Critical stakeholders on maritime space are of the opinion that CGC Adewale Adeniyi's beautiful credential as the best Comptroller General of Customs will be incomplete if he leaves office without revisiting some of the sentimental policies by previous administrations that are affecting trade facilitations for corrections. In a press release written by CGC Adeniyi on December 5, 2016 as the National PRO of Nigeria Customs Service captioned "FG BANS IMPORTATION OF VEHICLES THROUGH THE LAND BORDERS," had the followings in that short notice: Importation of vehicles into Nigeria through the land Borders have been
banned by the Federal Government. The prohibition order covers all new and used vehicles. The Ban is sequel to a Presidential Directive restricting all vehicle imports to Nigeria Sea Ports only. The order takes effect from 1st
January 2017. It went further that the restriction on importation of vehicles follows that of Rice, whose imports have been banned through the land Borders since April 2016. Importers of vehicles through the land borders are requested to utilize the grace period up till 31st December 2016 to clear their vehicle imports landed in neighbouring Ports. The press release signed on behalf of the then Comptroller-General ofCustoms, Col. Hammed Ali rtd did not give reasons for the ban immediately. It was just a presidential order. This ban brought mixed reactions from Nigerians who saw it as in good and bad move depending on the side they were looking at it and how it favors or disfavors them. At an elaborate discuss on this emergency order Col. Ali said that the government
may reconsider its decision after the successful implementation of a new initiative by the Nigeria Customs Service and the Customs Service of the Republic of Benin to automate and network all electronic information about incoming cargoes through the border. The then
Comptroller General, Col Ali, who was represented by the Assistant Comptroller General, Information and Communication Technology, Benjamin Aber, at a stakeholders’ meeting on the new initiative, expressed confidence that with a successful implementation of the bilateral electronic connectivity programme between Nigeria and Republic of Benin, the Federal Government might lift the ban on items coming through the land border. Col. Ali said the decision of the government to shut down importation of vehicles through the border was because the government did not have a reliable system that would assist in controlling importation among other reasons. It is nine years since this order took effect but the ban on vehicle importation through land borders failed to solve its intended problems. Instead of curbing smuggling or boosting local auto manufacturing, the policy led to increased inflation, massive revenue losses at authorized entry points, and heightened hardship for everyday Nigerians trying to afford transport. Rather than stopping illegal imports, the ban pushed the trade to hundreds of unapproved, porous bush paths. The Nigeria Customs Service faced immense difficulties policing these illegal routes. There were severe revenue losses by forcing trade through inefficient and congested seaports (like the Lagos ports), the government inadvertently lost billions in accruable import duties to neighboring countries, prompting the demand for reopening of key borders like Seme for vehicle transit. Despite the much pressure, the militarized regime of Muhammadu Buhari did not listen to anybody. The regime of Col. Ali as Comptroller General of Customs came up with a theory of inter-connectivity at Seme border which many of the industry watchers felt could be a solution. With declarations made for imports transiting from either of the countries (Benin and Nigeria) electronically shared, the process of import and export would be done in a transparent manner and the government seeing such transparency would be convinced to relax its stance on land border importation. Col. Ali said “Vehicles were formerly being imported through the Seme border, but suddenly it was banned because the pressure of enforcement of anti-smuggling for vehicles and claiming of lives and revenue were becoming too alarming, so the government had to restrict the importation through Nigerian ports. “When vehicles came through the land border, we did not have a record of how the imported cars came here and fake documentation became a common phenomenon. The ban was just a control measure against the practice. “By the time we successfully deploy this reliable, transparent and predictable programme that would assist government agencies, not only Customs, to control and regulate the importation of vehicles, the government may decide to relax such restrictions.” These claims were not true because before CGC Abdullahi Dikko Inde left office, there was a bilateral agreement on movement of vehicles on transit to Nigeria through Cotonou port. With the agreement, all transit vehicle for Nigeria were escorted to Seme border and handed over to Customs Officers at the Vehicle Seat. The only problem by then was parking space and the freight forwarders were therefore advised to process their vehicle documents before arrival at the border.
