NIGERIA CUSTOMS SERVICE

REFORMS AND MODERNIZATION IN THE

NIGERIA CUSTOMS SERVICE
A Paper presented by
ACG Julius Nwagwu
17Th February, 2011

Reforms and Modernization in

Nigeria Customs Service

Introduction.
Establishment of the Customs
Service.
Processes and Procedures
(ASYCUDA).
Infrastructures.
Capacity Building Training, Welfare,
Recruitment, etc.

Reforms and Modernization in

Nigeria Customs Service

Equipment and Tools.

Benefits Derived.
Challenges.
Customs of the 21st Century Way
Forward.

Reforms and Modernization in

Nigeria Customs Service

Introduction
We shall take a historical perspective
of the reforms and modernization in
NCS so as to appreciate the
achievements recorded so far.
The paper shall however highlight
early reforms within the NCS.
It shall elaborate on the reforms of
the present Customs Service so as to
chart the course for Customs of

Reforms and Modernization in

Nigeria Customs Service

Establishment of the Customs

Service in Nigeria
This dates back to 1891 under the
colonial administration.
T. A. Wall was appointed the first
Director General.
The Law governing the functions and
duties of NCS are contained in the
CEMA No 55 of 1958, now cited as Cap
C45 of 2004, Laws of the Federation of
Nigeria [LFN].

Reforms and Modernization in

Nigeria Customs Service

The core functions and duties

basically are:
I. Collection of Revenue from Customs
and Excise and Accounting for them
in a manner as may be directed.
II.Anti-smuggling activities so as to
achieve (i) above and safeguard the
country from dangerous imports or
exports.

Reforms and Modernization in

Nigeria Customs Service

NCS plays vital role in the Economic

Development of the country.
To cope with the increasing
challenges of economic
development, NCS has undergone
various reorganizations to ensure
efficient performance.

Reforms and Modernization in

Nigeria Customs Service

The 1975 1979 Reforms

The Reform was structural, merging the
technical and preventive units for
improved performance.
The 1985 1989 Reforms
NCS was transferred from the Federal
Ministry of Finance [FMF] to the Federal
Ministry of Internal Affairs.
The Customs, Immigration, Prison Board
was established.

Reforms and Modernization in

Nigeria Customs Service

The 1988/89 1994 Reforms

The government returned NCS to FMF
with the creation of NCS Board in
1992.
The 1994/95 1999 Reforms
A General of the Nigerian Army, S. O.
Ango was appointed Sole
Administrator.
A major achievement of this
administration was the replacement

Reforms and Modernization in

Nigeria Customs Service

The regime also midwifed the

introduction of the Automated
System for Customs Data [ASYCUDA]
which was then being implemented
on behalf of UNCTAD by ECOWASCCC.
The Professional Import Duty
Administrators (PIDA) were engaged
to complement Customs in the task
of Revenue collection.

Reforms and Modernization in

Nigeria Customs Service

The 1999- 2004 Reforms

A career Customs Officer, A. A.
Mustapha, was appointed the
Comptroller-General of Customs.
The ongoing reforms and
modernization began in earnest
during this regime with the full
implementation of the ASYCUDA.

Reforms and Modernization in

Nigeria Customs Service

ASYCUDA
The competing demands of trade facilitation and
controls in the International Supply Chain to detect
Customs fraud and offences necessitated the need to
strike a balance between the two interests.
ASYCUDA procedure provides NCS with the Automated
controls of cargo across borders within a framework of
laws, regulations and processing of Customs
clearance.
Migration from ASYCUDA 2.7 to 3.0 (++).
Full implementation of the Nigeria Integrated Customs
Information System (NICIS) which alongside the
ASYCUDA provide the platform for a Single Window

Reforms and Modernization in

Nigeria Customs Service

Achievements to date
Infrastructures
Customs offices renovated to meet
with the modern office standards.
CPCs are now open space yet with
physical separation between
Declarants and Customs, which has
largely reduced human contact
between officers and stakeholders.

Reforms and Modernization in

Nigeria Customs Service

Modern and befitting Corporate

Headquarters is almost completed.
The Customs Training Colleges at
Ikeja and Kano have been renovated
such that the trainees can now be
accommodated in very modern
hostels. The classrooms also can now
boast of modern teaching aids and
equipment.

Reforms and Modernization in

Nigeria Customs Service

Communication
NCS now operates a central Server
system (NCS network) at the
Headquarters, which enables;
Warehousing of all Import, Export,
Excise, Transit and Transshipment
data.
Interconnectivity with FMF, CBN,
NBS, NAFDAC, FIRS, SON, Scanning
Service Providers, Terminal Operators

Reforms and Modernization in

Nigeria Customs Service

All Designated Banks, Declarants,

Cargo Carriers, DTI Caf operators
can now also connect to the central
server.
The Wi-Fi technology is being test-run
to further enhance declaration
processing and connectivity.
Operations;
There is now a new workflow to
enhance processing of Customs

Reforms and Modernization in

Nigeria Customs Service

The new CET Tariff usage is further

enhanced.
Transition from PSI to DI is now well
grounded and the services of Scanning
and Risk Management Service
companies are better appreciated.
Strategic Plan for the future Customs
developed by a WCO Diagnostic Mission
to Nigeria.
Other areas of assistance by the WCO

Reforms and Modernization in

Nigeria Customs Service

e-Payment through the Designated

Banks achieved.
e-Submission of Forms M and Risk
Assessment Report [RAR] to the
Customs.
e-manifest submission right from
foreign enabled.
sms information to NAFDAC for
regulated cargoes for necessary
certification.
e-remittance on-line, real time from

Reforms and Modernization in

Nigeria Customs Service

Capacity Building
A critical index of Customs reforms and
modernization is Training. This Administration
has vigorously pursued training of all
categories of officers to equip them in line
with the modernization efforts.
Accession to the various conventions and
being signatory to agreements e.g. Kyoto,
ACV, Framework of Standards on the platform
of membership of the WCO has provided
relevant tools for enhancement of capacity of
the officers.
In the area of welfare, the officers have been
greatly motivated through salary increase,

Reforms and Modernization in

Nigeria Customs Service

Recruitment of new officers and men to

reinvigorate the work force.
Tools and Equipment
To enhance productivity of the officers
and men, the following have been put
in place;
Aircrafts
Boats
Vehicles
Arms and Ammunitions

Reforms and Modernization in

Nigeria Customs Service

Benefits Derived
Better human resource utilization.
Increased Revenue collection.
Noticeable improved compliance with
laws and regulations.
Improved relationship between
Customs and Trade.
Reduction in time of clearance of
goods.

Reforms and Modernization in

Nigeria Customs Service

Challenges
Increase in volumes and complexities
of International Trade.
Need to protect the nation from
unfair international trade practices.
Increase in public expectation from
Customs.
Demand for increased Revenue
collection.

Reforms and Modernization in

Nigeria Customs Service

Customs of the 21st Century

Way Forward
Globalization and other strategic
drivers necessitate a new approach
towards meeting the speedy
movement of goods across borders.
The building block for the Strategic
Directions as espoused by the
Secretary General can be summed
up as follows: -

Reforms and Modernization in

Nigeria Customs Service

Intelligence-driven Risk Management.

Customs-Trade partnership.
Implementation of modern working
methods, procedures and techniques.
Enabling technology and tools.
Enabling powers.
A professional, knowledge-based
Service culture.
Capacity Building.
Integrity.

Reforms and Modernization in

Nigeria Customs Service

Thank
you
very
much