These are very interesting times in the Nigeria Customs Service (NCS),
unarguably Nigeria’s second highest revenue generating agency, after the
Nigeria National Petroleum Corporation (NNPC). The voluntary retirement
of Abdullahi Dikko Inde as the Comptroller General of the organisation
in August and the subsequent appointment of Col. Hammed Ali (rtd) as his
replacement by President Muhammadu Buhari is, predictably, shaking the
very essence of the NCS.
Ali’s appointment was most unexpected. A close associate of the
President said he was the least considered for the top job following
speculations on the exit of Dikko Inde.
In the beginning...
The exit of Dikko Inde was not unexpected after all.
Appointed in 2010 by ex-President Goodluck Jonathan, his job was
considered to be on the line with the inauguration of Buhari as
President on May 29. Indeed, the NCS, perceived by many Nigerians as one
of the most corrupt government agencies, was slated for a massive
shake-up once the President settles down in office. But that was not to
be, as Dikko Inde was given the grace to stay on.
The former Customs boss obviously had his plans, which he kept close to
his chest. On August 3, Dikko sent a Notification for Retirement to
President Buhari. A source close to the ex- CG said he opted to retire
at that point, because he felt that if he remained in service until he
is 60, which is about six years from now, his staff development
programme will be jeopardized, because by then, many trained and
experienced officers would have retired.
According to sources, he reasoned that many current Comptrollers,
Assistant Comptroller Generals (ACGs) and Deputy Comptroller Generals
(DCGs) will retire by then; hence he decided to bow out in order to give
them a chance to grow.
Before he took the action, the Katsina State-born Dikko was subjected to
severe attacks by some groups due to what sources say was his perceived
closeness to ex-President Jonathan.
Within the same period, a pressure group, the Nigeria Customs
Transparency Initiative (NCTI), had dragged Dikko before the Independent
Corrupt Practices and Other Related Offences Commission (ICPC) urging
it to probe him over allegations of abuse of office.
Apparently aware that several powerful interests within and outside the
organisation wanted him out, the ex-Customs boss threw in the towel to
silence those making several allegations against his six-year tenure in
office, it was gathered.
A source who spoke to The Nation disclosed that contrary to insinuations
in some quarters that Dikko was prematurely forced out having lost the
confidence of the President, the man’s decision to leave the service was
voluntary.
“Nothing could be farther from the truth (premature retirement),” said
the source who added, “Dikko left on a high. He felt he had done his
bits and needed to give younger officers opportunities to grow. This
much he told the President, who gave his nod.”
Reiterating his claims that the ex-Customs boss had the President’s
confidence, the source said, “On the day Dikko retired, an ultra-modern
Customs Clinic was commissioned in Karu by Governor Nasir El-Rufai, a
confidant of the President. So, you can see mischief makers were behind
the rumour that Dikko was summarily fired by the President.”
On August 14, the President approved Dikko’s request to proceed on voluntary retirement.
The President, in the approval letter he signed personally, thanked Dikko for his service to the nation for six years.
The President’s letter titled, ‘Voluntary retirement from the Nigeria
Customs Service’ and dated August 14, reads: “Dear, Alhaji D.I.
Abdullahi, I write to acknowledge the receipt of your letter Ref. No.
NCS/ADM/HQ/P. 35802 of 3rd August, 2015 conveying your decision to
voluntarily retire from the Nigeria Customs Service (NCS) with effect
from Tuesday, 18th August, 2015.”
Succession drama
It was an emotional scene at the headquarters of the NCS at the pulling out of Dikko.
Men and officers could not hold back their tears, as the man they credit
for improving on the fortunes of the Customs and welfare of personnel
was taking his final salute in uniform.
After Dikko’s departure, his second in command, Mr. John Atte, inspected
a guard of honour signalling his taking over of the NCS pending the
appointment of a new CG.
And the waiting game over who would succeed Dikko began.
In groups of twos and more, Customs officers and men gathered in groups
discussing in hushed tones on whether or not Atte will be the
substantive CG.
As minutes rolled into hours, journalists were told to converge on the
Conference Room situated on the fifth floor of the imposing Customs
headquarters for briefing.
