SEREC Commends Customs for Adopting Digital Transformation in War Against Smuggling, Revenue Evasion
CGC ADENIYI
• Describes bonded terminals as conduit for smuggling of pharmaceuticals
By Francis Ugwoke
The sustenance of digital transformation and port automation in customs administration is imperative in combating cartels and smuggling in Nigeria’s international trade, the Sea Empowerment and Research Centre (SEREC) has said.
In a press statement, the Head of Research of the organization, Dr. Eugene Nweke, while noting that the Customs Service has been grappling with the menace of smuggling and revenue evasion, perpetrated by sophisticated networks of cartels and syndicates, opined that digital transformation and port automation remain among the ways to battle such trade issues.
Nweke said that these illicit activities have been sustained by insider trading networks within ministries and regulatory agencies, as well as the porosity of border frontiers.
However, he added that the Comptroller General of Customs (CGC) Bashir Adewale Adeniyi’s administration has taken a bold step in tackling these activities through digital transformation and port automation.
“The SEREC commends the Comptroller General of Customs (CGC) Bashir Adewale Adeniyi MFR for his policy thrusts on trade facilitation, revenue optimization, digital transformation, and stakeholder engagement. These initiatives have shown promise in tackling the menace of cartels and smuggling in Nigeria’s international trade and shipping space”, he said..
According to him, “Cartels and smuggling activities have been a long-standing issue in Nigeria’s international trade and shipping space. These activities have been sustained by sophisticated networks and insider trading networks within ministries and regulatory agencies. Bonded terminals have been particularly vulnerable to exploitation by cartels, with many being used as conduits for trafficking routes.
“The SEREC believes that the CGC’s administration is taking the right steps to combat cartels and smuggling in Nigeria’s international trade and shipping space. We urge continued support for these initiatives and look forward to working with the CGC’s administration to promote transparency and accountability in customs operations”.
Nweke said that the bonded terminals have become a conduit for smuggling activities, particularly in the importation of prohibited pharmaceutical products.
“ A recent investigation revealed that illicit drug syndicates partner with local accomplices and customs licensed agents to establish bonded terminals, increasing the rate of drug trafficking in Nigeria. The CGC has described these individuals as “Merchants of Death” and has vowed to revoke the licenses of bonded terminals used for importing and clearing dangerous and prohibited goods”, he said.
Part of the statement reads :
“The Impact of Digital Transformation on Customs Operations*
The NCS has made significant progress in digital transformation, enhancing its operational capabilities through intelligence-led enforcement strategies and real-time collaboration with regulatory agencies. The CGC’s policy thrusts on trade facilitation, revenue optimization, digital transformation, and stakeholder engagement have shown promise in tackling cartels and smuggling.
“The Importance of Sustaining Digital Transformation*
Sustaining digital transformation in customs administration is critical in the war against smuggling and revenue evasion. It enables the NCS to track and monitor cargo movements, reduce opportunities for corruption, and enhance revenue collection. The CGC’s administration has demonstrated commitment to this cause, and the results are evident in the seizures of prohibited goods and the recovery of revenue.
“The sustenance of digital transformation and port automation in customs administration is imperative in combating cartels and smuggling in Nigeria’s international trade. The CGC’s administration has shown commitment to this cause, and continued support for these initiatives will promote transparency and accountability in customs operations, ultimately enhancing the nation’s economic security”.
He recommended the following:
“Continue Digital Transformation*: Strengthen digital transformation initiatives to enhance customs operations and reduce opportunities for cartels to exploit manual processes.
– *Enhance Collaboration*: Foster greater collaboration with regulatory agencies to share intelligence and best practices in combating smuggling and revenue evasion.
– *Review Bonded Terminal Operations*: Review and update policies and procedures governing bonded terminal operations to prevent exploitation by cartels.
– *Increase Transparency and Accountability*: Promote transparency and accountability in customs operations to build trust with stakeholders and reduce opportunities for corruption”.
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