Gains of Reinvigorated Enforcement, Revenue Generation At Apapa Customs Port

BY EGUONO ODJEGBA

The common trend preceding the 2006 port reform exercise that led to the concession of the seaports to terminal operators was ‘container flying’.  For those unfamiliar with this term, it was simply an exercise in which unscrupulous importers, customs agents and few others in the port system indulged in taking containers out of the ports non procedurally.

This way, they evaded all the processes in cargo examination including payment of duties.  Perhaps, the worst of the scenario was that some of the containers could have been contraband. So, in effect, some criminals may have brought into the country offensive items such as restricted medications, drugs   or weapons which have raised the state of insecurity beyond control. That was the era of racketeering when some set of mafia or syndicate ruled the ports.

The syndicate lasted for long before the reform exercise brought some changes at the ports.  With the seaport terminals under concessionaires who had the responsibility to account for the cargoes under their care, ‘container flying’ took a back seat. But as it is often said, bad habit dies hard. In the past few years,   unscrupulous importers and customs agents are believed to have introduced another worrisome method to undermine the system. As against the trend of ‘flying containers’ the new trend has been in the area of under-declaration, concealment and underpayment; identified as a common economic crime among traders.

The good part is that the Nigeria Customs Service (NCS) which has the responsibility of bringing the culprits to book have stayed awake to this task. The   Service has had the prerogative of simply collecting the appropriate duties,   imposing penalties in line with the Customs Act and the importer is allowed to take his goods. This is if the items involved are trade goods and not contraband.

 Revenue Generation, Anti- smuggling

No doubt   the port reform exercise brought about some changes to all the agencies of the federal government.  With roles and revenue generation shared between the concessionaires and government agencies, every agency had to hit the road running.  It was time to work hard for more revenue. The sector needed to increase its contribution to the Gross Domestic Product (GPD). But in all this, it would appear that no agency has been under as much pressure as the Nigeria Customs Service (NCS).

In the past few years,  the Service  has witnessed  intense pressure to generate more revenue for the federal government following the steady but sustained fall in crude oil production and the attendant dwindling revenue, a development that has continued to impact negatively on the national economy. The dwindling national revenue required the intervention of other sectors, including the maritime sector to provide a broad base revenue generation system; even if it is only in the interim. This has made the maritime sector assume the next net window in terms of revenue generation and contributions to the national economy.  From empirical evidence the Service has filed out proudly in fulfilling this national expectation. It has continued to increase revenue generation every year.  It has been a national service in which strong measures are regularly activated to address any area of leakages also regularly being churned out by the recalcitrant economic saboteurs.

As the premier port and the biggest of all the seaports in Nigeria, Apapa  port occupies a special position in the scheme of things. It generates the highest cargo traffic as well as  the highest revenue earning, roughly estimated as  60 percent overall of customs revenue; the accomplishment of which is a lot of task for the Customs Command.  To be able to meet up with the expectations of the federal government, the Customs Command led by Comptroller Babatunde Olomu fsi, has since assuming leadership, put in place strategic anti-smuggling and stringent revenue administration and monitoring system; in line with the vision of the management team led by Bashir Adewale Adeniyi MFR to bring about efficient reform that promotes trade facilitation, efficiency, revenue generation and anti-smuggling.

Olomu ensures that the Adeniyi reform trajectory encapsulated in process modernization, enhanced revenue generation, trade facilitation, engagement and partnership finds expression in every transaction. This has helped the command to record impressive performance in all fronts.  While the unbeatable revenue figures keep recording higher scorecard, the seizures of questionable goods have been massive, puncturing a hole in the wall chest of funds of economic saboteurs and smugglers; as amply reflected in the revenue figure and seizures recorded in the past few months.

As at the first quarter 2025, the Command announced a revenue generation of N753.8bn. Comptroller Olomu disclosed this when members of the House Committee on Customs led by Hon  Leke Abejide visited the port. Olomu said the figure showed 54 percent increase higher than what was realized during the same period of last year. Specifically, the amount is N205billion higher than the N489billion generated during the first quarter of 2024.

Olomu told the visiting federal lawmakers that the Command collected N18.9bn on March 14, 2025,  a figure he described as the highest daily collection  in the command’s 135-year history. The Command, it was gathered,   earlier in the week had collected N1trillion giving a strong indication that it is focused and prepared to meet its 2025 revenue target of about N2.7trillion.

The command’s anti-smuggling operations have been no less up and doing having recorded massive seizures in the past few months. It will be recalled that about two weeks ago, the Command announced the seizures of pharmaceuticals and expired margarine products which Duty Paid Value (DPV) was put at N921million. This, among others, attracted the Comptroller General of the Service, Bashir Adewale Adeniyi to Lagos, to personally present the Apapa Command scorecard.   At a press briefing, Adeniyi disclosed that among other seized items were 53 units of helicopter drones and   60 units of warrior drones.

The seizures recorded between January and April this year are part of the anti-smuggling efforts of the Service in keeping with  Section 246 of the Nigeria Customs Service Act 2023 and in exercise of the powers conferred on it.

The anti-smuggling  operations, Adeniyi  said,  yielded a total of eleven 11  seizures comprising five  units of 40ft containers, two  units of 20ft containers, four  additional seizures of loosely concealed contraband items.  Among the seizures were sexual enhancement medications, a development that the Customs boss described as a disturbing trend   since unregulated sexual performance drugs can “pose serious health risks, including potential cardiovascular complications and harmful drug interactions when used without proper medical supervision.”

