By Ben Oramalugo, Ph.D
Introduction
This chapter seeks to examine the role of the Nigeria Customs in national security. The fact that the Nigeria Customs Service contributes immensely to the country’s development through the discharge of its statutory responsibilities is not in doubt. Customs is an ancient fiscal mechanism and among the oldest methods of collecting revenue. Its origins are of great antiquity, dating back to early periods and playing a prominent role in notable ancient civilisations such as the Sumerian civilisation in Mesopotamia, Egyptian civilisation around the Mediterranean, Greek and Roman societies in Europe, Indian civilisation in Southeast Asia, and Chinese civilisation in the Far East. There are two essential preconditions for the existence of customs in ancient times: the existence of commerce and public authority.
Therefore, while customs duty is a type of tax levied on goods transported from one place to another, generally in connection with commercial transactions, its relevance and application depended on commerce and public authority. Consequently, there can be no customs without commerce and public authority.
In Nigeria, the role of customs has traditionally been that of a gatekeeper, with customs authorities acting as a barrier through which international trade must pass to safeguard the nation’s interests. Customs has been responsible for enforcing various government policies such as revenue collection, trade compliance and facilitation, interdiction of prohibited substances, protection of cultural heritage, and enforcement of intellectual property laws.
Customs is unique among government organisations in that it is neither solely a domestic nor an international agency but an entity positioned at a country’s international borders, overseeing both inward and outward flows. Customs supports all government agencies with border concerns, including those related to health, safety, agriculture, and the environment, among others. This is achieved through the implementation of a wide range of service-level agreements, with customs bearing regulatory responsibilities at both import and export points.
Customs administration has undergone significant change since the early 1990s, shifting from mainly managing trade transactions for revenue collection to emphasising trade facilitation, societal protection, and securing the international trade supply chain. This progression can be linked to globalisation, which introduced the worldwide marketplace and technological advances that have transformed trade and transportation. For example, the increasing use of wide-bodied aircraft, shipping containers, e-commerce, and the growing complexity of international trade agreements have affected how regulatory authorities carry out their duties. Customs administrations worldwide have faced a substantial rise in workload across all operational areas. These developments collectively indicate a growth in trade volume, leading to additional pressure on Customs operations, particularly amid limited infrastructure and security threats.
It is no gainsaying that the role of customs administration since the beginning of the 21st century is increasingly centred on ensuring the security of the trade supply chain. The terrorist attack on the United States on September 11th, 2001, heightened security concerns related to the supply chain. The security risks associated with the international supply chain have prompted individual states, including Nigeria, to implement measures aimed at preventing the proliferation of weapons of mass destruction by terrorists. Customs administrations have been actively involved in this effort by developing and enforcing such security measures. Against this background, this chapter analyses the role of the Nigeria Customs Service in national security in the 21st century.
Historicising Customs Administration in Nigeria
Historically, customs as a department of state finance was established before the annexation of Lagos in 1861. However, it was not centrally organised or controlled. During this period, the British and other traders, namely the French, Germans, Portuguese, and Africans, paid customs duties to the chief in whose territory they operated. King Akintoye and Kosoko organised their men on the wharves to collect duties of 3 per cent on imports and 2 per cent on exports. The customs system in Lagos was similar to that in Oil Rivers, where Comey was paid. The means of payment included puncheons of oil, trade articles, and accepted currencies of the time, namely Manila and Cowries. Likewise, the Yoruba states in the 19th century also operated a toll system, whereby traders paid tolls when engaging in trade that crossed boundaries.
The annexation of Lagos in 1861 by the British led to the establishment of the first customs department, which was managed centrally by the colonial government. The Customs Department was headed by J.H Glover, who was appointed Harbour Master and Collector of Customs in 1861. However, the formalisation of the Customs Department occurred in 1891 after the transfer of the Royal Niger Company’s financial functions—especially the collection of dues and taxes at the ports and hinterland—to the appointment of T.A Wall as the first Director-General of Nigeria Customs. It was not until 1964 that Nigeria appointed its first indigenous head of the Nigeria Customs Service, Ayodele Diyan.
