Aniebonam: Greed is Why Importers Lose Billions of Naira Goods
DR. BONIFACE ANIEBONAM
Exclusive Interview
On annual basis, operatives of the Nigeria Customs Services (NCS) seize goods which duty paid value runs into billions of Naira. Last year, the Service seized goods worth over N16.049bn. By end of this year, this figure would probably rise as has been the case in the past. This is despite warnings from the Customs and associations of customs agents. The implication is that the affected businessmen appear not to be bothered over their losses, but they do. In this interview with SHIPPING DAY, the Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam, attributes the problem to greed by importers whose main target is to maximize profit. Aniebonam also spoke on the benefits of the recent policy by the Central Bank of Nigeria (CBN) which dropped the foreign exchange restriction on the 43 items, among other industry issues. Excerpt..
Looking at the era of Retd Col. Hammed Ali as Customs Comptroller General , what would you suggest to the present Comptroller General, Bashir Adewale Adeniyi, as policy change?
The era of Ali was not as bad as that. Ali for obvious reasons did his best from his limited knowledge. That you must give to him. I think where we had issue was the technical aspect of the job. Trade dispute is not like an armed robbery offence. Trade is a matter of negotiation, especially when you have not erred in the area of prohibition list, absolute prohibition. Some goods that are prohibited can be given duties to pay with serious penalty. But falling under absolute prohibition is a no go area. So that is the aspect that you need a customs officer to handle because at the end of the day, if you seize all these goods, they still come back to the market. Government will even lose revenue. But I think Ali was too strict on matters of that nature. The mess of the former CBN Governor was part of the problem of the industry, his policy direction. He said that CBN can carry out oversight function, but that they don’t have anything to do with physical trade. But you know Mr Godwin Emeifiele dabbled into it and distorted and disorganized trade. In fact, the damage is unbelieveable because you are making laws on trade without involving the Nigeria Customs Service. Even the Finance Ministry was not involved. For instance, the 43 items that were removed from benefitting from the forex. And he forgot that there are provisions for not valid for foreign exchange imports, bill for collection. These are trade related issues, but this man jettisoned all that. In doing that, he contravened the customs laws because customs law provides for leeway for such things.
Talking about the present policy on the issue of 43 items, what are the benefits to the economy?
It is revenue. If you go to the ports now, you will see the revenue has improved. All you need to do is to do the honest declaration for the customs purpose and that will give customs the opportunity to give you the appropriate assessment of duty, and you pay and carry your goods. As opposed to the time they barred the 43 items. Although the 43 items were not completely barred but technically banned. Because every import into Nigeria must have a registered Form M, in an authorized bank. It means you are bringing these goods without declaring them. Now, you go to customs operations, the Pre-arrival Assessment Report (PAAR) gives you opportunity to make declaration. But because you cannot register Form M, you now put those goods inside container under Destination Inspection, which is customs examination. The customs does not see the cargo as prohibition. They will rely on section 28 to do what is called Bill of Sight and they collect their duties with penalty. But what about the inherit abuse, the corruption? So, you can as well declare those items depending on who is the proper custom officer handling that. There could be a compromise and government will lose that revenue, that was exactly what was happening.
There was a report that the Customs CG was going to dialogue with the CBN so that the importers of the 43 items will be benefitting from forex, is the case now?
The CG has reason for what he is saying. Primarily, his duty is to collect appropriate duty, facilitate trade, try as much as he can to stem smuggling activities. And I have tried to explain to you, what do you understand by smuggling? Smuggling is not only importation of prohibited items. Any attempt you make not to declare goods for customs purposes, you are a smuggler. Because the intention is to evade customs duty. And any other item that may be unwanted. That is non-disclosure of imports so the CG needed the support of everybody which is to his advantage. Because the more you make proper declaration, it builds friendship. Because if you keep on seizing people’s goods, you are a human being, and you are not going to remain in customs for ever. So you have personally created enmity for yourself. Ali is out now, is he not a common manlike me now? Wale will serve and go, he will be come a common man, like any other person, and so also in other organisations. So discretion is important. When you are given a responsibility, you have to be on the path of the law and mitigate what you are supposed to do without injuring government responsibility. That is why the customs has what it called golden rule or what they call ‘seven C’. It is an operational guideline of all officers and men in the course of doing their duty. That is what guides them in taking decision in any matter
Despite all the efforts by the freight forwarders’ associations, Nigeria Customs Service to preach against smuggling and other malpractices by importers to avoid seizures, we still find out that the Customs Units have continued to record massive seizures, does it mean that some importers don’t care about losing their goods?
