Customs Service, NLNG and Recalibrating Nigeria’s Economy By Abdulsalam Mahmud

Customs Service, NLNG and Recalibrating Nigeria’s Economy By Abdulsalam Mahmud

Nigeria’s economy, at the moment, is not in its best state. It appears to be anaemic, and not growing in any positive direction. Corruption and ineffective government policies, together with several other challenges, are stunting its growth.

The stoppage of the fuel subsidy regime and naira flotation last year also compounded the misery of the nation’s economy. The appalling condition of our economy has manifested in the frightening statistics of poverty among citizens, together with mind-boggling inflation in the country.

Recent forecasts by the International Monetary Fund, IMF, revealed that Nigeria’s economy, ranked as Africa’s largest in 2022, is set to slip to fourth place this year after a series of currency devaluations.

The IMF’s World Economic Outlook, as reported by Bloomberg, estimated the country’s Gross Domestic Product, GDP, at $253 billion based on current prices this year, behind North African powerhouses Algeria at $267 billion, Egypt at $348 billion, and South Africa at $373 billion.

The report added that South Africa will remain the continent’s largest economy until Egypt reclaims the mantle in 2027. Nigeria, however, is expected to remain in fourth place for years to come, according to the IMF data.

Three months ago, the New York Times in a no-holds-barred article argued that Nigeria is probably in the worst economic crisis of a generation. The Times’ essay followed that of Foreign Affairs and The Economist (two other influential global publications), which had earlier said the same thing under different headlines.

While Nigeria’s economy is not yet in a recession, all other economic indicators have gone south. In fact, the curve will certainly not bend in the short run – apologies to Hon. Dakuku Peterside. It is worrisome that our economy is stagnating when Nigeria, arguably, is one of the most endowed nations, gifted with both mineral and natural resources in vast quantities.

“Statistics on inflation (above 33%), youth unemployment (above 50%), poverty levels (over 133 million multidimensionally poor), the value of the Naira (over 200% decline against dollar in the past year), education (18.3 million out of school children), healthcare (inadequate health facilities and professionals), insecurity (144th position in the 2023 safest countries in the world ranking), and homelessness (24.4 million people without a home) are frightening,” Peterside elaborated in one of his columns in a Nigerian tabloid.

Authorities must do something fast to rescue our economy, which is fast depreciating. An agency like the Nigeria Customs Service, however, deserves kudos. The NCS, long before now, has diligently executed its core mandates, particularly those that relate to driving economic growth.

A week ago, Bashir Adewale Adeniyi, the Comptroller General of Customs (CGC), reaffirmed the commitment of the NCS to collaborate with Nigeria Liquefied Natural Gas, NLNG Limited, to boost the Nigerian economy. The assurance was given when a delegation from NLNG, led by its Managing Director, Philip Mshelbila, paid a courtesy visit to the Customs helmsman in Abuja.

Receiving the delegation, Adeniyi expressed his appreciation for the visit and emphasised the importance of the longstanding partnership between the Nigeria Customs and NLNG.

He said, “Your organisation’s contributions to our nation’s energy sector cannot be overemphasised. On behalf of all of us, I wish to let you know that we value the productive partnership between us – and we are committed to sustaining this collaboration to further our shared mandates of fostering national growth and development.”

The CGC, however, applauded NLNG’s proactive engagement and dedication to compliance, noting that “such collaboration is essential for the smooth operation of the nation’s trade and economic systems.”

“It is commendable that your organisation not only engages with the Nigeria Customs Service when issues arise but also takes the initiative to visit us out of courtesy. This gesture signifies the mutual respect and understanding that are the bedrock of our relationship,” Adeniyi explained.

Earlier in his address, Mr. Mshelbila appreciated the CGC and his team for the warm reception and reiterated NLNG’s commitment to extend its hands of friendship to NCS for Nigeria’s economic growth.

He said, “At NLNG, we recognise the Nigeria Customs Service’s vital role in facilitating trade and ensuring the smooth operation of our activities. Our relationship has been one of mutual benefit, and we are committed to continuing our work together to promote the economic well-being of Nigeria.”

Continuing, Mshelbila added, “We are grateful for the unwavering support we’ve received from your office and your team. This visit is a testament to our desire to maintain and deepen our collaboration, as we believe that our joint efforts contribute significantly to the nation’s development.”

As Nigeria’s economic challenges persist, collaborations between key agencies like the NCS and major stakeholders such as NLNG become even more critical. These partnerships are essential in promoting sustainable growth, human capital development and national progress.

The federal government must, however, take decisive actions to address the underlying issues plaguing the economy. Without such interventions, the economic outlook of Africa’s Giant will remain bleak for years to come.

*Mahmud, Deputy Editor of PRNigeria, can be reached via: [email protected].*