A perfect storm of worsening smuggling activity, massive revenue leakages at major ports and a high-level plot to install a favoured set of junior officers into the top leadership of the Nigeria Customs Service is threatening to plunge the agency into its deepest crisis in decades, multiple authoritative sources have revealed to our correspondent.
The developments come just weeks after President Bola Tinubu approved a six-month extension for the current Comptroller-General of Customs, Bashir Adewale Adeniyi.
In a video obtained by SaharaReporters, hundreds of smugglers were seen being guarded by some customs officers, giving orders to move at night with different contraband products.
Intelligence familiar with operations at the nation’s borders and ports told SaharaReporters of an agency in freefall, with smuggling activities skyrocketing along land border corridors even as customs revenue at major seaports continues its downward spiral.
How Smugglers Cross The Border
A top officer explained that at the Apapa, Tincan Island and PTML Commands, a particularly troubling practice has emerged, with new vehicles being cleared as old ones through the manipulation of a revenue code designated simply as “846,” a scheme that industry insiders say is costing the federal government billions of naira in lost revenue.
The code, originally introduced by the service to create an automated platform for processing vehicles with non-standard Vehicle Identification Numbers, was meant to reduce human interface and curb extortion but it has instead become a conduit for large-scale corruption with officers allegedly approving grossly undervalued assessments that allow importers to pay what sources described as “peanut values” on high-duty luxury vehicles and heavy-duty trucks.
The extent of the manipulation is such that licensed customs agents had previously raised alarms about the misuse of the 846 code, noting that its application “must be approved and authorised by the direct trade input’s valuation unit,” which places the responsibility squarely on senior officers who are supposed to be guardians of the nation’s revenue.
However, despite previous admissions by the Tincan Island Customs Area Controller in 2022 that over 7,000 declarations had been routed through the 846 code in what he termed a “misuse” of the system, the practice has not only continued but appears to have intensified with officers pointing to a deliberate weakening of oversight mechanisms that has emboldened officers to collude with importers in defrauding the government.
The situation at the land borders is even more alarming, with intelligence reports indicating that despite widespread media coverage and public outcry over previous revelations of massive smuggling activities along the Seme border and the Ogun State border axis, the volume of contraband flowing into the country has actually increased, a development that officers within the agency attribute directly to the connivance of senior leadership officers.
“The number of foreign cars and trucks loaded with prohibited goods being smuggled in is quite high, especially at Seme, Idiroko, Ilaro, and Ipokia in Ogun State, and the Igbeti-Kishi border axis in Oyo State, bordering the Republic of Benin,” a source said.
Another top-ranking officer explained that last Wednesday and Thursday nights alone, many vehicles, including heavy-duty trucks, were reportedly brought into the country through these border areas, loaded with prohibited items and concealed under bags of rice to mask the true nature of the cargo.
The scale of the operation, which the officer said involved coordinated efforts across multiple border posts, points to what critics describe as a systemic breakdown of enforcement protocols.
Bribes, Payments And The Chain Of Command
Investigations reveal a well-established bribery network operating at various levels of the service.
According to the officers who witnessed the scheme, the 846-code manipulation scheme involves direct payments to customs officers who approve the undervaluation.
One importer had previously alleged that the Tincan Island Command collected N500,000 from agents to facilitate short payments on the 846 code, with bribes allegedly being channeled through specific bank accounts.
The bribery network extends to land borders where sources indicate that bribes are collected per truck or vehicle allowed to cross. While specific amounts vary, intelligence suggests that payments are negotiated based on the type and volume of contraband, with rates ranging from hundreds of thousands to millions of naira per convoy.
The orders for these operations come from senior officers posted to key smuggling corridors to facilitate the illegal trade.
Goods Being Smuggled
The smuggling network is not limited to a single commodity. Intelligence indicates a diverse range of contraband flowing through Nigeria’s porous borders. Smuggled bags of rice are commonly used to conceal other prohibited items and are themselves a major target for smugglers seeking to bypass import restrictions.
Petroleum products are frequently smuggled across borders to take advantage of subsidy differentials and price disparities between Nigeria and neighbouring countries.