Today, the situation is changed because such a parking space was initiated by the Seme command in preparation to receive these vehicles on arrival. At Seme today, the terminal can conveniently accommodate more than a thousand vehicles. It is therefore very expedient that before CGC Adeniyi MFR, PhD should leave office, there should be a revisit to this international trade anomaly. According to World Trade Organisation WTO convention, trade regulations and amendments with regard to restriction and reversal of Fiscal Policy on Trade, must be subject to process of consultation by trading public and transparency in the timing, so as to accommodate the challenges that will be associated with the directive or regulation. All the stakeholders including the National Assembly that agitated for a reversal of the obnoxious policy suspected that nothing could happen considering the fact that Col. Ali and the then President Buhari might have a class issue to settle with Benin Republic. The Senate felt otherwise as decision that affect the country generally are not taken just like that. The Senate therefore opposed the ban on importation of vehicles through Land Borders. The Senate issued the Nigeria
Customs Service to suspend, with immediate effect, the policy of an outright ban on vehicle importation through land borders. The order was based on a motion move by a federal lawmaker, Senator Jubrin Barau, which drew the attention of the Senate to the recent federal government policy. He argued that it is not economically expedient to ban the importation of vehicles through the country’s borders as the policy would lead to the loss of nearly 500,000 jobs by people who import vehicles. After the debate, the Senate demanded a suspension of the policy which took effect from January 1, 2017. The Senate also directed its committee on Customs to investigate the
circumstances which led to this recent policy decision of the federal government. The motion which was unanimously adopted also resolved to mandate the Senate Committee on Customs to investigate the circumstances that led to the sudden decision of the Federal Government to issue such a policy. Other co-sponsors of the motion include Sen. Kabiru Gaya (APC: Kano South), Sen. Shehu Sani (APC: Kaduna Central), Sen. Aliyu Sabi Abdullahi (APC: Niger North) and Sen. Ali Wakil (APC: Bauchi South). The House of Representatives Committee on Governmental Affairs and Customs and Excise was mandated to investigate the decision of the Nigerian Customs Service to prohibit the importation of vehicles through land borders. While leading the debate on the Motion titled “Need to Suspend the Ban on Importation of Vehicles through Land Borders,” at the plenary session on Thursday 8th December, 2016, Hon. A.B Salame (APC: Sokoto) stated that the ban would lead to an increase in vehicle smuggling, inflation, and criminal activities at the border points. The House unanimously urged the Federal Government to immediately suspend the ban on importation of Vehicles through land borders; Urge the Federal Government to ensure that law enforcement agencies, especially those working at the borders ensure import charges through land borders are paid and remitted to the government. Urge the Federal Government to install border security and surveillance equipment for effective monitoring to address the recurring menace of smuggling and ensure maximum revenue generation on legally imported goods; Urge the Federal Government to recruit more personnel into border security agencies. However, major car dealers in both new and used vehicles who did not want their names mentioned for fear of backlash from government knocked the policy saying that it will have devastating impact on ordinary Nigerians and the economy. The dealers also noted that the decision was
also taken in the interest of asmall segment of the auto industry claim to be auto manufacturers but in fact are not manufacturing any cars in Nigeria. “Only Innoson is doing some level of automobile manufacturing in Nigeria. All the others are at best just fixing lights, bumpers and trunk and they call it manufacturing," they said. On the other hand, how is the patronage of these vehicles assembled in Nigeria. It is on news on how some of the states government blatantly refused to patronize Innoson motors including his state governor Prof. Chukwuma Soludo. CGC Adewale Adeniyi MFR, PhD, you came, you saw and you have conquered. Your numerous visits to Seme border kept elevating the spirit of critical stakeholders at the border that a bilateral agreement on lifting the ban on importation of vehicles through the land border would take place. Vehicle importation through the land border created employment opportunities for many youths who are now on the streets causing trouble. These youths come to Seme border on daily basis and do some auxiliary jobs; they return home with some money with which they take care of their respective families. Apart from these people, there are still many artisans whose vocations connect with vehicles. Weare talking of panel beaters, rewires, mechanics, painters, drivers and others. These people were also affected by the policy because their business and their survival exist side by side. These are law-abiding citizens who always support government policies but this one should be given another look.
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