Nigeria Customs and its Many Ways of Facilitating Trade, By Abdulsalam Mahmud
There is one thing that accelerates the socio-economic growth of any nation. It is trade or better still, commercial activities. Trade, business or commercial activities, however, only thrive when a government is able to provide an enabling environment for businesses and investors to legitimately conduct their economic affairs.
Nigeria, though an economic giant in Africa, is still not the preferred destination of many developed nations and multinational business organisations for investment. And the reason is not far fetched. There is no ease in doing businesses on our shores.
Against this backdrop, the Nigeria Customs Service, NCS, has remained obstinate in fashioning out a workable solution to the problem of poor national trade. The agency, indeed, has been championing effective strategies and ways to boost and enhance trade facilitation in the country.
Under the leadership of its Comptroller General, Bashir Adewale Adeniyi, the NCS has developed initiatives towards actualizing the federal government’s dream of upgrading the volume of trading activities in Nigeria.
Recently, the law enforcement cum revenue-generating agency, in conjunction with the Nigerian Energy Support Programme (NESP), launched an impactful and beneficial scheme called ‘Advancing Ruling’.
The initiative, among other things, is aimed at enhancing trade facilitation, while also creating a more transparent business environment for the NCS’ stakeholders in Nigeria’s trade space.
Speaking during the launching of the project, CGC Adeniyi described ‘Advanced Ruling’ as a critical mechanism that allows traders to obtain binding decisions from Customs administrations on the classification, origin, and valuation of goods before importation.
He emphasised that the project will also serve as a tool for reducing compliance costs and fostering a conducive business environment for traders.
He said, “Today, we shall be taking the first step towards launching the Nigeria Customs Service Advance Ruling, starting with stakeholder engagement.”
The Customs helmsman, who recognised the significance of the project as it aligns with the World Customs Organization (WCO) and the World Trade Organization (WTO), also emphasised its relevance in facilitating both domestic and international trade, while also promoting Customs compliance.
“According to the WCO and the WTO, Advanced Ruling enhances predictability and transparency in customs procedures, streamlining trade processes and minimising delays, uncertainties, and costs associated with Customs clearance,” Adeniyi said.
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Commending President Bola Ahmed Tinubu for laying the ground to enhance the economy of Nigeria and supporting their agency, he further emphasized that the launch of their ‘Advanced Ruling’ system at this time aligns with the policy directive of President Tinubu’s administration to facilitate trade for legitimate traders.
He said, “This is reflected in the Policy Advisory Document of the government, which signifies recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.”
Adeniyi also revealed that their NCS has made all arrangements to conduct workshops and sensitization programmes at Customs Area Commands to ensure that all stakeholders are well-informed and prepared to utilise this new mechanism effectively.
He then applauded the German International Cooperation Agency (GIZ) and other partners for their unwavering partnership and continued support of achieving a significant milestone in trade facilitation activities under the Nigeria Energy Support Programme.
“It is essential to acknowledge that initiatives like Advanced Ruling necessitate investments in capacity building for both officers and stakeholders. We are committed to leveraging our internal capacity while exploring collaboration opportunities with external partners like GIZ,” said the Customs boss.
At the heart of the Advance Ruling System, let it be said, lies its ability to enhance predictability and transparency in customs procedures. By enabling traders to obtain binding decisions beforehand, the system tremendously minimizes delays, uncertainties, and costs associated with customs clearance.
The implementation of the Advance Ruling System truly marks a paradigm shift in Nigeria’s trade ecosystem. It also signals a departure from traditional customs procedures towards a more transparent and efficient framework. By providing traders with upfront clarity on goods classification, origin, and valuation, the system will greatly instill confidence, further reduce compliance burdens, and ultimately stimulates economic growth.
Additionally, the system’s alignment with global best practices endorsed by the WCO and the WTO positions Nigeria as a progressive player in the international trade arena. It also underscores the country’s commitment to fostering a business-friendly environment: one that will attract investments, promote competitiveness, and drive sustainable development.
Beyond doubt, the successful implementation of the Customs’ Ruling System is poised to unleash a ripple effect across various sectors of the Nigerian economy.
Finally, as traders, corporate firms and investors benefit from streamlined customs procedures and reduced compliance costs (thanks to the birthing of the Advance Ruling project), it is trite to say that businesses will thrive, supply chains will become more efficient, and Nigeria’s position as a leading trade hub in Africa will be further solidified.
*Mahmud, Deputy Editor of PRNigeria, is reachable via: [email protected]*.
