- Freight forwarding agents have advised against the merger of NCS, NIMASA, and FIRS into NRS, warning of potential administrative catastrophe.
- Clearing agents expressed concerns about corruption and bottlenecks that may arise from the merger, impacting ease of doing business and agreements like ACFTA.
- Experts urged thorough analysis of economic policies, stakeholder input, and consideration of IMF report before implementing the proposed merger and reform agenda.
Freight forwarding agents have advised the Federal Government against the attempted merger of the Nigeria Customs Service (NCS), the Nigeria Maritime Administration and Safety Agency (NIMASA), and the Federal Inland Revenue Service into the Nigerian Revenue Service (NRS).
The clearing agents warned that this may lead to an administrative catastrophe for the government if not well-thought-out.
Corruption and Bottlenecks: Clearing Agents’ Warning
Speaking under the auspices of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), the clearing agents declared that the merger of the three government agencies may encourage corruption and create unnecessary bottlenecks in the system.
President of APFFLON, Otunba Frank Ogunojemite, emphasized that the merger could impede ease of doing business and have negative implications for the African Continental Free Trade Agreement (ACFTA) and the single window policy of the Nigeria Customs.
Expert Consultation and Consideration of Inputs
Ogunojemite advised the Federal Government to assemble a team of experts to thoroughly analyze the economic policies and their potential benefits for the country before implementation.
He urged the committee to seek stakeholders’ input and consider the 2019 International Monetary Fund (IMF) report on the economy and Nigerian ports reforms.
The Proposed Merger and Reform Agenda
President Bola Tinubu’s Policy Advisory Council proposed the merger of customs, NIMSAA, and FIRS into the Nigerian Revenue Service. According to the council, this merger would enable an efficient collection of all direct and indirect taxes, as well as levies on behalf of the Federal Government.
The policy is expected to be aided by the passage of an Emergency Economic Reform Bill, granting the president special powers to drive the economic reform agenda and support sustainable and inclusive economic growth. The Advisory Council also recommended declaring a state of emergency on revenue generation in the country.
Translation: “We’ve settled our people in NCS already. Please don’t dismantle NCS and then make us have to settle a whole new cast of characters within a new merged agency in order to keep our products flowing through the ports.”
However, in my opinion, the clearing agents are missing a valuable chance by opposing this much-needed change. They could use this opportunity to actively collaborate with the government and highlight all the obstacles they face due to corruption and administrative red tape. They could advocate for comprehensive reform.
In my view, sticking to the current situation instead of seeking potential improvements to Nigeria’s ports is not a wise approach.
You’re not being fair, & in a way contradictory. The article says the clearing agents are advising the new administration to set up a team of experts to thorougly analyse the Presidential Advisory council’s recommendation, including seeking their (clearing agents) & other stakeholders’ input (as per your suggestion), as well as to consider a 2019 IMF report on ports reform (can’t imagine the IMF would be a sucker for this interest group).
I’m instinctively pro lean institutions & all, but even i was taken aback by this suggestion to merge these 3 agencies, wondering if it wouldn’t lead to bottlenecks (perhaps merging nimasa & ncs might make sense, whilst FIRS remains separate). Even advanced nations have differing approaches, perhaps as it suits their own unique socioeconomic situations, so i would encourage all stakeholders engagement
Customs and FIRS could be merged but NIMASA should not be merged with those two. The reason is that NIMASA has both a statutory role locally and internationally to play in respect of international protocols with the International Maritime Organization which cannot be ceded to any other agency. Infact the primary role of NIMASA is not revenue generation but rather safety of maritime activities, ease of navigation, and development of capacity in cabotage matters.
On second thought, you might be more astute with your suggestion. Some advanced nations have a merged customs & internal revenue agency. Never previously heard of a maritime agency merged with the internal revenue agency
Ideally customs and firs have their great role in all the processes, deeply more than NIMASA.
I suggest both can be merged successfully.