That is why they (Customs FOUs) are there. They are intervention force. If human beings are patriotic, if we are doing things within the ambit of the law, we don’t even need customs in the ports, you can as well go to bank , pay and carry your goods and go. But government is aware we are going to cheat, because we are human beings, that is why government now says, okay, Customs come and protect the interest of the government. So, what would have happened if government is not there? It means no generation of revenue for government as far as imports and exports are concerned, because Nigerians will not pay, nobody wants to pay tax.
When you discuss matter of this nature, the first law of God is choice. And when you are dealing with human beings, you are not in a position to know what they will do. Some people are greedy and a business man is going to business to maximize profit. And so, if he sees any way he will maximize profit, he will do that. Again, that is why the checks and balances are there. So expectation is not normal but in all form of business, these things are bound to occur. But what is important is the capacity of the agents of the government to respond and make sure that the interest of government is protected.
How would describe the relationship between your association and the management team of customs since the new CG assumed office?
You will not expect anything to the contrary. In the first place, I am the Founder of NAGAFF, I am an ex-customs officer. And you don’t expect me to go to the public to castigate customs. I cannot do that. And NAGAFF will not do that. I am the leader. I have told you one, two things which I think are appropriate. We engage customs internally and I think that is more responsible in handling matters. It is not about going to the main road and be shouting. That will be taken to be a blackmail, especially when we have access to the customs. Our association is in responsible partnership with the customs. We are corporate body known to law duly recognized by government of Nigeria and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN). We are standing on our own. If you go to politics, you talk about opposition, opposition which means a check. But today in Nigerian scene politically, you discover that the kind of opposition we have here is to the extent that there is nothing that government does that is right. That is a wrong approach to opposition. Even in New Nigerian People’s Part (NNPP) where I hold sway, I have increasingly made them to understand that NNPP is not an opposition party to anybody – in the context of opposition being held in Nigeria. We are rather responsible partners to government. Election is over, let’s move on and see how we can get Nigeria right. So coming to NAGAFF, where I hold sway also, it is on record. I am not saying that customs does everything right, I cannot say that, neither would I say that all those who come to do business will claim that everything is right on our own side. So, we keep on balancing. So it is all about all leadership in every sector of the economy. So that you can give direction on what will be the most appropriate approach to issues.
The Association of Nigerian Licensed Customs Agents (ANLCA) had an election recently and the executive has since been inaugurated, what will be your relationship after years of disagreement?
ANLCA is a sister organization to NAGAFF and we all have a common goal. You know the position of NAGAFF is very clear from day one, responsible partnership either to customs, NPA, media , any of the critical stakeholders. That is our position. So, it is left for the new executive of ANLCA to key into responsive partnership because the whole thing is all about the interest of our profession. That is the position of NAGAF. If you want to go against NAGAFF, good luck to you. If you want to work with NAGAFF, good luck to you. Both are independent but the best way is to collaborate and push a common goal for the good of all of us. Take for instance, how do you explain that CRFFN is not working. How do you explain CRFFN is the authority that we have to take into consideration in the height of our professional standard because the emphasis as far as CRFFN is concerned is training and retraining, pushing professional standard and code of ethical approach to our profession so that we can come up and be part of professionals in this country. This is because CRFFN standard is that you undergo a formal training that you will be certified as a professional. The concept of CRFFN is to take us to the elite bodies of this country. So , except you want to take me back, if CRFFN were not meant to fail at the first maiden election, we won’t be saying all these we are saying, because our good friend, late Capt Biu of the Nigerian Shippers’ Council (NSC), who had a mandate to midwife CRFFN and he got it wrong. You know to destroy is very easy to rebuild is a problem. That is where we are.
… All these problems you are seeing in the ports are things for instance, NAGAFF talked about 20 years ago. The deep seaport, the call-up system of cargo. When our ports went into second degree of development we advocated for truck terminals to be established outside the ports in call up system. Look at now, what we are doing, is it working? Because we are very good in make-shift arrangement. Look at from Apapa towards Surulere that road should be 8-lanes and government has what it takes. You can see where government is breaking houses, somewhere in Festac areas. So government is good in breaking things for public interest, so what stops government from opening up those places for free flow of cargo. Somebody has to take the lead. So it is not that ideas are not there, but what is the will? The worst scenario in our system is enforcement of law. Laws are made to be enforced, laws are made to be obeyed, so who does that?
