In May 2006, when the renowned World Economist and former Managing Director of the World Bank, Dr. Ngozi Okonjo-Iweala was at the helm of affairs at the Federal Ministry of Finance, she invited some experts at World Customs Organisation (WCO) to audit the performance of the Nigeria Customs Service.

The objective set by the then government of Olusegun Obasanjo for the mission was to conduct a diagnostic study of the performance of the reform and restructuring policy it carried out on the service in 2004.

Okonjo-Iweala

The WCO experts were also among other issues mandated to: assess the state of Nigeria Customs Service as at 2006 against the World Customs Organisation’s Safe Framework of Standards to Secure and Facilitate the International Supply Chain (SAFEFos) of which the service was signatory of the letter of intent to implement; make recommendations and assist in the development of actions that are required to move towards the implementation; identify support available for WCO and the broader international community for the reform and modernisation programme.

The team deployed the framework to examine areas of strategic management, resource administration, legislation, procedures, information technology, external relationships, governance and co-ordination of development projects. The audit which was conducted between July 24 and September 30, 2006, according to its report, identified: that there was significant lack of compliance generally, which has an impact on the effective operations of Customs due to lack of moral authority of its personnel; that there was lack of overall vision of the then management for the future Customs required by Nigeria and over reaching strategic plan to guide the reform process;

That the management of the service had not put in place the reform structures required to manage the extensive modernisation programme and specialist support for policy programme and contract management; that Customs clearance was complex, over staffed and time consuming; that despite the adoption of ECOWAS tariff, there remains a significant number of tariff changes, exemptions, non-compliance, coupled with development of private bonded terminals which impede trade and are difficult to police effectively and in some cases encourage smuggling; that overall pay and welfare conditions for Customs personnel, particularly junior grades were inadequate and had led to widespread supplement of income through second occupations and corrupt practices; that lack of recruitment, training and adoption of Pre-shipment Inspection left the service with lack of basic skills and significant lack of understanding of modern Customs techniques.

After thorough analysis of the issues raised above, the diagnostic team recommended that there should be development of a strategic vision and supporting plan covering the reform of the service over a period of 10 years.

The plan should cover short term goals from January 1, 2007, to January 1, 2014 and long term goals to January 1, 2017 and that every other issue in the report are subject to this particular recommendations being accepted. Within the strategic plan, there should be a platform for the development of compliance, which will enable modern control techniques to apply.

It was the view of the diagnostic team that the budget (7% of Customs import Duty Collection), will only be sufficient to cover the running cost of the service. As the reform programme will be taking place in parallel with the reduction in revenue collection due to introduction of ECOWAS common external tariff, concessions, waivers and other industrial incentives, the service should approach the government annually for additional capital funding required for reform. That the service should ensure that the system to provide payment for expenses involved in proceeding on transfers and travels receive timely payment.

It was also recommended that the service should introduce specialisation to develop expertise and operational support in areas of classification (HS Code), Valuation, Enforcement and Criminal Investigation, and this staff should be permanently assigned to their areas of specialization.

It further said that the service should introduce a promotion process which has managerial assessment and examination or skill testing element and that senior officers attending the proposed staff college should receive training in international trade, basic economic theory, change management, risk assessment and management, compliance, facilitation, leadership and motivation. The report was submitted to the government in December 2006, adopted and endorsed to customs by the middle of 2007 for implementation.

As many of the things Dr. Ngozi Okonjo-Iweala should do on assuming office in this her second coming as the country’s Finance Minister would include the assessment of the implementation level of some economic and reform policies she initiated before her exit in 2006, part of which is the state of the reform process and extent of implementation of reports of WCO diagnostic team in Nigeria Customs Service, she will definitely not be disappointed as her vision for the service and purpose of inviting the experts are now being fulfilled.

They include:- maximizing potentials of the service through capacity building, moral rebirth for discipline and integrity in the service; providing incentives for productivity and ensuring an enhanced welfare package for officers and men, continued collaboration and partnering with stakeholders and international organisations and fostering understanding of the service in the eye of the public, using intensified public relation platform; consolidating on the e-Customs initiative through ASYCUDA for international best practices. The agenda was drawn in line with WCO framework, standards and diagnostic recommendations which essential factors are enhanced strategic management, improved human resource management, optimisation of information and communication technology; increase in salary and welfare of personnel, reinforced partnership with stakeholders and international organizations.

Two years down the line, an assessment checklist of activities of Dikko-led administration indicates a well thought out plan and deliberate effort to steer the service to the path of real reform.

This conclusion could be built on the achievement of the service in the last two years which include: establishment of full department for capacity building and human resources development, 100% increase in salaries of officers and men and prompt payment of leave, travel and transfer allowances.

The adoption of electronic interface with stakeholders for manifest submission, declaration, duty payment and duty remittances, procurement of operational vehicles and sophisticated weapons to fight smuggling and securing the nation’s borders; massive investment on ICT development, construction of barracks, WCO Regional Training Centre, medical facilities and provision of drugs, acquisition of 120 unit of three-bedroom duplex furnished with state-of-the-art household equipment; instilling discipline through prompt action on disciplinary cases which has resulted in suspension, interdiction and dismissals; gaining political backing of the government and legislative arm which resulted in obtaining intervention funds from the government for the service, and a lot of other landmark measures that have led to all time high increase in revenue generated and seizures made by the service since its inception.

Among the six-point agenda of Dikko’s administration, the two that have boosted performance of the service are massive local and foreign training programmes Dikko initiated and strategic partnership with WCO as well as active participation of the service in the activities of the global organisation’s. In dealing with issues of repositioning and capacity building, Dikko understood the need for training and re-training as a tool for sustainable development. In tandem with the WCO experts’ diagnostic recommendations on training, human resources development department was created on his assumption of office to facilitate the actualisation of the vision of his six- point agenda.

Another laudable policy initiative which has not only placed the Service at the center stage of activities of WCO, but also boosted the country’s image is the entrenchment of the service into the global Customs community by Dikko. Being mindful of immense technical, managerial, diplomatic, material and financial benefit that abound in participating actively in WCO’s activities, Dikko in compliance with recommendations of the diagnostic experts, strategically positioned the service to participate in all meetings of WCO both in various committee and general assembly levels.

What the service that has witnessed four Comptrollers-General in five years needs now is stability, as frequent changes in management is a major contributor to dislocation in the journey to full implementation of the recommendations of the WCO diagnostic team.

The federal government needs to provide enough political cover and adequate financial support to see the reform through in line with the seven year short-term phase of the recommended implementation time frame which is in its fourth year.

More importantly, as the minister is a stickler for good governance and strict compliance with government’s fiscal policies, she should also focus on ways of reforming fraudulent importers who indulge in massive abuse of numerous industrial incentives introduced by government to jump-start nation’s economic and industrial development.

Concealment, smuggling, wrong classification, under-declaration and under-valuation of imports which not only result in revenue losses running into hundreds of billion of naira annually, constitute serious security risks as unwholesome and dangerous cargoes enter the country through their activities, but also constitute strong barriers to the nation’s quest of joining the first 20 highly industrialized countries by the 2020 should be fought frontally by seriously punishing the culprits as economic saboteurs.

Okey Ibeke is Publisher/Editor-in-Chief Business & Maritime West Africa.