- It’s a ‘loss-loss’ situation for the customs as seized goods rot away
Many an observer would consider it in-perspicacious if not a fallacy when it is said that the current government suffers liquidity challenges. The first reason for this disavowal of government’s standpoint is that officials have not displayed the thrift and frugality required in a depressed economy. The age-old wastefulness which often characterises government finances has not changed. But more remarkable is that the Federal Government does not seem to be seriously exploring all possible avenues for earning more revenues. One of such involves seized and confiscated goods and properties.
For instance, it has been discovered that numerous government enforcement, regulatory and even security agencies have not been able to explore the huge revenue potentials inherent in seized and confiscated items. Most guilty among these agencies are the Nigeria Customs Service (NCS); the Nigeria Police Force (NPF); the Economic and Financial Crimes Commission (EFCC); Independent Corrupt Practices Commission (ICPC); Nigeria Drug Law Enforcement Agency (NDLEA); to mention a few.
It is indeed common knowledge that in the premises of most ministries, departments and agencies (MDAs) of government – including states and local governments – disused but serviceable government properties are found in good number often going to waste. Most notably are the Nigerian Railways Corporation, Nigeria Ports Authority and even the Central Bank of Nigeria – all reportedly have warehouses and premises brimming with ‘condemned’ but serviceable items.
However, the object of focus here today is the NCS. As reported recently, upon assumption of office about one and half years ago, Comptroller-General Hameed Ali had banned the auction of all goods confiscated and legally forfeited to the Federal Government.
Of course, a good portion of the customs duties is the seizure of contraband goods and such goods that are abandoned as a result of high tariffs; or those that go into demurrage for one reason or the other. Ali meant well as he had wanted the customs auction system revamped to rid it of the rot that it had been infested with.
But 18 months after, no auction has happened and it seems that more problems may have been created by the new helmsman than he tried to solve. Customs’ warehouses, formations and indeed the establishment is besieged, so to speak, by overwhelming numbers of seized vehicles, containers, household items, consumables and clothing materials. Heaps of contraband goods, many of which have already been seized, condemned, gazetted and forfeited to the government as may have been ruled by various courts lay waste.
It is reported that from Apapa to Tin Can, Seme, Idi-Iroko and indeed all customs formations are brimming with goods awaiting auction. In fact, it took a presidential intervention last year for thousands of bags of rice to have been evacuated from customs warehouses to the camps of Internally Displaced Persons in the northeast of Nigeria.
We do not want to believe that it requires so much time for the new NCS boss to reform the customs auction system and convert it to an electronic process that is less susceptible to compromise. While it is desirable to change the old, much abused method, time is also of the essence.
Most of the goods are said to be rotting away and losing much value thereby defeating the laudable purpose of a system reform. It becomes double jeopardy because so much man-hours and resources had gone into seizing and processing of those items and making them ready for auction.
Not to mention the fact of the health hazard inherent in the pile of goods as a result of decay and the breeding of such pests as bugs, rodents and reptiles around NCS work areas. And of course, the billions of naira in revenues that government is losing daily.
The customs chief should set the auctioneers’ gavel to work, pronto!
