Business
INTERVIEW: We Recorded Revenue Increase After FG Lifted Ban on 43 Items – Nnadi
Dera Nnadi, Customs Area Controller of Tin Can Island Port Command responded to reporters’ questions shortly after unveiling the command’s target of N1.130 trillion for 2024
He talked about the service management drive to achieve non intrusive cargo examination where more containers will go through scanning than the ones being physically examined. According to him, this is easily achievable in an atmosphere of cargo integrity premised on compliance with import/export guidelines and sincere declaration by port users
Ismail Aniemu was there
Q: You just declared 2024 the year of stakeholders. What should we expect differently from your interactions with members of the port community
All the successes we made as a command were not done in isolation. They all made contributions to it. This year we want to improve in carrying everyone along
by introducing a watch system that will make sure that any importer, exporter or agent that is so compliant gets accelerated action in clearance of his cargo.
At national level, we already have the fast track, the CGC upon resumption has also launched the AEO programme authorized economic operators Programme all to reward compliance of traders who do it right.
What we want to do particularly in Tincan Island Port is to further entrench what we started in 2023 which are: extended work hours, 24 hours operation, weekend operations. As I declared in 2023, the Ports weekend should not be translated into ‘owanbe’ weekend.The port is 24 hours operation, 7 days a week.I do not see the reason why our ports stakeholders in Lagos should devote weekends to parties and weddings.We have to be coming to work during weekends.
In the past,we blame our stakeholders for every infractions in the system.I have told the officers that I will no longer be blaming just the stakeholders.For every declaration made by stakeholders, but released by an officer, and is intercepted through the supply chain, that officer will have to answer at enforcement.We will give a window to allow stakeholders and declaring agents to breathe
Q: Last year you told us that you generated N716 billion and this year they have given another target of N1.130 trillion.Is this revenue target not putting much emphasis on revenue collection than trade facilitation?
This has been a global question in Customs.Nigeria economy is an import dependent economy.Therfore, we cannot neglect issues of internally generated revenue.We must emphasize it .Like I have already declared, 2024 is the year of stakeholders.We will match revenue generation and collection side by side with service delivery
Let me point out one thing.The freight forwarder is not afraid to comply if you give them service delivery .A freight forwarder will rather be happy that he pays his duty and his container is delivered in 24 hours and 48 hours at maximum than for him to stay in the port for one week or two weeks paying demurrage.We have already mapped out strategies to make sure that no importer or freight forwarder spends longer time than necessary and accumulate undue demurrage.This is one of the strategies we will adopt.I don’t think it will be a big issue for them but let me ask if anybody has ever asked why Nigeria is import dependent? People tend to think that we don’t manufacture enough.We do manufacture a lot.The Nigerian population is so big.Over 200 million people.We consume what we manufacture and because we are not manufacturing enough, we have to import.Because we also manufacture, we have to import raw materials.People should not be scared when we mention issues of collecting revenue through import.Do not be surprised that this same country collects revenue from excise duties.There are other items that pay excise like alcoholic beverages and cigarettes.
People tend to think that when such huge amount is mentioned, It is going to be a function of not only cargo . It’s the volume of cargo that comes in that will be taxed.It is only going to be a function of ensuring that even the few that may come in will maximize collection from them through encouraging voluntary compliance by our traders.
Q:You talked about 24 hour service delivery as part of the strategies you have implored to ensure you get your target this year.How about the other strategic stakeholders like terminal operators and others? Are we going to be seeing this seamless synergy that will also ensure that we drive this weekend operation so that it is not just your officers you are talking to but that the other agents are part of this logistics chain?
Let me say that I am an incurable optimist.I recall that in 2008, we introduced scanning operation in the ports in Apapa ,when I was PRO. This same issue came up.How will people cope? Banks don’t work during the weekend.If we scan a container over the weekend, how do people collect revenue? I suggested then that money can be domiciled inside an account and covered by bond so that over the weekend, if you scan your container and there is need to pay more revenue , you can take your container and we will go to that account to collect duty .
Now , from your phone, you can pay customs duty over the weekend.You don’t need banks to open.You can have a wallet app with which you can pay Custom duty over the weekend including Sundays.We have engaged with our stakeholders and they are in tune with our obligations, expectations and what we are doing.
Nigerian Ports Authority have pledged to assist by providing security along the corridor.They are doing that already and Lagos State is doing that too.I held a meeting with some of the people to clear people who constitute obstacles to the movement of trucks from this road. They also pledged to provide light along the corridor.The people who manage our scanners have been working with us in the night.
TICT that provides containers to the scanner have been providing containers in the night.Other government agencies, particularly those that are involved in seaside operation and enforcement are already used to working in the night.The NDLEA and others are already working.What we are saying is that those freight forwarders who are not yet embracing it should join us.Some of them are embracing it.
Q:Currently, what is your stock of fleet of scanners available and as at 2023, what volume of Cargo were you scanning?
