Customs Debunk High Cost of Clearing Vehicles from Nigeria vs Benin Republic

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Customs seized vehicles

By DAPO OLAWUNI

Comptroller Dera Nnadi, Customs Area Controller for Tin Can Island Port, has dismissed the widespread belief that clearing vehicles in Benin Republic is cheaper than in Nigeria.

Compt Dera Nnadi

Speaking at the second edition of the Maritime Reporters’ Association of Nigeria (MARAN) Annual Maritime Lecture (MAMAL 2024) in Lagos on Thursday, he argued that the perceived cost advantage is a “fallacy” that demarkets Nigeria’s ports.

“People often claim it’s cheaper to clear vehicles in Benin Republic, but this is not true. In reality, the cost of clearing a car in Benin is almost equivalent to buying the car itself, especially if it’s for use within Benin.” Nnadi explained.

Drawing from his experience as a former Customs Area Controller in Ogun and Seme Command, Nnadi emphasized that Nigerian ports offer competitive advantages and robust systems to facilitate cargo clearance.

He refuted the notion that Nigerian ports are being bypassed for neighboring countries, stating that such narratives harm Nigeria’s trade reputation.

To address complaints about delays at Nigerian ports, Nnadi highlighted the introduction of modern clearance systems aimed at expediting cargo processes. These include the Fast Track platform, introduced in 2008, and its improved version, the Authorised Economic Operator (AEO) program.

“The AEO program allows compliant importers to move their cargoes directly from the port to their warehouses, where Customs officers will inspect them. If these inspections show no irregularities, the importer continues to enjoy the benefits of the program. It is a system that rewards high integrity and compliance,” he explained.

Nnadi further noted that making correct declarations is critical to enjoying a seamless clearance process. However, he warned that wrong or fraudulent declarations would prompt Customs interventions.

Nnadi also addressed allegations of Nigerian-bound cargoes being diverted through neighboring countries and smuggled back into Nigeria. He dismissed these claims, stating:

“The idea that Nigerian cargoes are diverted to other countries is incorrect. If you think it’s cheaper to clear cargo in Benin Republic, I challenge you to try it. Nigeria has implemented systems to make trade more transparent and efficient.”

The Customs chief encouraged stakeholders to shift their focus from importation to exportation, citing the financial benefits of exporting goods from Nigeria.

“The remuneration from exporting cargoes is so significant that many people don’t realize it’s more profitable than importing. Nigeria has vast opportunities for exporters who embrace compliance and leverage our evolving trade platforms,” he said.

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