So the relationship between us and our sister association is very cordial and like I said as I am still alive, some of us were members of ANLCA before. So ANLCA is for licensed customs agents, in other words, you cannot be their member if you are not licensed by customs. And that license is for corporate body, not an individual. The difference is that membership of NAGAFF is talking about professionalism, natural persons, it is only a natural person that can be called a professional. And that brings us to the issue of training, requiring knowledge and certification. You cannot certify a corporate body as a professional body as a professional. And that is what CRFFN is set out to achieve. Because when you have knowledge, you will do the right thing.
Apart from what you have said, any advice for the CG on how to improve on trade facilitation?
What the CGC needs to do is to take the battle to the home front, and don’t be in a hurry. The CGC should find time, Hammed Ali was in NAGAFF, Dikko was in ANLCA and NAGAFF. The best is not in calling us to meet him in Hotels and directing that one or two, may be the President should come. Go and meet those people in their colonies and don’t be in a hurry, sit down and listen to them. It will help you to make your policy. Go to NAGAFF, ANLCA Headquarters , at least these two, don’t be in a hurry, sit down with them, they are the people that are your critical partners in the ports by virtue of their roles in revenue generation. Sit down and listen, there are people who don’t have access to you, they will have opportunity to tell you, CG, this is it. This level of people you call to meet you in hotels are people you cannot guarantee what they are telling you. Because they don’t know what they will tell you and you will get angry. And to some extent, their operations will be in jeopardy. Nobody will tell you what you are supposed to know. Even though as a groomed officer, you have an idea, but it is good you hear it. That is leadership. With such meeting, those boys in the ports will tell you what they are seeing. And you take note and go back. If you think if you go to hotels, you can get useful information from the leaders of the associations, what are they going to tell you? They will tell you what you want to hear. And when you visit, don’t tell them you will take one, two questions, sit down, you are there to serve them, when they exhaust what they want to say, you go, you come out smoking, that is when you make popular policy.
On annual basis, operatives of the Nigeria Customs Services (NCS) seize goods which duty paid value runs into billions of Naira. Last year, the Service seized goods worth over N16.049bn. By end of this year, this figure would probably rise as has been the case in the past. This is despite warnings from the Customs and associations of customs agents. The implication is that the affected businessmen appear not to be bothered over their losses, but they do. In this interview with SHIPPING DAY, the Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam, attributes the problem to greed by importers whose main target is to maximize profit. Aniebonam also spoke on the benefits of the recent policy by the Central Bank of Nigeria (CBN) which dropped the foreign exchange restriction on the 43 items, among other industry issues. Excerpt..
Looking at the era of Retd Col. Hammed Ali as Customs Comptroller General , what would you suggest to the present Comptroller General, Bashir Adewale Adeniyi, as policy change?
The era of Ali was not as bad as that. Ali for obvious reasons did his best from his limited knowledge. That you must give to him. I think where we had issue was the technical aspect of the job. Trade dispute is not like an armed robbery offence. Trade is a matter of negotiation, especially when you have not erred in the area of prohibition list, absolute prohibition. Some goods that are prohibited can be given duties to pay with serious penalty. But falling under absolute prohibition is a no go area. So that is the aspect that you need a customs officer to handle because at the end of the day, if you seize all these goods, they still come back to the market. Government will even lose revenue. But I think Ali was too strict on matters of that nature. The mess of the former CBN Governor was part of the problem of the industry, his policy direction. He said that CBN can carry out oversight function, but that they don’t have anything to do with physical trade. But you know Mr Godwin Emeifiele dabbled into it and distorted and disorganized trade. In fact, the damage is unbelieveable because you are making laws on trade without involving the Nigeria Customs Service. Even the Finance Ministry was not involved. For instance, the 43 items that were removed from benefitting from the forex. And he forgot that there are provisions for not valid for foreign exchange imports, bill for collection. These are trade related issues, but this man jettisoned all that. In doing that, he contravened the customs laws because customs law provides for leeway for such things.
Talking about the present policy on the issue of 43 items, what are the benefits to the economy?