Just yesterday, the CGC met with the Minister of Finance , Minister of Transportation and Minister of Marine and Blue Economy.They discussed the issue.The CGC made a pledge to prioritize scanning operation. Acknowledging the pivotal role of non-intrusive cargo examination and actively decongesting the Port
The meeting entrusted the CGC with the mandate to champion and prioritize cargo scanning over traditional physical examination methods”.It is already in national discuss that scanning is a priority. If you ask me ,I will say that for now, we have only one scanner in Tincan Island Port but we also have plans to increase the scanners.I know that before the end of this year, more scanners will be introduced.
Last year, at Continental Hotel, Victoria Island, we conducted our Customs CG conference where the theme was anchored on ” Data Analytics and Geospatial Technology”. Based on that, permit me to read out the volume of containers we treated here on a whole.
We handled 131,686 TEUs. that were examined in 2023.Out of these114,935 were examined physically.Unfortunately, only 16,751 were scanned.For me, this is not a good record because globally, what should be obtained should have been the opposite.
More containers should have been scanned and not more physical examination.It is hoped that with this new enthusiasm between the CGC and the leadership of this Sector, led by the Minister of Marine and Blue Economy, the Managing Director of Nigeria Ports Authority, the terminal operators, we hope that we are going to make the best out of this initiative and get more scanners into the ports, get more containers scanned .
Scanning of containers should not serve as the ultimate.The ultimate eventually should be cargo integrity.Scanning of containers is not an end, it should still be a means to an end.The end should be enhanced cargo integrity.If a particular declaration has infractions.If we scan that container, and we see the infractions,we will still subject it to physical examination.
That even becomes worse because we are now conducting two examinations on that container.If we scan a container, and there is an infraction, we will still subject that container to physical examination in order to correct that infraction.I will advocate that our importers should embrace genuine declarations, improved cargo integrity such that when we scan those containers, they should go immediately.
However, the CGC in our last meeting also advocated something.They are planning that perhaps as those containers are being offloaded from the vessel, they will be scanned and the images forestalled. Those that are found without infractions during examination, will be allowed to go back and go through the scanning systems.Those found with infractions will be examined.That way , we will save time and cost.
Q:N1.130 trillion for me appears to be a tall order and it is good that it is coming at this time. Is there a reward system for your officers?
NCS has been rewarding officers.Some of us have been rewarded.I have received awards too.Some of us have also received commendation letters.Some officers were recently given special promotions during the last promotion excercise.One of such officers is an officer who was promoted from the rank of Superintendent of Customs to Assistant Comptroller of Customs as a reward for him collecting and recovering N16 billion for Federal Government of Nigeria through NCS.
There is already a reward system for us.There are some other officers whose names have been submitted.Very soon, we will hear about such rewards.An Officer of Tincan Island Port too was given such promotion from SC to Assistant Controller of Customs.During the last promotion exercise, nine officers of this command were promoted to Comptrollers and that is unprecedented.Tincan Island Port has remained a breeding ground for intellectuals.Besides promotion of those officers, the management through the new NCS Act signed into law in April 2023 has recommended financial reward for officers that excel in their job if they recover tremendous revenue. It is already entrenched in the law.It is not just about the CG doing it.It is now a law.
Q:Since the lifting of ban of forex on the 43 items, how far have those items increased revenue generation?
Sometimes, statistics don’t lie.I am one person that will always want to work with statistics and evidence.I am not a trouble maker and I am not giving anyone trouble.If I am making trouble, I will not declare 2024 as a year of stakeholders.I have always said that we couldn’t have collected this revenue alone but for the help of our stakeholders.
There are some people that in their attempt to maximize profit, may want to be non- compliant.My responsibility here is to make sure that I keep an antidote to prevent that. If it is interpreted as being troublesome, I apologise
The ban was lifted sometimes around June 2023.Reading from statistics, to see the impact of the ban lifting, ” In January 2022, total collection for Tincan was N45 billion.For the same period in 2023, it was N42 billion.In February 2022, collection for Tincan was N39 billion.In February 2023, it was N41 billion.In March 2022, collection for Tincan was N51 billion.In March 2023, it was N42 billion.In April, it was N40 billion .In 2023, it was N36, billion.In May 2022, it was N42 billion , in May 2023, it was N46 billion.In June 2022, it was N55 billion, in June 2023 it was N50 billion and the ban was lifted. In July 2022, we collected N48 billion, in July 2023 it was N72 billion.That shows the impact of that lift.In August 2022, N55 billion was collected, in August 2023 ,it was N84 billion.Two things combined, Adewale Adeniyi MFR was appointed CGC and that ban was lifted.The two has to be correlated.In September 2022, N51 billion was collected, in September 2023, N61 billion was collected.In October 2022, N49 billion was collected.In October 2023, N86 billion was collected.In November 2022, N48 billion was collected, in November 2023, N75 billion was collected.In December
2022,N46 billion was collected, in December 2023, N76 billion was collected”.A combination of the officers here, a combination of the appointment of new management of Customs and the lifting of that ban translated into a tremendous increase in our revenue collected.