Not a few of the reporters present thought the announcement of the new
helmsman of the NCS would be made. But that was not to be. Much later,
an Assistant Comptroller sauntered in and announced that the briefing
has been postponed indefinitely. Atte’s tenure as acting CG turned out
to be very brief. Just about two weeks. On August 27, Hammed Ali was
appointed as the new CG by President Buhari.
Unease among the five DCGs
The Nation reliably gathered that Ali’s coming on board was a hard pill
to swallow for the five DCGs, all of whom had nursed the hope that they
would be considered to succeed Dikko.
The DCGs include John Atte in charge of Finance and Technical Services;
Adewuyi Akinade in charge of Tariff and Trade, while Mr. Nwosu Chukwuma
headed Strategic Research and Policy. Others are Musa Tahir,
Enforcement, Investigation and Inspection; Aliu Gabriel for Excise, Free
Trade Zone and Industry Incentives and ?Ibrahim Mera who headed Human
Resource Development?.
Multiple sources disclosed that one of the DCGs, who hails from the
North, had positioned himself for the top job using his highly placed
contacts to get the President’s nod.
The man was even alleged to have leaked sensitive documents during
Dikko’s last days in office in order to portray his former boss in bad
light. But with the man and his four other colleagues losing out, it was
obvious that their days in office were numbered. Not even assurances
from Ali that he was not out to witch-hunt anyone could put them at
ease.
Apparently for strategic reasons, Ali did not set out carrying out a
massive restructuring of the Customs. For weeks, he received
comprehensive briefings from his lieutenants before embarking on a tour
of all Customs formations and a visit to major stakeholders in the
security and maritime sectors. The tour is still ongoing.
For the now retired DCGs, deep down in their hearts, they knew that it was just a matter of time before they are given the boot.
The final moments for these officers came a few weeks ago following a
directive by Ali to them and other top ranking officers of the Service
to declare their assets.
That was the final straw. As a source painted the scenario that played
out immediately this directive was issued: “It (directive) jolted the
officers to no end. They regarded the directive as a clear message they
are no longer wanted in the system. For them, declaring their assets was
akin to committing suicide.”
Joint retirement
The announcement came like a bang. Not even Ali, the new Customs boss saw it coming.
At about 10am on October 29, the five Deputy Comptroller Generals (DCGs)
tendered their resignation letters to Ali. The resignations took
immediate effect.
They thanked the Federal Government for allowing them reach the height
of their careers and averred that there was “no more height to aspire to
in the Customs.”
Sources say the shocking resignation came after Ali approved a roster of annual leave for the DCGs.
Sequel to this, the DCGs allegedly convened an emergency secret meeting
where they all decided to tender a voluntary retirement notice. Their
decision to write a joint retirement letter, however, raised eyebrows. A
top Customs officer in his reaction to this says, “Why send a joint
retirement letter? Did they join the Service on the same day?”
More Tsunami
Barely 24 hours after the voluntary resignation of the five DCGs, the NCS fired 34 senior officers.
The sack was made known in a statement signed by Public Relations Officer for the Comptroller- General of Customs, Wale Adeniyi.
The terse statement read: “As part of on-going re-organisation in the
Nigeria Customs Service, 34 senior officers have been retired from
Service with immediate effect. The re-organisation of the Service is one
of the core mandates of the Comptroller-General of Customs, Col. Hameed
Ali (rtd).”
Three other officers of the rank of Assistant Comptroller-General were also affected.
They include the Secretary to the Nigeria Customs Board, Madu Mohammed;
Zonal Coordinator Zone ‘A’, Victor Gbemudu, and Assistant
Comptroller-General, (Headquarters), Bello Liman.
New DCGs
To fill the vacant positions, six acting Deputy Comptrollers-General were quickly named.
They are Idris Suleiman (Finance Administration and Technical Service);
Iya Umar (Tariff and Trade); and Dan Ugo (Enforcement Investigation and
Inspection). The rest are Grace Adeyemo (Excise, FTZ & Industrial
Incentive); Austin Warikoru (Human Resource Development) and Paul
Ukaigwe (Strategic Research and Policy).
