,” it said.
The group stated that the price of a product sold by a manufacturer to a Nigerian buyer or any other country’s importer, also called FOB, was universal to every buyer of goods from the same manufacturer and could be used to calculate local duties in the destination country.
It said if the quoted cost of the FOB was different, it must have been on account of accessories in the vehicles.
It said dealers, who met with Customs officials after the September 29 shutdown, were shocked to find out that there were two sets of FOB in two different documents.
It explained that one of the documents, entitled ‘National Valuation Database for Imported Motor Vehicles 2014-2019’ was believed to be baseless, as the dealers claimed it was contrived based on the whim and caprice of the NCS.

 

Stories by Chinedu Wosu

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Maritime

Weak Shipping Line Regulation Undermines Customs Reforms —-Says SEREC

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The Sea Empowerment and Research Centre (SEREC) says poor regulation of shipping lines could undermine the credibility of the Nigeria Customs Service (NCS) reforms.
Head of Research SEREC, Dr Eugene Nweke  made this Known to Newsmen in Abuja
Nweke said that customs efficiency was linked to the performance of the Nigeria’s maritime and trade ecosystem.
Hr described the NCS as central to the success of the National Single Window (NSW) risk-based clearance and trade facilitation reforms.
“However, Customs efficiency gains are systematically eroded when upstream shipping practices introduce artificial delays, speculative charges, remote cargo release approvals and opaque cost structures”.
“In effect, weak regulation of shipping line conduct externalises inefficiencies into the Customs clearance process, inflates transaction costs, distorts compliance behavior and undermines the credibility of customs-led trade reforms,”
Nweke said that SEREC had submitted a white paper to the government advocating that shipping line governance, port economic regulation, and customs trade administration should be treated as inseparable policy domains.
SEREC said Nigeria’s Port challenges were not only infrastructure-driven but governance-related, warning that weak regulation, missing oversight reports and unchecked discretion in systems like the NSW could undermine reform efforts.
SEREC recommended reforms for Nigeria’s shipping sector, including public release of committee findings, statutory refund timelines with penalties, banning speculative demurrage billing, mandatory local cargo release and alignment of shipping practices with the NSW among others.
Nweke said that the aim of the white paper was to draw attention to sharp practices and regulatory weaknesses that had evolved beyond operational inconveniences into macroeconomic and governance risks.
“For NCS trade reforms to deliver their full impact in 2026 and beyond, shipping practices must align with the same principles guiding Customs modernisation: transparency, predictability, automation, accountability and local control.
Nweke said that by 2026, stakeholders in Nigeria’s maritime industry hope to transition from opaque and arbitrary port operations to a transparent, rules-based system managed through digital technology.
He stressed that the shift should align with ongoing reforms and international best practices, facilitated by the government through providing enabling environment and enforcing regulations
“These include predictable costs, enforceable service standards, transparent billing, time-bound cargo release, and institutional accountability particularly as Nigeria advances the National Single Window (NSW), port economic regulation, and revenue optimisation objectives.
“The expectation is not the creation of new laws, but disciplined enforcement of existing instruments, public disclosure of regulatory outcomes, and insulation of regulators from political and commercial capture,” Nweke said.
By: CHINEDU WOSU
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Maritime

Tinubu Approve Take Off Of Olokola Deep Seaport In Ogun State

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Nigeria President, Bola Ahmed Tinubu has approved the immediate take-off of the Olokola Deep Seaport project in Ogun Waterside Local Government Area
The approval brings  to an end years of delay surrounding the multi billion dollar Port.
Gov. Dapo Abiodun of Ogun made this Known to Journalists during an interactive session
 Governor Abiodun said the Seaport would help decongest Lagos ports, while oil drilling at Tongeji Island would boost economic activities and inclusion in coastal communities.
“The Olokola deep seaport project, which has been on the drawing board for several years, has been revived following a series of meetings with the President”.
“I want to sincerely thank Mr President because this is solely his initiative. In the last two weeks alone, we have held several meetings on Olokola, and he has clearly expressed his desire to see the port become a reality,” he said.
The Governor said the seaport would be known as the Blue Marine Economic Zone, would leverage the coastal road as an alternative logistics corridor and further ease pressure on the Lagos ports.
He commended the Nigerian Navy for establishing a Forward Operations Base at Tongeji Island, saying the move would enhance security and prevent infiltration from neighbouring Benin Republic.
The Governor said that the state government was working to provide basic amenities for residents of the island to improve living conditions and support emerging economic activities.
Abiodun thanked the Navy for its contribution to security in the state, attributing the relative peace in Ogun to collaboration among security agencies.
By: CHINEDU WOSU
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Gov Eno Vows To Actualise Ibom Deep Seaport Project 

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 Akwa Ibom State Governor, Umo Eno says his administration is  commitment to deliver the Ibom Deep Seaport project as a critical infrastructure to boost the state’s economy and transform the region.
The Governor said this during the signing of a Memorandum of Understanding (MoU) between the state government and the Interaf Group Consortium at the Government House, Uyo.
Represented by the Secretary to the State Government, Mr Enobong Uwah, Eno emphasized on the project’s significance.
“The project is a necessity for the people of the state as my administration is fully committed to putting the necessary requirements in place to get it on course,” Eno said.
The Governor urged the consortium to work closely with the Akwa Ibom Investment Corporation, AKICORP, and the government’s representatives to ensure its timely execution.
He commended the organisation for its interest in ensuring the actualisation of the project
The Governor thanked the former Petroleum Minister, Mr Don Etiebet, for being a part of the team, and for working toward the actualisation of the facility.
Earlier,Chairman and Chief Executive Officer of Interaf Group Consortium, Mr Ezinwa Ibekwe commended the government for the confidence reposed in the company.
Ibekwe assured the government of the consortium’s readiness to deliver on its mandate, promising a collaborative approach to ensure the project’s success.
By: CHINEDU WOSU
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