FOU, Multiple Checks, Pains In the Neck Of Freight Agents—Stakeholder Cries Out
FOU, Multiple Checks, Pains In the Neck Of Freight Agents—Stakeholder Cries Out
…..says lack of trust amongst Customs reason for multiple units
By Jerry Aguigbo
As Nigerians battle with the astronomical cost of living occasioned by the high clearing cost and exorbitant Exchange Rate, a Stakeholder in the Clearing or Freight Forwarding business; Abayomi Samuel Duyile, Chairman of the National Council of Managing Directors of Licensed Customs Agents (NCDMLCA) Apapa Chapter , and Deputy President Of the Council who spoke with Todaynews says;
“Our ports are improving, but the bottlenecks are killing trade,”
In a no holds bare assessment, he faulted the escalating duty exchange rate, rampant FOU road seizures, and overlapping customs units, warning that Nigeria cannot achieve 48-hour clearance under the current system
Speaking during an exclusive interview with Todaynews Mr. Duyile described the present state of customs brokerage as “fairly improved” compared to previous years, but is apprehensive that the sector still faces deep-rooted issues threatening trade facilitation and economic competitiveness.
Low Import Throughput Amid Rising Customs Revenue
Mr. Duyile noted a paradox in current port operations—import throughput has dropped dramatically over the last five to seven years, yet customs revenue continues to rise.
He linked the low import volume to the volatile foreign exchange regime.
“Five years ago, we were operating at an exchange rate of about ₦750. Today it’s about ₦1,500. This has tripled duty payments and made imports extremely expensive,” he said.
According to him, a 20ft container that once cost ₦2.5–3 million to clear now attracts about ₦7 million in duties, while a 40ft container clearance has risen from ₦7 million to as high as ₦15 million.
This, he said, has pushed many importers out of business and increased market prices.
Call for Fixed Exchange Rate for Import Duty.
while addressing the cascading import costs, the NCMDLCA boss appealed for a pegged exchange rate strictly for duty assessment.
“The government can peg it at ₦1,000 just for duty purposes. Manufacturers have asked for ₦800–₦1,000. Doing this will reduce inflation and revive importation” Duyile suggested.
B.Odogwu System Working, But Implementation Key
While praising the Nigeria Customs Service (NCS) for improvements in the newly introduced B.Odogwu automated clearance platform, he said initial challenges have largely been resolved.
“The system is now working well. Customs responded promptly to feedback and fixed the grey areas.”
On the proposed One-Stop Shop clearance system, he expressed optimism but warned that implementation could be undermined if old practices persist.
“Customs has good ideas, but implementation is usually the problem. If old units like CIU, FOU, Compliance, and others remain in the system, clearance will never be 48 or 72 hours as promised,”Duyile warned.
‘Multiple Checkpoints Are Crippling Trade’
One of the most pressing concerns, he said, is the indiscriminate interception of containers by Federal Operations Unit (FOU) personnel on the highways.
“Every container is stopped on the road today. Containers examined at Apapa are taken again to Ikeja for manual re-examination. This is done nowhere else in the world” he noted.
He revealed that containers taken to the FOU warehouse undergo checks by up to 10 different offices, and clearing agents are made to write an unnecessary “appeal letter” to the Controller before cargo release—often after spending money to navigate offices.
He urged Customs management to keep FOU officers out of inner-city roads and relocate them to border corridors.
Council’s Interventions
Mr. Duyile noted that the NCMDLCA has participated in 165 government committees and 9 presidential committees on customs reforms.
“We keep talking; we won’t stop. The Customs CG is also Chairperson of the WCO, so charity must begin at home. They must strengthen internal trust and reduce overlapping units”, he asserted.
Agents Must Improve and Get Trained
On compliance, he admitted that while most licensed agents are compliant, training gaps remain a major issue.
He said,“Some agents don’t understand classification, tariff reading, or explanatory notes. Customs should partner with us to train them. On our part, we conducted a three-month training earlier this year with over 50 participants.”
He lamented that many agents avoid training due to ignorance or the easy entry process into the industry.
Future of Customs Brokerage
Looking ahead, he projected a more digital, more demanding customs environment.
“The new generation of customs officers are well-read and tech-savvy. Any agent who is not trained cannot survive. Automation is the future,” he said.
He predicted a surge in export activities over the next decade, which will redefine the freight sector.
Not Yet There… But Better Than Before
While commending the Customs CG for stakeholder engagement and reform initiatives, Mr. Duyile said the system still requires deep structural adjustments.He said customs must build trust amongst themselves,as lack of trust amongst the customs is the major reason for multiple checkpoints and why units like the FOU and others create bottlenecks in the clearance process.
“The persistent presence of the FOU on the highways raises serious questions about the integrity and internal coherence of the Nigeria Customs Service. It clearly reflects a lack of trust within the system. Otherwise, how does one justify a situation where a container duly released by Customs inside the ports is again intercepted on the road by another Customs unit, subjected to a fresh round of manual examination as though the initial clearance were meaningless?” Duyile argued.
In order to address this situation, he suggested that,” Rather than manning road Checkpoints to intercept containers, the FOU unit should be drafted into the ports to jointly do examination of containers along side other relevant agencies and units, so there won’t be need of stopping containers on the road.”
Asked how satisfied he is with port operations and services, the deputy president of the NCDMLCA said,
“We’ve improved compared to the past, but we’re not there yet. There’s still room for improvement and structural reengineering”
His Advice to Agents
He encouraged customs agents to embrace professionalism:
“They should upgrade themselves, get training, and always do the right thing if they want to remain relevant in the system “.
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