In Sokoto, on Customs' trail
By MAURICE ARCHIBONG
Thursday, November 29, 2007

•Comptroller with a colleague Photos: MAURICE ARCHIBONG

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Dogged by criticisms over alleged mishandling of waivers, leading to losses to the tune of billions of naira, officers and men of the Nigeria Customs Service (NCS) couldn’t have found a better venue for this year’s annual edition of their Comptroller General’s Conference. By taking to the northwestern city of Sokoto, Nigeria’s famed "Seat of the Caliphate," one could say the NCS has taken its case to God.

Truly, Nigeria Customs could do with plenty of prayers. Mr. Okindja Bernari, a former deputy chief of Customs for 10 years in Gabon and a member of that country’s delegation to the African Union customs bosses’ conference, held in Abuja in May 2007, revealed that the staff strength of the Central African state’s Customs is 500. This didn’t come as much of a surprise considering that Gabon’s population is roughly one million. This translates as less than one percent of Nigeria’s inhabitants, whose customs boast 13, 000 workers.

Thus, whereas the ratio of customs to the overall population of Gabon is 1: 2, 000, Nigeria posts 1: 10, 000 approximately. Roughly 3, 500 personnel make up Ghana's customs service. Weighed against an estimated 20 million population of Ghana, the ratio would be approximately 5, 720. Although this is not better than the Gabonese situation, it further projects the tough plight of NCS officials. In fact, these officers' predicament must be worse by now, because the workforce of Nigeria Customs was put at 13, 000 in May 2007. Subsequently, that figure has been depleted by retrenchment and retirements forced down by public service reforms policy under Chief Olusegun Obasanjo’s presidency.

The extent to which the lay-off has hit the Service is truly hard to measure, but the predicament of officers at the Apapa, Lagos-based Western Marine Command (WMC) paints a heart-rending picture. Hitherto, WMC had 473 personnel. Marine Duty officers accounted for 240, while the rest comprised general duty personnel. Unfortunately, the reforms gale swept away 350 WMC workers. A glimpse at a specific operation of marine customs workforce, gives an idea of the consequent impact of these job cuts. Among their many functions, Marine Customs are charged to neutralize smuggling at sea and in the surrounding waters.

But unlike on land, where a driver and say two or three armed personnel could set out on surveillance, each marine patrol calls for at least five workers. To put a boat to sea, you need an engineer, a navigational officer and the boat driver. After these three specialists, you require at least two or, better still, three general duty workers. With barely 125 workers, this translates as the barest minimum crew for 12 vessels, assuming that there was no ground staff, which is simply unimaginable. It therefore goes without saying that the WMC of the NCS could not possibly put its fleet of 30 boats to optimum use. Considering that the WMC covers Nigeria’s Atlantic coast and all the way to inland waterways in the northern extremes of Sokoto and Kebbi States, its fleet of 30 must be grossly inadequate.

It didn’t come as a surprise, when Comptroller O. O. Eneh, Customs Area Controller (CAC) of Western Marine Command (WMC), admitted that his command could do with more vessels and a larger workforce.
As Comptroller Eneh rued, inadequate manpower "Is a very serious impediment to how to deploy the workforce. Even before the lay-offs, boats were not enough. Now, the manpower situation is even worse. If you are careless, you could send the boys out on a suicide mission." Truly, sending out a patrol team ill-equipped could be fatal for Marine Customs, as was the case, when suspected smugglers killed nine WMC personnel in one fell swoop. Eneh again: "A lot of things happen on the high seas. If you don’t block the high seas, it is very difficult to police the coastal areas."

Buba: Cat with nine lives
There is a nagging feeling that many observers trailed the Customs to Sokoto to witness what they suspect is the valedictory confab to be presided over by the incumbent NCS Comptroller General, Elder Buba. Interestingly, however, such was the thinking last year, when the annual summit took place in the Ogun State town of Otta. But like a cat with nine lives, the Birom-born Elder Buba has lived an additional year as Customs boss. And who knows, the man saddled with steering the NCS through turbulent seas, arising from the so-called reforms, which have translated into possibly the most radical changes in the history of the service, could live to fight another year.