It is revenue. If you go to the ports now, you will see the revenue has improved. All you need to do is to do the honest declaration for the customs purpose and that will give customs the opportunity to give you the appropriate assessment of duty, and you pay and carry your goods. As opposed to the time they barred the 43 items. Although the 43 items were not completely barred but technically banned. Because every import into Nigeria must have a registered Form M, in an authorized bank. It means you are bringing these goods without declaring them. Now, you go to customs operations, the Pre-arrival Assessment Report (PAAR) gives you opportunity to make declaration. But because you cannot register Form M, you now put those goods inside container under Destination Inspection, which is customs examination. The customs does not see the cargo as prohibition. They will rely on section 28 to do what is called Bill of Sight and they collect their duties with penalty. But what about the inherit abuse, the corruption? So, you can as well declare those items depending on who is the proper custom officer handling that. There could be a compromise and government will lose that revenue, that was exactly what was happening.
There was a report that the Customs CG was going to dialogue with the CBN so that the importers of the 43 items will be benefitting from forex, is the case now?
The CG has reason for what he is saying. Primarily, his duty is to collect appropriate duty, facilitate trade, try as much as he can to stem smuggling activities. And I have tried to explain to you, what do you understand by smuggling? Smuggling is not only importation of prohibited items. Any attempt you make not to declare goods for customs purposes, you are a smuggler. Because the intention is to evade customs duty. And any other item that may be unwanted. That is non-disclosure of imports so the CG needed the support of everybody which is to his advantage. Because the more you make proper declaration, it builds friendship. Because if you keep on seizing people’s goods, you are a human being, and you are not going to remain in customs for ever. So you have personally created enmity for yourself. Ali is out now, is he not a common manlike me now? Wale will serve and go, he will be come a common man, like any other person, and so also in other organisations. So discretion is important. When you are given a responsibility, you have to be on the path of the law and mitigate what you are supposed to do without injuring government responsibility. That is why the customs has what it called golden rule or what they call ‘seven C’. It is an operational guideline of all officers and men in the course of doing their duty. That is what guides them in taking decision in any matter
Despite all the efforts by the freight forwarders’ associations, Nigeria Customs Service to preach against smuggling and other malpractices by importers to avoid seizures, we still find out that the Customs Units have continued to record massive seizures, does it mean that some importers don’t care about losing their goods?
That is why they (Customs FOUs) are there. They are intervention force. If human beings are patriotic, if we are doing things within the ambit of the law, we don’t even need customs in the ports, you can as well go to bank , pay and carry your goods and go. But government is aware we are going to cheat, because we are human beings, that is why government now says, okay, Customs come and protect the interest of the government. So, what would have happened if government is not there? It means no generation of revenue for government as far as imports and exports are concerned, because Nigerians will not pay, nobody wants to pay tax.
When you discuss matter of this nature, the first law of God is choice. And when you are dealing with human beings, you are not in a position to know what they will do. Some people are greedy and a business man is going to business to maximize profit. And so, if he sees any way he will maximize profit, he will do that. Again, that is why the checks and balances are there. So expectation is not normal but in all form of business, these things are bound to occur. But what is important is the capacity of the agents of the government to respond and make sure that the interest of government is protected.
How would describe the relationship between your association and the management team of customs since the new CG assumed office?
You will not expect anything to the contrary. In the first place, I am the Founder of NAGAFF, I am an ex-customs officer. And you don’t expect me to go to the public to castigate customs. I cannot do that. And NAGAFF will not do that. I am the leader. I have told you one, two things which I think are appropriate. We engage customs internally and I think that is more responsible in handling matters. It is not about going to the main road and be shouting. That will be taken to be a blackmail, especially when we have access to the customs. Our association is in responsible partnership with the customs. We are corporate body known to law duly recognized by government of Nigeria and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN). We are standing on our own. If you go to politics, you talk about opposition, opposition which means a check. But today in Nigerian scene politically, you discover that the kind of opposition we have here is to the extent that there is nothing that government does that is right. That is a wrong approach to opposition. Even in New Nigerian People’s Part (NNPP) where I hold sway, I have increasingly made them to understand that NNPP is not an opposition party to anybody – in the context of opposition being held in Nigeria. We are rather responsible partners to government. Election is over, let’s move on and see how we can get Nigeria right. So coming to NAGAFF, where I hold sway also, it is on record. I am not saying that customs does everything right, I cannot say that, neither would I say that all those who come to do business will claim that everything is right on our own side. So, we keep on balancing. So it is all about all leadership in every sector of the economy. So that you can give direction on what will be the most appropriate approach to issues.
