FG losing trillions of naira to temporary importation license — Reps committee
By Seun Ibiyemi
The House of Representatives Committee on Customs and Excise has condemned what it described as the widespread abuse of the temporary importation licence system by corporate bodies in the country and called for its abolition.
In addition, the committee announced plans to invite the concessionaires of the Customs Modernisation Project, TMP Limited, along with the Comptroller-General of Customs, Bashir Adewale, to provide clarity on the expected arrival of new customs scanners.
Speaking during an oversight visit to Customs Commands in Zone C, Committee Chairman Leke Abejide expressed concern that the abuse of the temporary importation licence was depriving the government of billions of naira in revenue annually.
Abejide noted that it was troubling that corporate bodies and individuals were bringing goods such as aircraft into the country under the temporary importation scheme, using them for years without paying the required duties. He cited the example of Zenith Bank, which imported an aircraft under the temporary importation system, used it for several years, and then replaced it with another aircraft without fulfilling its duty obligations.
He said, “The other day, the Group Managing Director of Zenith Bank called me to complain that Customs had refused them the use of their aircraft. They brought in an aircraft, used it for several years, returned it, and then brought in another without paying duties.”
“That has to stop. We will address this issue of temporary importation, which has cost the country trillions of naira. We will look back over the past five years and recover the funds owed to the government.”
Abejide went on to announce plans to push for the abolition of the temporary importation system, asserting that any goods brought into the country should have the required duties paid upfront, with the option to return them later if desired.
On the issue of customs scanners, Abejide explained that the Customs Modernisation Project required the concessionaires to provide scanners to assist the Nigeria Customs Service in its work. He revealed that the committee would invite the concessionaires and the Comptroller-General of Customs to clarify when the scanners are expected to arrive in the country.
He added that without the scanners, the Customs Service faced significant challenges in effectively carrying out its duties, as many items slip through undetected during 100 per cent physical inspections.
Addressing the needs of the Comptroller of the Eastern Marine Command, Abejide assured that the committee would ensure their concerns were addressed, recognising the critical importance of their operations to the country’s security. He urged them to intensify efforts in the fight against oil bunkering and theft, which he noted had severely impacted the country’s oil production.
Additionally, Abejide promised that the committee would work with the Customs high command to ensure the provision of solar mini-grids for Customs formations, to reduce the high cost of electricity and mitigate the challenges caused by power failures that could hinder operations.
Comptroller Chika Dim of the Eastern Marine Command informed the committee that the inadequate firepower of the service was hindering their efforts to combat oil theft, highlighting that while those involved in oil theft were armed with General Purpose Machine Guns (GPMGs), the Customs officers were only equipped with AK-47 rifles.
Customs stakeholder Mike Egbuato also raised concerns about what he referred to as a freight imbalance affecting the operations of the Customs in the zone, suggesting that it was a factor in the challenges faced by the service.
