…As Nwabunike reiterates call for 1% of customs revenue to licensed agents
… Pushes for SMART borders
The President, Association of Maritime Journalists of Nigeria, AMJON, Mr. Paul Ogbuokiri has said that trade in non-oil exports holds the key to Nigeria’s economic survival, particularly with regard to intra-African trade.
Ogbuokiri who stated this in a welcome address he delivered at the association’s Annual Conference which held in Lagos on Thursday with the theme, “Rebuilding Nigeria’s Economy Towards a Viable Trans-border Trade”, observed that until recently, when economists listed the dangers of a mono economy, it had sounded like a song meant mainly for entertainment; even with the occasional fall of the price of crude oil in the international market which usually shocks the economy whenever it happens.
“But we normally forget once the price goes up again and things normalize. As such, beyond sloganeering, we have never seemed to bother ourselves with the fact that our Balance of Trade year in year out has been unfavorable to us.
”Now the shock has become permanent because our crude oil has become encumbered, a large portion of it now goes into payment of debts acquired and squandered by politicians, while the other portion is being stolen by powerful people; we are therefore left with little or no foreign exchange to finance our necessary and unnecessary imports”, he said.
Recalling that Nigeria’s President, Bola Ahmed Tinubu has never rested on his oars, since he assumed office, to find a solution to the nation’s economic quagmire, the AMJON President affirmed that he (Tinubu) has used the opportunity of every foreign trip he has made so far to canvas for foreign investment in Nigeria.
“But, while we are waiting for all those presidential engagements to start bearing fruits, AMJON is of the opinion that this is an auspicious time for us as a nation to sincerely look inwards and commence full domestic production for our consumption as it was in the 70s and 80s. The excess, we should sell to other countries for our forex needs.
“As we strongly believe that trade in non-oil exports holds the key to Nigeria’s economic survival, particularly with regard to intra-African trade”, he added.
He maintained that with platforms like ECOWAS Trade Liberalization Scheme, ETLS, African Continental Free Trade Area, AfCFTA and the recent deal between the Customs Administrations of Nigeria and Benin Republic, AMJON believed that discussions should center on trans-border trade between Nigeria and its neighbours with the view to identifying any encumbrance that could hamper trade now or in the future.
Speaking on the theme of the conference, Ogbuokiri said, “The theme of this year’s event, ‘Rebuilding Nigeria’s Economy Towards a Viable Trans-border Trade’, is deliberately chosen because of the poor state of our mono-cultural economy which needs urgent panacea to steer the country away from its present economic crisis situation.”
Speaking on the paper entitled, “The Role Of Customs Brokers In Sustaining A Viable Transborder Trade Fof National Economic Growth”, a former National President of the Association of Nigeria Licensed Customs Agents, ANLCA, Iju Tiny Nwabunike observed that until 2023, the Nigeria Customs Service relying on its extant Customs and Excise Management Act, CEMA now replaced by the Nigeria Customs Service Act, NCSA 2023 has always been empowered to issue licenses to agents under corporate identities.
Nwabunike who was represented at the event by Barr. Ikechukwu Ukadike further stated that while the words ‘Customs Broker’ was not found in the Customs Act 2023, Licensed Customs Agent performs and serves same purpose in Nigeria.
“What this implies is that even as individuals seeking to practice as a licensed customs agent, as it is called in Nigeria (because I may use this interchangeably in the course of this presentation) an applicant seeking for license to practice must come under a registered company name.
Noting that trade itself was dynamic and influenced by state policies regulating import, export and manufacturing or agriculture, Nwabunike who is also a former Chairman of the Council for the Regulation of Freight Forwarding in Nigeria, CRFFN disclosed that what was allowed in one country could be prohibited in another country.
He thereafter itemized the role of customs agent to include: Intermediary, Facilitator, Educator, Revenue Generator, Strengthening Economic Relationship and Promoting Regional Diplomacy.
He contended that over 70 percent of revenue made by government through its agencies from import and export activities have direct and indirect participation of the freight forwarders saying, “For 2024, the Comptroller General of Nigeria Customs Service recently said the service aims to collect N6 trillion for government. Over N4 trillion of this projected collection will likely be made through customs brokers. This is why I would like to reiterate my call to government to consider giving a percentage through statutory provisions to the customs broker.
“Giving them a percentage solidifies their stake and would enhance their productivity as their benefits would be dependent on what they made for the government. This will be a win-win for government and the brokers as more revenue would be collected. It will also reduce the stress of deploying risk management tools like post clearance audits, alerts and Demand Notices, DN to prevent revenue loss.”
X-raying the peculiar nature of the Nigerian borders, he said that Nigeria being an Anglophone (English speaking) country was surrounded by neighbors that are predominantly Francophone (French speaking), which on its own was a challenge when it comes to trade dialogues.
“Our borders are also devoid of equipment required of modern day land borders. Whereas, the World Customs Organisation, WCO supports the concept of SMART borders for seamless Trade, Travel and Transport. Nigeria is yet to achieve SMART borders in the real sense of it.
“WCO Members are encouraged to look at how they can strengthen their endeavour to facilitate trade and travel, whilst mitigating threats inherent in the cross-border flows of goods, people, and means of transport. Our “SMART” acronym stems from the following guiding principles: Secure, Measurable, Automated, Risk Management-based, and Technology-driven.
“The rapid and safe movement of people and goods across borders encourages trade, travel and transport, and Customs has the dual task of facilitating this flow while securing it. This is no easy task and Customs is expected to be focused and determined to achieve its goal”, he opined.
He concluded by saying that the cumulative impacts of trade across various spheres contribute to national economic growth and the importance of the customs brokers cannot be overemphasized when it comes to this as according to him, “They touch directly on local and global trade thereby impacting the economy.”
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