The ongoing reforms have seen to telling depletion of workforce in this service, which was already groaning under acute shortage of manpower. Curiously, there has not been any recruitment into Nigeria Customs for over 15 years! Moreover, the reform exercise has also culminated in a dampening of morale among officers, who suddenly found themselves demoted by several ranks. But this is not the major reason "Travels" tailed Customs to Sokoto.

Buba is the 27th chief of Nigeria Customs, since that body’s inception in 1862, when the British Vice Consul at Badagry, Mr. Thomas Tickel, was appointed head of customs for the colonial administration. Going by the Book, "Nigeria Customs Service: Law and Practice" by Omale Musa, the first Customs station in Nigeria was established in the ancient settlement of Badagry. The root of Customs service in Nigeria is therefore traceable to that littoral southwestern town, where the then colonial vice consul was appointed Collector of Customs for Lagos Colony in 1862. But, according to Martins S. Ikhilae, author of the "Nigerian Maritime Industry in perspective," "Nigeria Customs Service was established in 1891 by Nigeria’s former colonial masters (Britain)."

Whether Customs service began in Nigeria in 1862 or 1891, the truth is that the NCS is one of the oldest institutions in the country. Although the geographical entity called Nigeria had not yet come into being, when customs office was established in Badagry in 1862, the truth remains that the history of customs service in Nigeria dates as far back as to 1862, even though other customs stations were later floated. In 1891, for example, the British colonial authorities had launched a Customs Service for the collection of revenue in the then Niger Coast Protectorate. A Briton, Mr. T. A. Wall, was appointed the founding chief of this Niger Coast Protectorate Customs.

Sokoto not nearly far enough
If Sokoto was chosen because its distance from Lagos would discourage swamming by the predominating southwestern-based Nigerian Media, that aim was defeated, for reporters and observers are here in their droves. When it comes to Nigeria Customs, even Papua New Guinea would not be far enough. Nigeria Customs Service is permanently under watch because of its vital roles. The statutory duties of NCS are numerous, and some of them outright onerous. From the traditional role of collector of duty on Excise as well as Exports and Imports, Customs business in Nigeria nowadays also involves Enforcement of compliance with government policies on importation, exportation, manufacturing and even aspects of international trade and keeping of records of currency that cross-border travellers take with them.

In fact, the National Bureau of Statistics (NBS) was actually carved out of the then Department of Customs and Excise in 1947. But this historic role of the NCS as a record-keeper was unknown to most people, until the minister of National Planning reminded Nigerians last Monday in his paper "Generating Trade Statistics for National Planning," presented on the opening day of this year's Comptroller General of Customs Conference. It could be recalled that the Nigeria Postal Service (Nipost), once known as Department of Post and Telecommunications (P & T), also emerged from the former Department of Customs and Excise. Such is the importance of the NCS. Nigeria Customs also regulate clearing and forwarding business through its statutory powers to issue license to deserving agents. Additionally, Nigeria Customs is also tasked to prevent smuggling and abort attempts to bring in or take out goods illegally.

In fact, Customs are also involved in escort of goods, as exemplified by NCS personnel that accompany mails and parcels from Nigeria bound for Benin Republic in the Direct Mail Delivery (DMD) deal between the two neighbouring West African countries. Until 2005, international mails and parcels from Nigeria had to go through Europe before final delivery to another West African destination and vice versa. The DMD put an end to this circumlocution, which had considerably slowed down the speed of delivery of mails.

Since the flag-off of the DMD in 2005, and up till April 2007, a total of 487 Mail Bags, conveying letters, express parcels and so on, were delivered inward, while 2, 710 correspondences went outward within the same period. Customs personnel serving at Seme Border have continued to provide escort services for these mails and parcels from the Murtala Muhammed International Airport to Seme Badagry and vice-versa.

Another unique example of Customs service could be seen in the Joint Committee on Commerce (JCC) agreement between the Nigerian government and her Benin Republic counterparts. Under the JCC, goods that are banned from importation into Nigeria, could still be allowed into the country duty-free, provided such items were manufactured in Benin using a minimum of 75 percent local content. To ensure compliance with the terms of reference of the JCC, the NCS authorities opened an office in Cotonou to effectively monitor the scheme.