In the post-independence period, Customs administration contributed to the sustenance of the newly independent Nigeria. The customs department assisted in the maximization of the benefits of the export led development strategy in the early 1960s, through ensuring compliance with the economic policies. It played a vital role in raising funds needed for the implementation of the First National Development Plan 1962 – 1968. However, the achievements recorded by the customs department between 1960 and 1966 were seriously affected by the Nigerian Civil War and thereafter the oil boom of the 1970s.
Since the 1960s, the Nigeria Customs Service has played a significant role in the development of the country through the discharge of its statutory regulatory responsibilities. With particular reference to its financial contribution, the Nigeria Customs Service collected N934,114,131 into all government accounts between 1973 and 1979; N31.5 billion between 1985 and 1991, N1.14 trillion between 2009 and 2011 and N3.5 trillion between 2012 and 2015. In 2023, the NCS collected N3, 21 trillion in revenue and N6.1 trillion in revenue for the year 2024. In 2025, N7.28tn was generated.This feat was achieved through several reforms geared towards the modernization of the Service.
Over the past three decades, the customs administration has undergone several reforms. Two major periods are evident in customs administration reforms and modernisation in Nigeria during the postcolonial era. The first period was from 1975 to 1998, characterised mainly by structural changes in customs administration. The second period started from 1999 to 2024, which was marked by both structural and operational changes. This is without prejudice to the earlier reforms that took place before 1975. Several changes were indeed introduced during the colonial period and the immediate post-independence era. However, it was not until 1975 that a major structural reform was introduced.
The 1975-1979 reform was structural, merging the technical and preventive units for improved performance. The 1985-1989 reforms brought about the transfer of Nigeria Customs Service from the Federal Ministry of Finance to the Federal Ministry of Internal Affairs
The 1989-1994 reforms led to the return of the Nigeria Customs Service to the Federal Ministry of Finance with the creation of the Nigeria Customs Service Board in 1992.1995-1999 reform saw the appointment of a sole administrator. It brought about the replacement of the Long Room with the Customs Processing Centre. It midwived the introduction of the Automated System for Customs Data (ASYCUDA), which was then being implemented on behalf of UNCTAD by ECOWAS. The professional import duty administrators were engaged to complement Customs in the task of revenue collection. The reforms and modernisation began during the 1999-2004 reform with the full implementation of ASYCUDA. A career customs officer, A. Mustapha, was appointed Comptroller General of Customs.
The 2005 – 2024 reforms started with the introduction of the Destination Inspection Regime. PAAR (Pre-Arrival Assessment Report) was introduced to replace RAR (Risk Assessment Report); the introduction of Vehicle Identification Number (VIN) valuation policy for imported automobiles, the establishment of export terminals and the introduction of dry ports. In addition, the NCS upgraded its trade system to NICIS II (Nigeria Integrated Customs Information System). The old system, based on ASYCUDA, was not deemed robust enough in terms of availability and security features. NICIS II is a computerised system designed to harmonise and standardise customs procedures in the country as well as enhance the user experience, leading to better management and improved productivity in the Nigeria Customs Service. Another reform is the Authorised Economic Operators Scheme, launched in 2024. The B-Odogwu, a digital trade facilitation and integration platform, was introduced in 2025. The platform is an indigenous, unified customs management system designed to streamline and automate trade processes, enhancing efficiency and revenue collection. Recently introduced Single Window platform is a game changer intellectually designed to enhance trade of international standard.Suffice to mention that the Comptroller General of Customs Adewale Adeniyi was recently appointed the Chairman of World Customs Organisation Council. He also won several awards in 2024 and 2025. These are clear indications that the reform initiatives of the NCS are received by Nigerians and the international community.
Nigeria Customs and National Security
To ensure that the country’s crucial national interests are achieved, the NCS is engaged in two aspects of security: economic security and social security. The economic security of the NCS involves mainly the collection of revenue for the administration and welfare of the country, and the implementation and enforcement of government fiscal policies, which are part of the national trade policy. The social security role of the NCS across borders includes preventing the trade in arms and ammunition, regulating products that can harm Nigerians’ health, and other related activities.
