Adeniyi Gets into the Saddle as New Customs Boss

Opening  Business

Festus Akanbi writes that the choice of Mr. Wale Adeniyi, a career officer, as the new helmsman of the Nigeria Customs Service will not only restore the confidence of the rank and file of the agency, it will also reposition the service to tackle its failure to maximise its capacity in revenue generation and insulate the economy from the menace of smuggling

It is not in doubt that the current administration is under very severe revenue pressure as the reality of governance is beginning to make nonsense of the illusion of political campaigns that preceded the 2023 general election.

Economic affairs commentators, therefore, observed that one month after coming into power, the greatest challenge is how to fund the 2023 budget of N21.83 trillion. The problem is accentuated by the erosion of revenue derivable from the sale of crude oil, which forms the bulk of the revenue accruable to the government. 

The 2023 budget maintained the recurrent expenditure at approximately N8.27 trillion, while capital expenditure increased from N5.35 trillion to N5.9 trillion and debt servicing also increased from N6.31 trillion to N6.6 trillion.

With the flip-flop performance of the oil sector, analysts said it is natural for the government to shift to the two other major revenue-generating firms, the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS). 

In 2022, the FIRS collected N10.1 trillion in revenue while it received N200.16 billion, representing two per cent of total generation as the cost of collection. On the other hand, the NCS, which followed with N2.60 trillion in revenue generation, withdrew N128.64 billion (5%) as the cost of collection. 

While there were reservations in the recent call for the introduction of more taxes, on the other hand, a wide spectrum of economic watchers believe the customs service, if well positioned, stands the chance of doubling its revenue performance within a short time frame. For instance, towards the end of the immediate past administration, there were calls for restructuring of the NCS in a way to bring the desired revenue haul.  

For instance, there were campaigns for the appointment of the head of the agency among customs officers instead of bringing a non-customs officer as in the case of Col Hammed Aliu, the immediate past Comptroller General who was a former military officer.

New Dispensation

It was this scenario that heralded the appointment of Adewale Bashir Adeniyi, a Deputy Comptroller General, as the acting Comptroller General of the Nigeria Customs Service. Adeniyi is the 14th indigenous comptroller-general of customs and 31st since its establishment in 1891.

Interestingly, a few days before his handover, former President Muhammadu Buhari assented to the Nigerian Customs Service Act and according to “Section 14(1)(a) of the Act, “The President shall appoint a career officer from the service, not below the rank of Assistant-Comptroller General (who shall be responsible for the overall management of the service) and be accountable for all revenue collections and all expenditures made under this Act”. 

Analysts said with the appointment of Adeniyi, President Tinubu has confirmed his resolve to right the wrongs in the revenue-generating agency.

Until his appointment, Adeniyi was in charge of Strategic Research and Policy at the Customs Headquarters in Abuja. Analysts described his choice as another masterstroke from President Tinubu to avert the kind of initial crisis that heralded the appointment of Colonel Hammid Ali (rtd) on  August 27, 2015. They maintained that with the urgency of the need to boost revenue, the current administration does not have the luxury of time to waste on squabbles over the appointment of who leads the customs service.

Removing Encumberance to Goods Clearance

One of the issues which Adeniyi has to contend with, as a matter of urgency, is the difficulty in goods clearance, which the neighbouring countries are exploiting by offering respite to Nigerian exporters being frustrated by the cumbersome process at home.

The question is why do Nigerian importers prefer the ports in other countries to our seaports?  What happened to the operation of the Automated System for Customs Data (ASYCUDDA) or Single Window Projects initiated to make the clearing of goods faster and in line with international standards? 

There are reports that alleged corruption has continued to bug the projects down.  Analysts, therefore, believe that Adeniyi’s appointment as the new helmsman should be able to turn things around. 

Tackling Smuggling Cartels

One other important issue that calls for the urgent attention of the new helmsman is that of smuggling and the attendant crippling of the local industries. Smuggling hurts the economy in several ways. Because it is an act of tax evasion, the government is deprived of the much-needed revenue to provide social services and undertake development projects, especially for an economy that is vulnerable to external revenue shocks. Illegal activities are also putting local industries at a big disadvantage as inferior goods finding their way into the country make locally produced ones unattractive. For instance, reports have it that the various efforts of federal and state governments to encourage local rice production are being frustrated by rice smuggling in many parts of the country as different brands of the product, especially from Thailand and India are flooding into some markets in Kano, Jigawa, and Katsina states. This is an area where the new helmsman of customs is expected to make a difference. 

Instead of the current practice where customs personnel chase smugglers into border towns and villages with dire consequences on residents, analysts said Adeniyi would be expected to lead the agency in preventing smuggling through proactive measures. There is therefore the need for the Acting CGC and his team to sit down early in their administration to re-strategise and increase aerial surveillance along the Northern corridors to check the influx of arms from that axis, as well as, the massive smuggling from the neighbouring countries.

To achieve this, there is a need to promote transparency in cargo examination by installing ICT equipment, especially scanning machines in the Arrival Halls of international airports.

The Profile

A professional that is conscious of the need to build a solid image for the agency, Adeniyi once served as customs spokesman for almost two decades until January 2017 when he was redeployed to the Apapa Area Command as a Deputy Comptroller.

He was promoted to the rank of Comptroller in 2017 and appointed Deputy Commandant of the Nigeria Customs Command and Staff College, Gwagwalada, Abuja.

In 2019, he was redeployed to serve as the Controller of the Murtala Muhammed International Airport (MMIA) Command, Lagos.

He was promoted to the rank of Assistant Comptroller General in February 2020 shortly after he supervised the seizure of $8.07 million cash being illegally taken out of Nigeria through the E-Wing of the international airport tarmac. He was subsequently posted to head the Nigeria Customs Command and Staff College, Gwagwalada, Abuja as Commandant.

In recognition of his service, former President Muhammadu Buhari, on October 11, 2022, conferred the national honour of Member of the Order of the Federal Republic (MFR) on Adeniyi. 

It is expected of him to make a big difference and justify the clamour for the appointment of a career officer as the helmsman of the agency. Nigerians are indeed waiting for his Midas touch. How soon this will happen will be dependent on his style of leadership.