Frozen poultry products continue to be smuggled despite longstanding bans, threatening local producers and public health.
Both new and used vehicles are smuggled through land borders, with the federal government’s 2017 ban on vehicle importation through land borders having failed to achieve its objectives.
While specific details remain classified, intelligence sources indicate that the smuggling networks facilitating rice, fuel and vehicle smuggling are also being used to traffic illicit goods, including arms and narcotics.
Who Benefits Financially?
The financial beneficiaries of this organized criminal enterprise form a complex web involving multiple actors. According to sources, officers who approve undervaluation through the 846 code and those who facilitate border crossings receive direct cash payments.
The alleged collection of N500,000 per vehicle clearance through the 846 code represents a significant revenue stream for corrupt officers.
Freight forwarders and clearing agents, who facilitate the illegal clearings earn fees from importers, passing a portion to customs officers while retaining substantial profits.
Smugglers and importers who evade legitimate duties through the 846 code or land border smuggling enjoy significantly reduced costs, translating to higher profit margins or the ability to undercut legitimate competitors.
In 2023, a licensed customs agent, Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria alleged that some clearing agents were colluding with customs releasing officers to short-change the government of revenue generated from imported vehicles.
Ogunojemite, advised those involved in the alleged “value cut” on Extended Procedure Code (EPC) 846 transactions to pay the outstanding revenue differences. He also condemned customs officers who compromised their responsibilities by accepting bribes from clearing agents to facilitate the release of vehicles.
Ogunojemite stressed that corrupt public officials should not be treated with leniency if the fight against corruption is to be taken seriously. He argued that many public officials and political appointees had enriched themselves at the expense of the nation by depriving the government of legitimate revenue and exploiting the public trust.
He further called for the prosecution of corrupt officials, insisting that anyone found guilty should face appropriate legal sanctions, including imprisonment. According to him, Nigerians should no longer view public office as an avenue for personal enrichment and abuse of the system.
Cost To Nigeria
The financial impact of these operations on the Nigerian economy is staggering. The Nigeria Customs Service disclosed that Import Duty Exemption Certificate approvals reached about N34 trillion in 2025, representing 61.8 percent of the country’s N54.99 trillion budget for that fiscal year.
While some of these exemptions are legitimate policy interventions, economists have expressed alarm, calling for a thorough investigation, warning that the revenue loss could widen Nigeria’s fiscal challenges and increase borrowing.
Customs’ Response
While reacting to the allegations of smuggling and revenue leakages along the Seme and Ogun border corridors, the spokesperson for the Nigeria Customs Service (NCS), Abdullahi Maiwada, dismissed the claims as false and misleading.
He said the allegation of a “surge” in smuggling or the unchecked movement of many vehicles and trucks through the Seme and Ogun State land borders is factually incorrect and does not reflect the operational reality on the ground.
He said, “Our responsibility is to reduce smuggling to the barest minimum, not to claim that it can be completely eradicated. The frequency and volume of assorted seizures recorded regularly along these corridors clearly dispel these allegations. These interceptions are routinely displayed during media briefings hosted by the respective Area Controllers.
“The Nigeria Customs Service remains committed to enforcing Federal Government policies on restrictions and prohibitions while facilitating legitimate trade.”
Speaking on vehicle valuation protocols and the application of the “846” code, Maiwada described the allegation that the code is being systematically manipulated to clear new vehicles as used ones at the Apapa, Tin Can Island, and PTML Area Commands as a misrepresentation of an automated risk management system.
Explaining the purpose of the “846” code, he said: “The 846 code is an established digital valuation code within the Customs portal, specifically designated for vehicles with non-standard or non-compliant Vehicle Identification Numbers (VINs) that cannot be automatically assessed through the standard VIN valuation databases. These include specialized heavy equipment, classic models, customized vehicles, and vintage builds.”
Maiwada also addressed allegations concerning succession planning and officer progression within the Service, describing the claims as baseless.
He added that allegations that the current leadership is attempting to influence succession by systematically favouring specific groups of officers are entirely without merit.
(SaharaReporters)