Economic Security
Revenue collection is the major economic security function of the customs administration in Nigeria. The source of such revenue includes: tariffs on imports and exports, excise duties and the collection of domestic taxes such as Value Added Tax (VAT). The revenue collection function remains the primary focus of customs administration because it supports a large part of the national budget that contributes to vital government services, including education, healthcare, infrastructural development, and law enforcement, among others. The Nigeria Customs Service collected N934,114,131 into all government accounts between 1973 and 1979; N31.5 billion between 1985 and 1991, N1.14 trillion between 2009 and 2011 and N3.5 trillion between 2012 and 2015. In 2023, the NCS collected N3, 21 trillion in revenue and N6.1 trillion in revenue for the year 2024. In 2025, N7.28tn was collected. The attainment of this feat is attributable to several strategic initiatives. The customs department prioritised efforts in blocking revenue leakages. The success story of the Revenue Review Performance Recovery Team set up in 2023 is worth mentioning. For instance, N15 billion was recovered by the Revenue Review Performance Recovery exercise. Similarly, N2.3 billion was recovered from the 90-day window for the regularisation of the documents of uncustomed vehicles, and N1.5 billion was recovered from the decongestion of 1,705 containers and 981 vehicles from the port.
Apart from revenue collection, customs administration is also responsible for the implementation and enforcement of government fiscal policies, which are part of the national trade policy. These include: administering differential tariffs, quota restrictions, rules of origin, anti-dumping measures, valuation and trade embargoes. It is instructive to note that customs administrations carry out this role with minimal disruption to international trade.
In the past, customs administration had been criticised for paying more attention to revenue collection than trade facilitation as they strive to meet their annual revenue targets. However, the economic globalisation since the 1990s and the attendant increase in world trade have brought radical changes to the role of customs administration. Trade liberalisation created opportunities for illicit as well as legal trade. Besides, the World Trade Organisation also created complex trade rules. At the regional level, the proliferation of regional trade agreements also requires customs administration to manage complicated preferential rules of origin. Against this backdrop of increasing workload, customs administration has made progressive efforts to facilitate trade while collecting the maximum collectable revenue for the government. This is imperative for Nigeria to thrive in a highly globalised and competitive world.
Trade facilitation involves simplifying and harmonising international trade procedures. In essence, it is a comprehensive, integrated approach aimed at reducing the complexity and costs associated with trade transactions. Its goal is to ensure all trade activities occur efficiently, transparently, and predictably, adhering to internationally recognised norms, standards, and best practices. Trade procedures encompass the activities, practices, and formalities involved in collecting, presenting, communicating, and processing data and information necessary for the movement of goods in international trade. The objective is to make cross- border trade faster, simpler, and cheaper while maintaining safety. This highlights that the physical movement of goods is not the only critical aspect of the supply chain; equally vital is the flow of information between relevant government agencies and the private sector.
The World Customs Organisation (WCO) has advised member countries to dismantle tariff barriers, remove bands, simplify clearance procedures, promote transparency with traders, make information accessible to all, build capacity, and ensure staff are knowledgeable. African countries, including Nigeria, have recognised the importance of trade facilitation as reflected by the numerous agreements signed at bilateral, sub-regional and regional levels as well as efforts made at the country level. most of these initiatives have so far yielded very limited benefits. The poor results are attributed to several factors, including non-compliance with agreements, poor programme implementation, inadequate coordination among and between countries, lack of coordination among relevant agencies within countries, inadequate skilled manpower, and most importantly, the absence of a multi-sectoral approach to trade facilitation.
African countries including Nigeria have recognised the importance of trade facilitation as reflected by the numerous agreements signed at bilateral, sub-regional and regional levels as well as efforts made at country level, most of these initiatives have so far yielded very limited benefits. The poor results are attributed to several factors such as non-compliance to the agreements, poor programme implementation, lack of coordination among and between countries, lack of coordination among relevant agencies within countries, inadequate skilled manpower and most importantly, lack of a multi-sectoral approach to trade facilitation.
