In recent times the debate on the true function of the Nigeria Customs Service (NCS) has come to the front burner but the federal government seems so satisfied as the Customs generates several hundreds of billions annually whilst the Service also parades itself as a trade facilitator.
With the current economic recession Nigeria is facing, pundits and financial experts have stressed the importance of diversifying the economy and encouraging exports, but how much does Nigeria do to facilitate export? What is the Customs doing since it agrees it has a mandate to facilitate trade? What does AGOA mean and how does it aid export? How has the Customs Service aided or marred this process?
Other nations around the world provide assistance to small and medium enterprises engaged in exports as a way of encouraging export while in Nigeria the scenario is different as import seems to be celebrated since there are no incentives for exports, the Customs is worsening the situation as its revenue collecting drive is seriously impeding export.
At a recent export event organized by the Nigerian-American Chamber of Commerce (NACC) in collaboration with Fidelity Bank Plc, one of the participants, Funke Opeke revealed how she had been deprived severally of getting the requisite stamp from Customs to facilitate her exports under the African Growth and Opportunity Act (AGOA).
According to Funke, she has not been having issues exporting until she decided to use the AGOA which is a platform created to facilitate export to America.
African Growth and Opportunity Act (AGOA) is a United States Trade Act, enacted on 18 May 2000 as Public Law 106 of the 200th Congress. AGOA has since been renewed to 2025. The legislation significantly enhances market access to the US for qualifying Sub-Saharan African (SSA) countries.Speaking on the issue at the event, the South-West Regional Co-ordinator, Nigerian Export Promotion Council (NEPC) Mr. Babatunde Faleke said that NEPC has been in touch with the Customs to discuss on the AGOA.
“I have been calling the concerned Customs officer to discuss with them on the AGOA. The question is- who is in-charge because there is a blockage. Why isn’t the relevant Customs unit in Lagos? Why don’t the Customs recognize the AGOA?” Babatunde queried.
Meanwhile, the Director General of Multimix Academy, Dr. Obiora Madu stated that more enlightenment and sensitization would have to be done about AGOA for the Customs and other stakeholders to fully understand and embrace it.
“If we want to succeed with the AGOA, information needs to be easily available. If this programme didn’t hold and the panelists weren’t here, there ought to be somewhere to get information about AGOA.“NACC and NEPC should help develop relevant information about AGOA and there should be specific places where you can go to get this information because people don’t have to get to the port before they know about AGOA”, Dr. Madu said.
He also lamented that exporters were always in a hurry to complete the transaction even as he stressed that exporting was a process and not a transaction. He advised exporters to ensure that the recipients of their services were satisfied.
According to Dr. Obiora, the Customs would have to be enlightened on AGOA and other issues that facilitate trade so that they could efficiently play their strategic role as trade facilitator rather than remaining a revenue collector.
Meanwhile, AGOA has been in existence for over a decade and several pertinent questions have to be asked; How can the Nigeria Customs Service (NCS) not be involved in an important export initiative? How else do the Customs intend to facilitate trade if it doesn’t recognize a programme created to support exporters? Have NEPC and other export promotion outlets not done enough publicity on AGOA?
Earlier this year, during the maritime summit organized by the Nigerian Shippers’ Council (NSC), the Acting Comptroller-General of Customs (ACG) Charles Edike said the Nigeria Customs Service was ready to provide venues for sensitizing Nigerian youth on the enormous opportunities for non-oil export.
The ACG had suggested that since there were so many people unemployed after schooling, the organizers of the maritime summit should collaborate with the Nigerian Export Promotion Council (NEPC) to train these people on the potentials for export free of charge.
“We have so many youths that are unemployed after schooling. The organizers of this seminar could select youths by any criteria from all state to train them on the potentials for export free of charge and let them know that there is so much they can do.
“The Nigerian Export Promotion Council (NEPC), Nigerian Shippers’ Council (NSC) and other government agencies should gather Nigerian youths and train them so that when you ask them to go work in Shell, Mobil and other big companies they will refuse because they will be more fulfilled with themselves.” ACG Edike posited.
With such astute submission coming from a top Customs boss, it is appalling that the Nigeria Customs Service isn’t aware of AGOA. Could the negligence be because the system doesn’t bring in revenue for the Service?
MMS Plus findings also revealed that the Nigeria Customs Service officials were present at the recent AGOA forum organized in May this year by the Nigerian-American Chamber of Commerce (NACC). So the assertion that the Service isn’t adequately informed about AGOA doesn’t hold water.
The Nigerian government cannot be making genuine efforts to diversify the nation’s economy by promoting exports and certain government agencies display lackadaisical attitude that end up jeopardizing good policies and initiatives.
AGOA is a legislation that significantly enhances market access to the US for qualifying Sub-Saharan African (SSA) countries. Qualification for AGOA preferences is based on a set of conditions contained in the AGOA legislation. In order to qualify and remain eligible for AGOA, each country must be working to improve its rule of law, human rights, and respect for core labour standards.
AGOA builds on existing US trade programs by expanding the (duty-free) benefits previously available only under the country’s Generalised System of Preferences (GSP) program. Duty-free access to the U.S. market under the combined AGOA/GSP program stands at approximately 7,000 product tariff lines, including the roughly 1,800 tariff lines that were added (to the GSP pool) by the AGOA legislation.
After completing its initial 15 year period of validity, the AGOA legislation was extended on 29 June 2015 by a further 10 years, to 2025.
Nigeria should be taking advantage of such a platform and not ridiculing it.
By Kenneth Jukpor