Similarly, the CG appointed eight ACGs. They are Umar Sanusi (ACG
Headquarters); Funsho Adegoke (ACG ICT); Mohammed Abbas (ACG Board);
Olatunji Aremu and Charles Edike, Abubakar Dangaladima (Zonal
Coordinator Zone B); Azarema Abdulkadir (Zonal Coordinator Zone C); and
Chidi Augustine (Zonal Coordinator Zone D).
The DCGS and ACGs are to immediately take their new positions in acting capacity.
Also as part of the ongoing reorganisation, seven officers were equally
redeployed in the new exercise. They are ACG Adesina Odunmbaku (Finance
and Technical Service); ACG Robert Alu (Tariff and Trade); ACG Ade
Dosumu (Enforcement and Drugs); ACG Monday Abueh (Excise &
Industrial Incentive); ACG Ahmed Mohammed (Human Resource Management);
ACG Patience Iferi (Strategic Research and Policy) and Comptroller Aminu
Abba (Technical Services).
Ali in the saddle: The challenges at hand
From all indications, there is no doubting the fact that Ali is
determined to fully execute the brief handed him by the President, which
are “Restructure, Reform and Revenue”. But he has some challenges at
hand including increasing the revenue profile, tackling smuggling and
tax / duties evasion, ridding the service of bad eggs, reorientation of
the mindset of Customs officers and enhanced welfare.
Revenue palaver/foreign exchange restriction on 41 items
With dwindling revenue from oil, all eyes are on Ali to deploy his magic
wand to increase the revenue profile of the Customs Service. A service
noted for many revenue leakages and loopholes, Ali has a herculean task
at hand. The new CG is in the saddle at a time that there is foreign
exchange restriction on 41 items. The Central Bank of Nigeria(CBN)
suspended foreign currency funding of these 41 imported items to
preserve the nation’s depleting foreign reserves stock and boost
production activities in the country. The items include, vegetable oil ,
metal boxes, galvanised steel cement, margarine, palm kernel, poultry
products (chicken, eggs and turkey), Indian incense, tinned fish in
sauce (Geisha, Sardines), cold rolled steel sheets, roofing sheets,
wheelbarrows, head pans and containers, and enamelware. Others are
cosmetics, soap, plastic and rubber products, steel drum, steel pipes,
wire mesh, steel nails, wire rods, security wire, wood particle and
board, wood fibre boards and panel, plywood board and panel, wooden
doors, toothpicks, glass and glassware, kitchen utensils, tableware,
tiles and wooden fabrics.
Already, the statistics suggested a slight drop in revenue or stable
profile of the current rate. So far, the NCS collected N747.4billion
into the Federation Account between January and October this year. With
barely two months to the end of the year, it was obvious as at Friday
that the NCS may not be able to match 2014 record when it raked in
N977.09 billion , which was a shortfall of N223 billion from the N1.2
trillion projected for last year. According to a document, the
breakdown of the Customs Service revenue collection profile this year
is as follows: N73.2 billion (January); N69.5billion (February);
N78.9billion (March); N71.4billion (April); N68.4billion( May);
N76.4billion(June); N77.6billion(July); 78.2billion(August);
N74.7billion(September) and N78.4 in October.
The document shows an average of N74.7billion collection in 10 months.
But the collection under Ali’s watch was an average of N77.1billion in
three months.
The Public Relations of Officer of NCS, Mr. Wale Adeniyi however
expressed hope that the NCS would record increase in revenue generation
in the ’ember’ months to make up for the shortfall in its target. He
said: “A number of factors determine how much we generate. The most
important thing will be the rate of importation, if the volume of
importation drops, you would expect that the revenue that will accrue
from the importation will also drop.
“This has been the trend generally in the last three, four months. And I
will say that this is not peculiar to the Customs sub-sector. There has
been a general downturn in the economy; we hope that as the ’ember’
months come, we will be able to make up for the shortfalls that have
been identified in one or two places.”
On the 41 items, Adeniyi said, “I don’t see the revenue we would have
earned from these items as absolute loss anyway because the intention of
the policy is to manage our forex fortunes optimally and save forex for
the raining day.