One of the major challenges of trade facilitation in Africa including Nigeria is cumbersome customs procedure. The challenge of customs procedures to trade facilitation was aptly captured by the French classical liberal economist Frederic Bastiat when he wrote that:
Between Paris and Brussels obstacles of many kinds exist. First of all, there is distance, which entails loss of time, and we must either submit to this ourselves or pay another to submit to it. Then come rivers, marshes, accidents, bad roads, which are so many difficulties to be surmounted. We succeed in building bridges, in forming roads, and making them smoother by pavements, iron rails, etc.
But all this is costly, and the commodity must be made to bear the cost. Then there are robbers who infest the roads, and a body of police must be kept up, etc. Now, among these obstacles, there is one which we have ourselves set up, and at no little cost, too, between Brussels and Paris. There are men who lie in ambuscade along the frontier, armed to the teeth, and whose business it is to throw difficulties in the way of transporting merchandise from the one country to the other. They are called Customhouse officers, and they act in precisely the same way as ruts and bad roads.
It has been argued that trade facilitation in Africa would benefit not only importers and consumers who have to contend with higher prices induced by red tape in import administration but exporters too. It would enable firms to increase their continental share of trade in goods and services as a consequence of lower transactions costs. It would reduce compliance costs, service charges, business opportunity costs, and costs associated with uncertainty and corruption. If implemented correctly, trade facilitation can also benefit governments. It can bring about more efficient control methods, better resource allocation, higher revenues, improved trade compliance, faster economic development, and a climate conducive to Foreign Direct Investment (FDI).
Customs administration has adopted several initiatives towards facilitating trade such as the Single Window project, the Pre-Arrival Assessment report, IT-based services and computerization of its operations. In 2013, the customs department developed the Nigeria Trade Hub (NTH) and the Nigerian Import and Export Process Manual (NIEPM). This was an interactive manual developed with the cooperation of other governments’ regulatory agencies and some private sector players. It was designed to assist the importer or exporter, in obtaining correct and timely information. In other words, it provided an invaluable guide and reliable reference tools to the global business community about the government agencies required to liaise with in order to obtain the necessary import permits and certificates needed to import or exports goods into or out of Nigeria. The portal had several features such as classification tool, currency converter, tax simulator, a web link to other government agencies, constant accessibility, availability on mobile applications and intuitive features.
Based on product and transaction type selected, the portal would provide details including regulatory stakeholders of that particular product and transaction type, documents required, the cost of administering these documents, duties, and tax payable, the number of processing days and any controls/restrictions that might apply. The NTH was linked to the Nigeria National Single Window to ensure that once the decisions are made to proceed with the import or export transaction, all selected details captured during the search are automatically transferred to the Nigeria Single Window thereby saving the time and cost of re-keying all information.
The benefits of a Single Window include; increased level of service efficiency, transparent and predictable processes, elimination of bureaucratic bottlenecks and ultimately increased revenue and economic growth. However, Kola Jamodu the former Chairman of Manufacturers’ Association of Nigeria has warned the customs department of complacency. He argued that for the scheme to work as envisioned, several issues must be taken in to consideration; first the customs department must be the lead agency for the implementation of the Single Window Road map. Also, necessary back up and safety nets should be put in place to prevent system collapse during the implementation process; creation of a transparent workflow to ensure that manufacturers and port users enjoy the true value of this transformation system. Finally, establishment of a functional regulatory body to oversee the activities of shipping agencies and terminal operators is imperative.
The NCS has also made considerable progress in improving trade facilitation over the past year, including port decongestion and reopening previously inaccessible roads. Another significant initiative is the establishment of a dedicated export terminal, which has delivered notable benefits by streamlining exports through the Lilypond command. Consequently, the number of Single Goods Declarations (SGDs) processed at this terminal increased from 317 to 7, 7464, representing 19. 19.49% of the total export transactions recorded in 2023. In February 2024, the NCS launched an extensive Time Release Study to identify bottlenecks in clearance processes. Additionally, the agency introduced the Advanced Ruling System, which holds customs officers accountable for their stance on pre- importation requests. This development marks a notable step forward, aligning NCS operations with global best practices in line with the WTO Trade Facilitation Agreement. The recent ranking by the Presidential Enabling Business Environment Council attests to NCS’ s commitment to trade facilitation. In the latest assessment, NCS advanced to the 6th position out of 52 MDAs for efficiency and transparency.