Continuing, Adeniyi said,  “We have observed a sophisticated pattern of mis-declaration where importers deliberately classify pharmaceuticals as general merchandise or cosmetics. Container MRSU 3041714 declared sildenafil products as omeprazole capsules, while TCKU 6930113 concealed skin creams as cosmetic powder. This demonstrates calculated attempts to evade regulatory scrutiny.”

On the issue of diversification of contraband portfolio, Adeniyi   said, “the seizures reveal importers are diversifying their contraband portfolios—combining pharmaceuticals, food items, and controlled technology in systematic shipments. This suggests the emergence of organized networks with sophisticated logistics capabilities rather than isolated smuggling attempts.”

Speaking further, the CGC said,   “analysis reveals a pattern in the selection of countries of origin, with many consignments originating from jurisdictions with less stringent pharmaceutical export controls. This indicates deliberate exploitation of regulatory gaps in the international supply chain.

 “The significant number of drone seizures (113 units across two incidents) without proper end-user certificates represents an emerging security concern beyond traditional contraband. The inclusion of communication devices suggests potential applications beyond recreational use.

“Between ₦140-145 million per 40ft container indicates a standardized commercial operation with established pricing structures, suggesting these are not opportunistic shipments but rather systematic business operations.

“Service has documented a concerning trend of increasing sophistication in smuggling techniques, which necessitates corresponding advancement in our enforcement methodologies”. He warned that the Service   shall deploy all resources at our disposal to ensure that Nigeria’s borders remain secure against the importation of items prejudicial to national security, economic prosperity, and public health”, he said.

The customs boss solicited the continued cooperation of all stakeholders in ensuring compliance with extant import guidelines. “We urge members of the public to utilize our confidential channels for reporting suspicious shipments or import activities. Our collective vigilance remains the most effective deterrent against transnational criminal networks attempting to compromise our borders”, he said.

Commendation

With the glaring performance in terms of revenue generation and seizures, the   Customs boss and stakeholders have been full of commendation for the Apapa Customs Area Controller, Olomu and his officers. Adeniyi had during the aforementioned press conference expressed his delight.

“I hereby convey formal commendation to all officers and men of the Apapa Port Command who, through their vigilance, professionalism, and dedication to duty, successfully executed these interceptions. “Their actions are exemplary the core values of the Service as articulated in our Code of Conduct: integrity, professionalism, and patriotism.”

He re-emphasized that the Service shall maintain an uncompromising stance on enforcement of import regulations. “We hereby serve notice to all importers, exporters, agents, and other stakeholders within the international trade environment that our intelligence network, technological capabilities, and inter-agency collaborations have been significantly enhanced to detect and intercept prohibited items regardless of concealment methods or documentation subterfuge.”

In its reaction to the seizures recorded at Apapa, the Customs Consultative Committee (CCC) equally commended the Customs  for excellent performance in enforcing import regulations and revenue generation under  the National Strategic Economic Development Plan (NSEDP).

The   Secretary of CCC, Fwdr Eugene Nweke Rff, in a press statement   said it has been an exceptional performance on the part of customs leadership. According to him, the    achievements in anti-smuggling operations   have saved the country from consumption of unregistered pharmaceuticals and expired margarines.

The statement reads, “The CCC acknowledges the NCS’s achievements in intercepting prohibited and restricted imports, including unregistered pharmaceuticals and expired margarines, at the Apapa Port Command. The seizure of eleven containers with a combined Duty Paid Value (DPV) of ₦921,021,213 is a testament to the service’s commitment to national security and economic growth.

“The CCC appreciates the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, and other officials for their vision and commitment to excellence. Their leadership has been instrumental in driving the service’s performance and ensuring the effective implementation of the NSEDP”.

In the same vein, Admiral Superintendent of Naval Dockyard in Lagos,  Rear Admiral Ibrahim Shehu  applauded Olomu and his team of customs officers   for  efficient ports operations. Particularly, Shehu commended the NCS for ensuring a hitch free cargo movement of naval consignments which passed through the seaport.

Speaking during a familiarization visit to the Customs Command, he described the trade facilitation feats of the Service as impressive.  He appreciated the Customs collaboration each time the    dockyard takes delivery of its imported items. He simply described the Customs Command   team as   fantastic, and called for   strengthening of the existing relationship between both agencies.

On how the  Apapa Customs Command has been able to collect staggering revenue in the past few months in addition to the massive seizures, the Controller, Dr. Babatunde Olomu revealed that  his strategy has been to get all stakeholders to comply with  trade regulations. Olomu said this is achieved through collaboration with the stakeholders at all levels. He pointed out that the successes of compliance, revenue collection and anti-smuggling were as a result of “collaborations where intelligence is gathered, processed and deployed for national economic interest and security”.

Olomu said the Command has been neck deep in its modernization agenda, particularly in the area of enforcing the Unified Customs Management System (B’Odogwu). He disclosed that between January to date , the Command has done well in revenue and  several seizures.

Part of the   strategies adopted by the Command to achieve what has been seen as a success story include regular stakeholders engagement which  contributes  in checking trade malpractices. The Command speaks strongly against those who try to cut   corners because of the obvious consequences. Olomu believes that by putting a torchlight on the issue of cutting of corners at the ports involving importers, customs agents and even some unscrupulous officers, revenue leakages will be reduced.  The Command also encourages swift handling of import documents so that they are   signed out immediately. As part of the standing obligations in the para-military agency, the command warns  officers against complicity with importers to commit fraudulent practices because of the obvious consequences.

With seven months to go, Olomu is full of   optimism that the Command will meet its revenue target of N2.7trillion for the year, noting that whereas the Command collected ₦2.3trillion for last year, and already close to N1trillion as at the end of April, the differential cannot be too hard to achieve, all things being equal, he declared.