“There seem to be a free drop of the Naira. There was need for urgent
action to arrest the downward fall. So, this is one of them. So I
believe there will be need for that kind of sacrifice in the economy.
“So I don’t see it as an absolute loss to the Nigerian Customs Service. I
am not seeing it as a serious challenge. I believe that with time we
will stabilize and Nigerians will learn to use forex optimally for
things that are absolutely necessary and not for luxury items and not
for inconsequential things.
“Nigerians should see the current restriction of forex not as a
punishment by the government of Nigeria. We must see it as a short term
pain that we must understand and we must understand and bear with. The
intention is to dedicate the better part of our forex to things that are
productive in the economy because it is the productive section of the
economy that owns the solution to our economy.
“Nigerians should learn to be patient about it and understand the need
that our emphasis, that our resources, should be tied to those things
that are productive, that add value to the economy and create jobs for
the teeming masses rather than wholesale importation of everything
whether they are luxury items, whether they are inconsequential items
like tooth picks.”
Battling smugglers/tax waivers/exemptions
Faced with porous borders, the nation is losing about $3 billion
annually to smugglers to the advantage of neighbouring countries,
especially the Republic of Benin whose huge revenue comes from smuggling
of goods into Nigeria. From Seme border to Chikanda, Illela, Kishi,
Jibiya, Onitsha and Port Harcourt, virtually every product is smuggled
into the country irrespective of prohibition list by the Customs
Service. The list of losses to smugglers include 400,000 barrels of oil
daily; about $2billion poultry products; about N345 billion worth of
exportable shea butter; over $1b for pharmaceuticals; seizure of 200,000
trailer loads of rice valued at N1.35 billion; and others. In 2013
alone, 46 customs officers were killed by smugglers.
The Poultry Association of Nigeria (PAN) in May said Nigeria currently
loses over $2 billion to smuggled poultry products. The National
President of the association, Dr. Ayoola Oduntan, said over 1.2 million
tonnes of smuggled poultry products, mainly frozen chicken and turkey,
had impacted negatively on poultry farmers in the country. He said the
local production had been at about 300,000 tonnes. He added: “Nigeria
cannot continue to be a subtle dumping ground for all kinds of poultry
and poultry products. Considering the high level of unemployment in the
country, the government must do everything it can to reopen closed farm
and develop the poultry industry, rather than wasting hard earned
foreign exchange on products that gives nothing but financial losses to
the economy.”
Breaking the jinx of tax waivers and exemptions in a politically
volatile environment like Nigeria is a nightmare for Ali. This is an
area where Ali will step on toes when pressure comes from either the
presidency and the big players in the economy or from supervising
minister. The immediate past Minister of Finance, Dr. Ngozi
Okonjo-Iweala, said about N170.74billion waivers and tax concessions
were granted to various government and private businesses between 2011
and 2013. At the same time about the NCS lost about N627.07billion
revenue within the same timeline of three years. An NGO, Action Aid and
Tax Justice Network Africa said in a report in August that four members
of ECOWAS(Nigeria, Ghana, Côte d’Ivoire and Senegal) lose an average of
$9.6billion revenue every year to tax incentives and waivers. Out of the
huge loss, Nigeria accounted for about $2.9 billion (N577 billion) to
waivers every year.
The Public Relations of Customs Service however said: “He (Ali) has
particularly emphasized the issue of smuggling, warning officers to
ensure that smuggling is reduced. Of course the interpretation of this
will be that goods that were being smuggled, if they come up to pay duty
it will shore up our revenue.
“So far, over N1billion has been realized from rice, particularly those
that come in from the border stations. So this is one major change he
has introduced because before now rice is smuggled in big volume across
the border stations. Because the importation of rice was restricted
through the borders we could not even generate revenue from them even
when they turn up, but since the reversal of that particular directive,
we have been having rice in big volumes through the borders, and they
have been paying.
“And you can see from the revenue profile that the Area Commands that
have boarder stations have had increase in their revenue particularly in
the North West and in the South West.”