Social security
The social security functions of the customs department include combating smuggling and, in conjunction with other agencies, ensuring standards and preventing illegal trade in arms and ammunition. Customs serves all agencies of government with border interest, such as health, safety, agriculture, environment, among others. This is achieved through the implementation of a diverse range of service-level agreements with customs having regulatory responsibility at the point of importation or exportation. For instance, it works alongside the Standard Organisation of Nigeria (SON) and the Nigerian Administration for Food and Drug Administration and Control (NAFDAC) to ensure that imported goods are legal and safe for Nigerian businesses and consumers. It also collaborates with the National Drugs Law Enforcement Agency (NDLEA) to combat the scourge of illegal narcotics. The NCS also help to enforce intellectual property rights by preventing the import and sale of counterfeit goods. Besides, it plays a role in preventing money laundering activities related to illegal trade and other crimes.
Intelligence Gathering
The customs department also provides information or intelligence gathering for appropriate government agencies for the overall security of the country. The NCS works in partnership with the State Security Service (SSS), Nigeria Police Force (NPF) and military intelligence, among others, to fight the flow of illegal weapons, capable of fueling criminality and terrorism in the country. For instance, it was reported that on more than 17 different occasions between 2010 and 2015, the Nigeria Customs Service seized at various ports arms and ammunition imported into the country from Europe and America. It must be pointed out that the arrest of the former Liberian President Charles Taylor was done by the officers and men of the Borno State Command at Gamboru-Ngala, a border town in Borno State, while he was attempting to cross the border to cross over to the Cameroun Republic.
The agency’s tactical operations have led to record-breaking seizures. In the area of seizures, the NCS has performed well under Adeniyi. Similarly, NCS recorded 3555 seizures in 2024 with 100.92 per cent increase in the Duty Value, DPV of seizures from 17.56 billion in 2023 to 35.29 billion in 2024. In 2024, the Nigeria Customs Service (NCS) seized a significant number of arms and ammunition, including 844 rifles and 112,500 rounds of live ammunition, intercepted at Onne, Port Harcourt. They also handed over a total of 3,897 arms and ammunition to the National Centre for the Control of Small Arms and Light Weapons (NCCSALW). These seizures occurred in conjunction with heightened security challenges and are seen as part of efforts to combat illegal arms proliferation and smuggling networks.
Anti-smuggling Activities
The anti-smuggling activities have been pursued vigorously. The agency’s tactical operations have led to record-breaking seizures. In the area of seizures, the NCS has performed well under Adeniyi. NCS recorded 3555 seizures in 2024 with a 100.92 per cent increase in the Duty Value (DPV of seizures from 17.56 billion in 2023 to 35.29 billion in 2024. In 2024, the Nigeria Customs Service (NCS) seized a significant number of arms and ammunition, including 844 rifles and 112,500 rounds of live ammunition intercepted at Onne, Port Harcourt. They also handed over a total of 3,897 arms and ammunition to the National Centre for the Control of Small Arms and Light Weapons (NCCSALW). In 2025, 2,500 seizures of prohibited goods were effected nationwide with total value exceeding 59 billion Naira, key interceptions included counterfeit pharmaceuticals, arms and ammunitions, narcotics and foreign vehicles, aimed at safeguarding public health and national security. These seizures occurred in conjunction with heightened security challenges and are seen as part of efforts to combat illegal arms proliferation and smuggling networks. The Nigeria Customs Service (NCS) has introduced an oil task force, part of the larger “Operation Whirlwind,” to combat petroleum products smuggling and related crimes. This task force, supported by the Office of the National Security Adviser and the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aims to stop the illegal exportation of fuel and protect the national economy.
