Loading Now

Adopt Ghana’s Customs funding model, FG urged

Spread the love

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has called on the Federal Government to adopt Ghana’s customs financing model to improve transparency, reduce costs, and enhance trade competitiveness.

In a letter to President Bola Tinubu, signed by NCMDLCA National President, Lucky Amiwero, the group noted that Ghana Customs is funded through an allocation of three per cent of total import duty and VAT collections, with 0.4 per cent earmarked for its customs technology platform.

According to NCMDLCA, this structure—backed by the Export and Import (Amendment) Act 585 of 2000—ensures that charges are tied directly to service delivery, capped to prevent escalation, and managed in compliance with global trade standards.

“Ghana’s process is the best. It ensures accountability, prevents arbitrary cost hikes, and aligns with international best practice,” the letter read.

Concerns Over Nigeria’s Current Framework
The association criticised provisions in the Nigeria Customs Service Act 2023, including the 4% Free-on-Board levy on imports, cost-based user fees, advance ruling fees, and special service charges—warning that these multi-layered charges significantly increase the cost of doing business at Nigerian ports.

They argued that the current system inflates port costs, discourages investment, undermines Nigeria’s competitive position in regional trade, and places an additional burden on importers, manufacturers, and licensed customs agents.

Call for Review and Reform
NCMDLCA urged President Tinubu to set up a review committee to:

  • Align Nigeria’s customs funding with international best practice

  • Harmonise overlapping agency mandates

  • Simplify inspection processes

  • Reduce port costs, which they say are already the highest in West and Central Africa

“The committee should examine the NCS Act 2023 to address duplication, contradictions, and overreach of powers that can conflict with other agencies and affect clearance processes,” Amiwero stated.

Post Comment