‘PMS Smuggling Is National Security Threat’ – Adeniyi

BY EGUONO ODJEGBA

The Comptroller General of Customs (CGC), Adewale Adeniyi MFR has reiterated the determination of the Nigeria Customs Service (NCS) to combat the scourge of cross border smuggling and criminal diversions of petroleum products to destinations other than were indicated in the invoice documents, noting that the smuggling of premium motor spirit (PMS) known in local parlance as petrol, is potential threat to national security.

The CGC while giving account of his first one year in office Wednesday in his office said the NCS will continue to engage stakeholders on the negative consequence of fuel smuggling on the economy and national security; even as he reaffirm the commitment of the Customs to make the fight against fuel smuggling a top priority.

Giving an appraisal of his one year in office, Adeniyi said one of the NCS leading policy measures implemented within the period under review, and under the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun was the transition from the repealed Customs and Excise Act of 2004 to the newly signed Nigeria Customs Service Act of 2023.

“This new act strengthens the modernization of NCS operations, compliance, and enforcement, with features that promote innovation within the Service. This included extensive sensitization efforts for all stakeholders involved in the customs process, ensuring they were informed about the new laws and had a clear understanding of the implications of the features introduced in the NCS Act of 2023.”

He said “The new act also forms the basis for several trade facilitation measures currently being pursued by NCS. These measures include:

2. The recent transition from the Fast Track 2.0 to the Authorized Economic Operators (AEO) concept. Participants in the AEO program stand to benefit from expedited customs clearance processes, reduced inspections, priority treatment, and enhanced predictability in customs clearance. This transition has advanced beyond the critical stage of stakeholder engagement, with seven beneficiaries, including importers, exporters, logistics companies, customs brokers, and small and medium-sized enterprises (SMEs), now set to be involved in the pilot stage.
3. The Advanced Ruling system represents a notable stride in aligning NCS operations with global best practices, in line with the recommendations of the World Customs Organisation (WCO) and the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA). This initiative is now at an advanced stage of implementation.
4. In February 2024, NCS launched an extensive Time Release Study (TRS) with the support of the Honourable Minister of Finance, and the buy-in of the Minister of Industry, Trade, and Investment, as well as the Minister of the Marine and Blue Economy. The objective of this endeavour is to identify bottlenecks in the clearance process to ensure that adequate measures are taken to resolve these issues.
5. another significant measure to eliminate inefficiencies in Nigeria’s trading environment and reemphasize the pursuit of trade facilitation by NCS was the dissolution of ad-hoc enforcement teams that constituted multiple layers of checkpoints and hindered trade.
6. In response to the need for dedicated terminals to process export goods, the NCS command at the Port of Lilypond was designated to handle export transactions.

According to him, other targeted measures to facilitate trade and enhance revenue collection by the Service alongside critical stakeholders include the implementation of the Presidential approval to decongest the ports area, enforcement of 48-hour clearance of goods, a 90-day window allowing owners of uncustomed vehicles to pay appropriate duties on previously imported vehicles; among other measures that are currently in force.

Speaking on measures in the past one year to  implement measures aimed at addressing national security concerns, Adeniyi said the Federal Operating Units of the NCS has been strengthened “to pursue, intercept, arrest, and dismantle smuggling networks.

“The Service has also enhanced its reliance on intelligence sharing and collaborations both nationally and internationally to tackle security-related issues, particularly in the illicit trade of arms, ammunition, drugs, and wildlife.

“Recently, there has been a renewed focus on dismantling powerful cartels in the distribution of Premium Motor Spirit (PMS). This has led to ongoing collaboration with the Office of the National Security Adviser (ONSA) and the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in the NCS-led operation “Whirlwind.”

“More recently, PMS smuggling has emerged as a potential national security threat. Beyond the funding it provides for smugglers, the deprivation of Nigerians’ access to PMS can cause significant disruptions and exacerbate the hardships faced by many” adding:

“The NCS is making concerted efforts to engage stakeholders and communicate effectively with the citizens of Nigeria. We want to reassure everyone that all measures are in place to improve their well-being and alleviate any hardships they may be facing. Our ultimate goal is to contribute to a safer, more prosperous Nigeria for all.”