Perhaps, the most popular role of the NCS is that it is the nation’s second largest revenue earner after petroleum exports. For example, between January and end of October 2007, the NCS grossed over N191 billion into the nation's coffers. Interestingly, the Service was given a target of N231 billion for the whole year. In Gabon, the local customs annually gross an average of CFA 250 million. The majority of this sum, which is roughly N70 million or 0.5 million US dollars, comes from petroleum taxes. At the end of the day, the yearly collection by Gabonese customs boils down to barely 20 per cent of the annual earnings of Nigeria Customs, which nets an average of 2.3 billion US dollars from various duties, tariffs and so on. Mr. Robert Kwami, Deputy Commissioner of Ghana's Customs Excise and Preventive Service (CEPS), revealed the local customs' collection usually amounts to roughly 50 per cent of the revenue of the neighbouring nation. The Ghanaian collection is therefore similar to the situation in Germany, where earnings by customs account for 50 per cent of the European country's total tax revenue. Such is the role of customs to a nation's economy.

Aside its staggering revenue collection, the NCS is also cardinal to the nation’s security by making sure that harmful items are not brought into the country. Such unwanted goods could be drugs, arms and ammunition, expired consumer products such as cosmetics or food items, among others. Sadly, however, NCS personnel, like operatives of other security agencies in the country, work under daunting conditions, despite their invaluable contributions to the national treasury and security. Office and barracks accommodations are scarce and, where available, ill equipped. Furthermore, patrol vehicles are grossly inadequate, weapons are obsolete and largely dysfunctional, among other deficiencies.

In Francophone societies, Customs are called "Les Douane," while German-speaking people call them "Der Zoll." Whatever they are called, Customs frequently encounter criticism because of their functions, which are primarily collection of revenue and enforcement of compliance with government policy on manufacturing, import, exports and so on. Why then, are Customs often the butt of fierce criticisms, despite their incalculable contribution to society? Comptroller Eneh of the WMC said public attitude to Customs was not surprising. "Nobody loves a tax collector. It’s in the Bible, how many people loved Zaccheus? Zaccheus was a tax collector, and tax collectors are never liked. Yet, society cannot do without them."

As has been the case, since the inception of the annual CG Confab, the convergence again brought hundreds of people together. Participants came from Africa, Europe, Asia and virtually everywhere. From Ghana, apart from the team leader, Mr. Kwami, the delegation included two ladies, Novisi Aryene and Angelina Bainiah, both Assistant Commissioners for International Affairs and Information Technology respectively in Ghana's CEPS. There were representatives of UNCTAD, Webb Fontaine, Association of Nigeria Licensed Customs Agents, ANLCA, Shipping Lines, and other stakeholder bodies.

Moreover, the breaks offered the participants to unwind, such as a cocktail held at the Sokoto Presidential Villa, Monday night offered the visitors and even many Sokoto inhabitants the opportunity of seeing Alhaji Abubakar Alhaji, a former Finance Minister and incumbent Sardauna of Sokoto. Sokoto truly held ground, as had been predicted. But there was scarcity of hotel accommodation because the customs confab coincided with events by Nigerian Navy, among others.

Much motion, little movement
The theme for the 2007 summit, which ends tomorrow is "Toward 48-hour Clearance." To this, the scoff of many cynics would be "easier said than done." As the Customs chief queried, 48 hours of what? Basic structures, facilities and infrastructures are lacking or inadequate. The whole idea of import regulation seems good but the implementation is evocative of putting the cart before the horse, Buba observed. The NCS helmsman lamented that all stakeholders are scrambling to make money, instead of bringing foreign direct investment into Nigeria. The NCS, Buba stressed, had never, ever, pretended to be perfect but there was a need to call a spade its real name, the CG declared. Elder Buba however added that the focus should now be on how to make things work, instead of on trading blames.

Much as everyone, apparently, would want clearance in a minute, numerous obstacles stand in the way to speedy release of goods. Out of ignorance, countless critics are wont to put the blame on Customs; but clearing, as M. Robert Kwami, Deputy Commissioner of Ghana Customs Excise and Preventive Service (CEPS), aptly observed is not customs business alone. Unfortunately, clearing agents, banks, shipping companies, serivce providers, port concessionaires et cetera were buck-passing during the Sokoto confab.