Anti-corruption war
This is a banana peel that every successive Comptroller General of
Customs Service has been avoiding. It is a war Ali must fight with an
unyielding focus because no CG has ever won the battle. All the past CGs
who attempted a cleanup of Customs Service were also consumed. The war
has been difficult to wage because corruption is already a way of life
such that new recruits go into the service only to make money. Ali is
also in the midst of billionaires and millionaires who will find it
extremely difficult to adjust to the new ethos. Instead, the cartels in
Customs Service will deploy their arsenals to sabotage the new helmsman.
The mass resignation or retirement of the DCGs was a pointer to the
existence of a “powerful cult” in the system.
A high-ranking Customs Officer said: “These cartels have groomed and
positioned their surrogates to the extent that the next five generations
of leaders in NCS will be at their beck and call. They can tolerate Ali
for four or eight years but the corruption syndicate cannot be uprooted
in Customs Service. We are only praying for Ali to go far in his
reforms.”
But right from his first day in office, Ali drew the battle line. He
said: “Since I took over, I have been receiving briefing notes to
enhance my understanding of the Nigeria Customs Service. I have
articulated some ideas to start with, and I have found it necessary to
share these ideas with you. These ideas shall be the guiding principle
and platform for a smooth takeoff.
“First and foremost, it is important that we know where we are going. We
can start by ensuring that we pick up the mantle of Mr. President’s
policy thrust. Therefore, in conjunction with you, moving with you and
fighting with you we will fight corruption and restore discipline
through attitudinal orientation for effective service delivery.
“However, I must stress this for emphasis. I will not tolerate
indiscipline. I will not tolerate corruption. I have zero tolerance for
corruption.
“Considering my military background, I believe punishment must be
punitive for others to see as deterrent. Therefore, as an officer of the
Nigeria Customs service, if you are caught involved in corruption, I am
not only going to dismiss you, I will make sure I prosecute and jail
you. That is basic!”
17 agenda, mindset and welfare
Besides the war against corruption in the service, Ali reeled out 17
other agenda to reposition the Customs Service. In an unprecedented
manner, Ali has traversed more than 70 per cent of the borders to
identify with Customs officers on ground. He said: “We will optimally
achieve the core statutory functions of the service, of revenue
collection, trade compliance, and facilitation, anti-smuggling
activities, national security amongst others, based on the service motto
of “Honesty and Justice”.
“We will commensurately further enhance the welfare of officers and men
for maximum service delivery. We will ensure the strict application of
Customs and Excise Management Act (CEMA) CAP-C45 Laws of Federation of
Nigeria (LFN) as amended 2004, Customs codes, Extant Laws and Federal
government’s circulars in all customs operations, through training and
re-training of officers and men on how to apply them in their day to day
operations.
“We will address all anomalies manifest in recruitment, training,
posting and promotion of officers and men of the service. All Customs
officers and men shall adhere strictly to the Customs clearance,
guidelines and procedures. All Customs Area Controllers, Head of Units
and Departments shall be held accountable for all established
infractions to do with false declaration, deliberate misapplication of
the tariff, undervaluation and concealment.”
The Customs boss, according to the spokesman, has been addressing the mindset of the officers and stakeholders.
Adeniyi added, “He (Ali) has managed to convinced them that it is
Nigeria first. It is the economy first before any other thing.”
The Customs boss is also said to have placed emphasis on improved
welfare for the men and officers of the Nigeria Customs, especially with
emphasis on infrastructure and accommodation.
The spokesman said Ali has not minced any word in saying that he will
approach the President and ask for better condition of service when
there is corresponding revenue generation.
What next for Ali?
Uneasy lies the task ahead for Ali, he needs to be creative, deploy
technology and motivate his officers and men to restore the Customs
Service to its era of high-yielding revenue. At the end of the day, he
will not be judged by how many whips he inflicted on errant customs
officers but he will account for the revenue generated by the Service.
Being a neophyte in Customs service, this is the time to learn faster as
a soldier on an emergency assignment.
The nation awaits his revenue Sit-rep.
- Report by Yusuf Alli, Remi Adelowo and John Ofikhenua of The Nation
