National Council of Managing Directors of Licensed Customs Agents Protests Central Bank’s New Price Verification System

Members of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) have expressed their strong opposition to the recently introduced price verification system at Nigeria’s ports by the Central Bank of Nigeria (CBN).

They argue that this new system is in violation of the Customs and Excise Management (Amendment) Act 20 of 2003 and the Nigeria Customs Service Act of 2023, which govern the valuation of imports.

In a letter dated Wednesday and signed by Mr. Lucky Amiwero, the founder of NCMDLCA, addressed to several key government officials, including the President, the Secretary to the Government of the Federation, the Chairman of the Senate Committee on Customs and Excise, the Chairman of the House Committee on Finance, the acting Governor of the CBN, the Ministry of Justice, and the Attorney General of the Federation, among others, the group urged President Bola Tinubu to disregard the circular issued by the apex bank regarding the introduction of the price verification system.

NCMDLCA went on to explain that the process of valuing goods in Nigeria is explicitly outlined in the Customs and Excise Management Act 20 of 2003 and the Nigeria Customs Service Act 35 of 2023.

These laws grant authority over the treatment, processes, procedures, and determination of the valuation of imported goods based on the transaction value method.

The letter further stated, “We hereby bring to the attention of the Federal Government of Nigeria that the Central Bank circular TED/FEM/PUB/FPC/001/008 of 17th August 2023, Go-Live of the Central Bank of Nigeria Verification System Portal, contravenes the following laws of valuation of imported goods: Customs and Excise Management (Amendment) Act 20 of 2003 and Nigeria Customs Service Act 2023.”

Amiwero also said that the Customs and Excise Management Act (CEMA) is the sole legal framework for determining the value of imported goods.

He argued that the additional requirement of price verification by the CBN duplicates the functions of the Customs and would create bottlenecks and conflicts when determining the value of imported goods.

According to Amiwero, the valuation process is clearly defined in the existing laws governing the valuation of imported goods.

He expressed concerns that the implementation of the CBN’s price verification system, if allowed to proceed, would result in redundancy and cumbersome procedures within the import and export system, especially for individuals not well-versed in valuation and import-export procedures.

This protest by the National Council of Managing Directors of Licensed Customs Agents sheds light on the growing concerns surrounding the Central Bank’s new price verification system and its potential impact on the country’s import and export processes.

The issue is likely to spark further discussions and debates among relevant stakeholders and government authorities.