To worsen matters, Elder Buba lamented that numerous hiccups experienced two years into the implementation of Destination Inspection would have been ironed out a long time ago, were the NCS, principal implementers of the new import guideline, involved ab initio in the planning stages. Billions of dollars have been poured into port reforms, ports built with public funds have been leased, on what many consider ridiculous terms to concessioners, multi-million dollar consultants had been hired for the transition period but little progress seems to have been made. For example, in a year, the three-year term with the United Nations Conference on Trade and Development (UNCTAD), but it is doubtful targets would have been met by then.

There is also the issue of arrogance on the part of Service Providers (SP) that willfully transfer cargoes from pillar to post and expect importers/clearing agents to bear the financial brunt. Who should incur the cost of such arbitrary expenditure? These were some of the issues that came to the fore on the second day of this year's summit. As usual, the NCS boss did not mince words, when he chastised some international contractors for refusal to attract foreign direct investment to Nigeria. Such corporate bodies are like carpetbaggers that want to wait until they raise enough resources locally before carrying out their side of the bargain. Unfortunately, for these interlopers, time is running out. That a contract was supposed to last a decade is no reason to wait ten years before embarking on execution, Buba intoned.

Nigeria Customs, global interest
It is worth noting that Nigerians are not the only people following with keen interest developments at the Sokoto summit. Usually, World Customs Organization (WCO), the United Nations’ Conference on Trade and Development (UNCTAD) and numerous other international bodies monitor activities in Nigeria, which accounts for roughly 60 per cent of the West African population. In fact, 40 per cent of all imports to West Africa lands at Apapa Port in Lagos. Several thousands of kilometers away, the European Union (EU) is probably monitoring discussions at the Sokoto Summit, owing to Nigeria’s influence in the sub region, and on the African continent as a whole.

This year’s CG summit draws to a close on November 30, the eve of December 2007, when Nigeria as well as other African, Caribbean and Pacific countries were supposed to sign a trade deal with European Union members. The view of top brasses of NCS and other Nigerians meeting in Sokoto is that their continent was far from making up its mind as to whether to enter into such a pact or not. The pact concerns a proposed mutual Free Trade Area (FTA) called EPA, Economic Partnership Agreement. Interestingly, EU member nations had, sources say, unilaterally given a 10-year deadline for launch of EPA, which seeks to introduce duty free trade for goods manufactured in EU countries in ACP zone and vice versa.

Speaking on this issue, months ago in Abuja, this is how Elder Buba alluded to the anxiety of African countries as regards EPA, which many see as tantamount to a pact between unequal partners: "The Gross Domestic Product (GDP) of Germany alone, is higher than that of all sub-Sahara Africa." African countries, Buba intoned, would be overwhelmed by European factories. Buba had also revealed: "Intra-African trade accounts for barely 10 per cent of trade in the continent." Could African nations, therefore, claim to have thrashed out every ramification of the impact of EPA? In the light that the EU was over 50 years old, that body must have over the years ironed out the details and strategy for such agreements, Buba intoned.

It could be recalled that during an African Union Customs helmsmen summit held in the Nigerian capital from May 7 to 11, 2007, participants had kicked against the proposed pact, which many described as lop-sided. Although the EU gave a 10-year deadline to enable ACP member nations study proposals for the agreement, barely six months to the end of that moratorium, the meeting of African Union Customs chiefs held in the Nigerian capital revealed that the Black Continent was at least four years from ready to endorse the European deal. In a nutshell, EPA seeks to give EU countries a Free Trade Area (FTA) in all of ACP, and vice versa. While most African countries are importer nations, EU member societies are largely exporter nations.

Could African countries, therefore, seriously compete with European manufacturers, given the edge in technology and relevant strategies? This is one of the questions bothering African Union Customs chiefs, who are supposed to advise their governments on how to negotiate with the EU. On its part, the EU may point to grants and other aids as compensation for whatever losses African nations may incur due to EPA. Even at that, African Union member nations are wary of donations from Europe or anywhere for that matter. Critics say international aid sometimes tantamount to giving with one hand, and surreptitiously taking back with the other.