The NCS has set in motion plans to jettison the crude method of anti-smuggling tactics and rely more on the deployment of technology to maximise performance and minimise casualties. As part of his strategies to curb smuggling in the country. The Nigeria Customs organises meetings with major government stakeholders and traditional rulers in some border towns. Unlike his predecessors, the Comptroller General Bashir Adeniyi has added a human face to the fight against smuggling in the country. A clear indication is his proposed plan to establish a skill acquisition centre in the border towns with Seme as a takeoff point. This is meant to provide sources of livelihood for both the young adults and elderly people instead of engaging in smuggling or other illegal business.
Challenges faced by Nigeria Customs Service Security Operations
The above examination of the role of the NCS in national security in Nigeria illustrate that contrary to established opinions, significant strides have been made since the beginning of the 21st century. However, they could be considered limited when compared with set objectives and schedules. Experience with the NCS security operations in Nigeria is bedeviled by various challenges.
The vastness of Nigeria’s borders significantly impacts the NCS, creating challenges and necessitating strategic approaches to border security and trade facilitation. The sheer length of Nigeria’s borders, coupled with the presence of illegal routes, makes effective control a complex task. Nigeria shares a long border with several neighbouring countries including Benin, Niger, Chad and Cameroun. For instance, Nigeria shares 773 kilometres boundary with Benin; 1690 kilometres with of Cameroun; 1497 kilometre of Niger; 85 kilometres with Chad and with the Republic of Guinea at the Gulf of Guinea. totaling over 4,047km, making comprehensive surveillance and control extremely challenging for the NCS.
The NCS also faces a shortage of manpower and essential working equipment like scanning machines and patrol vehicles, marine boats and communication devices. The total workforce of 18000 of the NCS is inadequate to ensure the effective policing of Nigeria vast borders. The lack of human and material resources hinders their ability to effectively patrol and monitor borders. Besides, the diverse and often remote terrain along the borders presents additional difficulties for the NCS in carrying out their duties efficaciously.
The vastness and porous nature of the borders facilitate smuggling activities, leading to revenue loss for the government and potentially harming local industries. The porous borders also contribute to the spread of transnational crimes like drug trafficking and the proliferation of illegal weapons. Again, the lack of clear border demarcation between Nigeria and some neighbouring countries further complicates border management and security efforts.
Besides, the effectiveness of the NCS is also stymied by the increasing wave of insurgencies. For instance, Boko Haram activities, particularly along Nigeria’s borders, have heightened security risk. It has created a challenging environment for the NCS impacting its ability to effectively carry out its mandate. The activities of the terrorist groups have made it extremely difficult for customs officials to operate in affected areas. This has led to reduced patrols, surveillance and increased vulnerability to attacks thereby impacting the NCS ability to control the
flow of goods and people. The insecurity caused by Boko Haram has disrupted trade routes, affecting both legitimate businesses and the NCS’s ability to collect revenue.
The NCS security operations is further constrained by inter-agency rivalry. Inter-agency rivalry within Nigeria’s security and enforcement agencies including the Nigeria Customs Service significantly hinders operational effectiveness particularly at border posts and ports. This rivalry is characterized by a lack of collaboration and intelligence sharing undermines efforts to combat smuggling, facilitate legitimate trade and maintain national security.
Conclusion
So far, we have shown that the NCS has contributed to national security in the country. While the military, police force, the intelligence services and some para military services are involved in the general security, the economic and social security of the citizens is virtually left in the hands of the NCS. However, there is the need to work towards addressing the issue of inter-agency rivalry at the borders through improved collaboration and intelligence sharing as well as clear delineation of responsibilities. This is crucial for enhancing national security and promoting economic development. In addition, the challenge of insurgency requires a comprehensive approach that includes the root causes of the insurgency and promoting economic development in affected areas. The current repositioning of the NCS through the introduction of innovative technology and sound intelligence platforms to face the challenges posed by the vastness and porosity of Nigeria’s and transnational security is no longer an option but an imperative for the NCS to meet its national security interest.
Written By
Ben Oramalugo PhD ( Lagos), Cert Harvard, FCPA, FIMC, FCIA, FNIM
ACG Customs ( Rtd)
