Customs agents threaten service withdrawal over proposed license fee hike

...demand current rates, 3-5 years license renewal

Licensed customs agents have threatened to withdraw their services at the nation’s ports if the proposed increase in license fees by the Nigeria Customs Service is implemented.

The agents, who spoke at a meeting in Lagos on Thursday, demanded that the current rates be maintained and license renewal by customs be pegged between three to five years.

The meeting, organized by the Association of Nigerian Licensed Customs Agents (ANLCA) and led by its National President, Emenike Nwokeoji, brought together representatives from various licensed customs associations, industry groups including the Lagos Chamber of Commerce and Industry (LCCI), to present a united front against the proposed hike.

According to the proposed changes, the fee for a new license would skyrocket from N515,000 to N10 million, while the annual renewal fee would increase from N215,000 to N4 million.

Speaking at the meeting, Emenike warned that if the hike is implemented, the cost will inevitably be passed on to customs agents and consumers through higher prices for goods, further impoverishing Nigerians.

Deputy Chairman, Clearing and Forwarding Trade Group at the Lagos Chamber of Commerce and Industry (LCCI), Dr. Ikenna Nwosu, stated that such an exorbitant increase proves the NCS’s objective is to generate revenue rather than to simply issue a permit.

“All over the world, license fee is not a revenue generation base, but with the increase proposed by Customs, it is clear that it is a revenue generation base,” he said.

The agents who challenged the NCS’s annual renewal policy, argued that it is out of sync with what obtains in other countries and the fees among the highest in the world.

They cited countries like Canada, the US, and Singapore, as well as West African countries where licenses are renewed every three to ten years, with some being permanent.

One of the licensed customs agent and retired Comptroller of Customs, Lewis Ogunojemite called the 2,000% increase for a new license illogical and described it as a ploy by Customs to push agents out of job and hand them over to money bags.

His words, “We should not give room to any negotiation. When we engage them, it is to fall inside their trap. This is an attempt for customs to take over the job when they leave office. ”

On his part, Chairman of the ANLCA Board of Trustees, Taiwo Mustapha stressed the need for a unified front among agents against the hike.

He said the proposed fee hike has brought all customs agents together, and any decision made at the meeting would be binding on all.

He said, “The CG came and told us these are proposals but coming from our experience in the past, when we were moving from NICIS 11 to B’Odogwu, were we consulted? No.

“When a good number of various decisions were taken, we were not consulted. And I think they knew, that perhaps, because this one has to do with us directly, in terms of what will be coming out of us, they decided to keep it as a cart before us like, it is a proposal.

“But I believe that certain decisions have been taken on this issue. However, if after engaging them they refuse to listen to us, we will down tool.”

Mustapha, however, urged agents to improve their professionalism, noting that their conduct has given Customs a reason to “throw everything at us.”

Representatives from the National Council of Managing Directors of Licensed Customs Agents, including Ben Ndee and Frank Ukwu also echoed the sentiment that there should be no negotiation and that the old rates must be maintained.

They emphasized that customs services globally are known for trade facilitation, not revenue generation.

The meeting concluded with a resolution that if the NCS refuses to listen to their demands, the agents will down tool and bring port operations to a standstill.