Okonjo-Iweala Urges Nigerian Customs to Enhance Risk Management, Cut Inspection Rates for Faster Cargo Clearance

Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, has called on the Nigeria Customs Service (NCS) to adopt improved risk management practices and enhance compliance in trade processes to expedite cargo clearance at the nation’s ports.

Addressing the customs comptroller-general’s conference via a virtual speech, Okonjo-Iweala emphasized the stark contrast between Nigeria’s inspection rates and those of developed countries, where fewer than one percent of shipments are physically inspected. In Nigeria, roughly 90 percent of cargo undergoes physical inspection, with an additional nine percent scanned.

“Without stronger risk management and a corresponding reduction in inspection rates, meaningful acceleration of the clearance process will remain out of reach,” Okonjo-Iweala noted. “Efficient risk management needs to be paired with improved compliance, consistent feedback from inspections, and reduced discretionary power for officials.”

She outlined the importance of establishing predictable customs regulations backed by effective penalties to drive compliance, and she encouraged customs personnel to execute their responsibilities with diligence.

“The predictability of tariffs and other measures in Nigeria remains limited, as frequent fiscal policy adjustments impact tariffs, often influenced by various external factors,” Okonjo-Iweala said, underscoring the need for stability in trade policies.

Okonjo-Iweala added that the conference aims to rally support for ambitious customs reforms crucial to strengthening Nigeria’s trade environment.