The Nigerian Customs Service (NCS) is a vital institution responsible for regulating imports, generating revenue, and facilitating trade. However, systemic corruption, arbitrary seizures, and intentional delays in clearing goods have plagued the agency for years. These practices have cost importers billions of naira while depriving the government of legitimate revenue.
A particularly contentious issue is the manipulation of the customs auction process. Seized goods are often undervalued and allocated at suspiciously low prices, frequently benefiting a select few rather than the broader economy despite efforts by industry stakeholders, including the Nigeria Association of Auctioneers (NAA), to challenge these injustices, little has changed.
The issue of customs auction malpractices gained national attention during the 5th National Assembly under Senate President Bukola Saraki when the Nigeria Association of Auctioneer (NAA) presented a petition to the Senate Committee on Customs, chaired by Senator Hope Uzodinma, calling for a repeal of laws that allowed the Nigeria Custom Service (NCS) to manipulate auctions. The core grievances included:
The undervaluation of seized goods, unregulated nature of auctions and the exclusion of licensed auctioneers from the process.
Despite these efforts, no legislative reforms were enacted, allowing the customs service to continue operating in an opaque and unaccountable manner.
The worsening crisis in 2024 and fast forward to today, the situation has only deteriorated. Importers continue to suffer under a corrupt system that thrives on:
1. The deliberate delays in clearing of goods of importers who have fully paid their duties and often find their containers inexplicably held up at the ports. Many insiders suggest these delays are intentional, designed to coerce importers into paying incentives . If goods remain uncleared for too long, they are eventually seized and auctioned off at unfairly low prices.
2.When the customs officials seize goods, they frequently assign them values far below their actual market worth—sometimes as low as 10% of their real value. These goods are then sold to select individuals at cut-rate prices, resulting in massive revenue losses for the government and financial ruin for the affected importers.
3. The delays imposed by customs lead to significant and exorbitant demurrage fees, often exceeding the value of the goods themselves. Many importers are forced to abandon their cargo, which is then seized and auctioned under questionable circumstances.
A Case In Point: The Ordeal Of Mr Monday Osazuwa
Consider the case of Mr Monday Osazuwa, an importer who paid over ₦4 million through a customs agent for customs duties & related taxes for a container holding four vehicles and household items in 2014 and despite completing all necessary payments, customs officials delayed the release of his container, allowing demurrage fees to pile up eventually, the customs service seized his goods and undervalued them at just ₦2 million, a mere fraction of their actual worth and dispose of the container in 2022.
This case is not unique, every day Nigerian importers face similar injustices, highlighting the urgent need for reform.
To put an end to these corrupt practices, the following actions must be taken:
1. The National Assembly must revisit the NAA’s petition and amend the Customs Act to ensure auctions are conducted transparently and only by licensed auctioneers and to also mandate fair valuation of seized goods and Government must impose strict penalties on customs officers engaged in fraudulent activities.
2. Full Automation of Customs Operations must be adopted to reduce human interference and corruption, the customs service must fully digitize its operations. The e-Customs project should be prioritized to enable real-time tracking of goods and payments.
3. A special oversight committee, comprising representatives from the Ministry of Finance, the National Assembly, and private-sector stakeholders, should be established to monitor customs auctions and prevent fraudulent practices.
4. The importers who suffer financial losses due to wrongful seizures or delays should be eligible for compensation through a dedicated claims system.
Conclusion: The Time To Act Is Now.
The Nigerian Customs Service’s unchecked powers have caused immense damage to businesses and the national economy and Importers like Mr. Osazuwa continue to suffer from corrupt practices that favour a few privileged individuals at the expense of legitimate traders and government revenue.
If Nigeria is serious about improving its ease of doing business and boosting economic growth, immediate reforms are non-negotiable. The government must act swiftly to overhaul customs regulations to ensure transparency in auctions, and hold corrupt officials accountable.
The Cost Of Inaction Is Too High And The Time For Change Is Now.
Engr Abhulimen is the Former General Secretary, Nigeria Association of Auctioneers and the CEO of Auction Plus Magazine.