The Association of Nigerian Licensed Customs Agents (ANLCA) had an election recently and the executive has since been inaugurated, what will be your relationship after years of disagreement?
ANLCA is a sister organization to NAGAFF and we all have a common goal. You know the position of NAGAFF is very clear from day one, responsible partnership either to customs, NPA, media , any of the critical stakeholders. That is our position. So, it is left for the new executive of ANLCA to key into responsive partnership because the whole thing is all about the interest of our profession. That is the position of NAGAF. If you want to go against NAGAFF, good luck to you. If you want to work with NAGAFF, good luck to you. Both are independent but the best way is to collaborate and push a common goal for the good of all of us. Take for instance, how do you explain that CRFFN is not working. How do you explain CRFFN is the authority that we have to take into consideration in the height of our professional standard because the emphasis as far as CRFFN is concerned is training and retraining, pushing professional standard and code of ethical approach to our profession so that we can come up and be part of professionals in this country. This is because CRFFN standard is that you undergo a formal training that you will be certified as a professional. The concept of CRFFN is to take us to the elite bodies of this country. So , except you want to take me back, if CRFFN were not meant to fail at the first maiden election, we won’t be saying all these we are saying, because our good friend, late Capt Biu of the Nigerian Shippers’ Council (NSC), who had a mandate to midwife CRFFN and he got it wrong. You know to destroy is very easy to rebuild is a problem. That is where we are.
… All these problems you are seeing in the ports are things for instance, NAGAFF talked about 20 years ago. The deep seaport, the call-up system of cargo. When our ports went into second degree of development we advocated for truck terminals to be established outside the ports in call up system. Look at now, what we are doing, is it working? Because we are very good in make-shift arrangement. Look at from Apapa towards Surulere that road should be 8-lanes and government has what it takes. You can see where government is breaking houses, somewhere in Festac areas. So government is good in breaking things for public interest, so what stops government from opening up those places for free flow of cargo. Somebody has to take the lead. So it is not that ideas are not there, but what is the will? The worst scenario in our system is enforcement of law. Laws are made to be enforced, laws are made to be obeyed, so who does that?
So the relationship between us and our sister association is very cordial and like I said as I am still alive, some of us were members of ANLCA before. So ANLCA is for licensed customs agents, in other words, you cannot be their member if you are not licensed by customs. And that license is for corporate body, not an individual. The difference is that membership of NAGAFF is talking about professionalism, natural persons, it is only a natural person that can be called a professional. And that brings us to the issue of training, requiring knowledge and certification. You cannot certify a corporate body as a professional body as a professional. And that is what CRFFN is set out to achieve. Because when you have knowledge, you will do the right thing.
Apart from what you have said, any advice for the CG on how to improve on trade facilitation?
What the CGC needs to do is to take the battle to the home front, and don’t be in a hurry. The CGC should find time, Hammed Ali was in NAGAFF, Dikko was in ANLCA and NAGAFF. The best is not in calling us to meet him in Hotels and directing that one or two, may be the President should come. Go and meet those people in their colonies and don’t be in a hurry, sit down and listen to them. It will help you to make your policy. Go to NAGAFF, ANLCA Headquarters , at least these two, don’t be in a hurry, sit down with them, they are the people that are your critical partners in the ports by virtue of their roles in revenue generation. Sit down and listen, there are people who don’t have access to you, they will have opportunity to tell you, CG, this is it. This level of people you call to meet you in hotels are people you cannot guarantee what they are telling you. Because they don’t know what they will tell you and you will get angry. And to some extent, their operations will be in jeopardy. Nobody will tell you what you are supposed to know. Even though as a groomed officer, you have an idea, but it is good you hear it. That is leadership. With such meeting, those boys in the ports will tell you what they are seeing. And you take note and go back. If you think if you go to hotels, you can get useful information from the leaders of the associations, what are they going to tell you? They will tell you what you want to hear. And when you visit, don’t tell them you will take one, two questions, sit down, you are there to serve them, when they exhaust what they want to say, you go, you come out smoking, that is when you make popular policy.
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