The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has proposed a significant change to the licensing procedures for customs brokers in Nigeria. They recommend extending the validity period of broking licences issued by the Nigeria Customs Service (NCS) from one year to two years. This recommendation comes as the NCS celebrates a milestone achievement: the first issuance of a Pre-Arrival Assessment Report (PAAR) under the newly implemented B’Odogwu platform, also known as the Unified Customs Management System. This new system, designed and developed in Nigeria, replaces the previous Nigeria Integrated Customs Information System (NICIS) and aims to modernize customs operations, streamline trade documentation, and bolster inter-agency cooperation. The successful PAAR issuance follows a recent high-level meeting between the Comptroller-General of Customs and the Governor of the Central Bank of Nigeria, where both parties reiterated their commitment to facilitating smooth trade processes, optimizing revenue collection, and improving financial integration within the country.
APFFLON’s President, Frank Ogunojemite, believes that extending the licence validity period would be mutually beneficial to both licensed agents and the NCS. He highlights several key advantages, including a reduction in administrative burden, lower economic costs for agents, improved efficiency, and enhanced predictability in business operations. The current annual renewal requirement places a significant administrative burden on both businesses and the NCS, requiring substantial time and resources for paperwork, processing, and compliance verification. A two-year validity period would streamline this process, freeing up resources for both parties to focus on their core responsibilities—trade facilitation for businesses and revenue collection and border security for the NCS.
The reduced administrative burden translates directly into lower economic costs for licensed agents. The annual renewal fees, documentation costs, and the time spent on compliance procedures represent a recurring expense that could be significantly reduced with a biennial renewal cycle. This cost saving would be particularly beneficial to smaller businesses and could contribute to a more competitive and dynamic trading environment. Moreover, the extended validity period would foster greater efficiency in trade operations. Agents would spend less time navigating bureaucratic hurdles and more time focusing on facilitating the movement of goods, leading to quicker processing times and smoother supply chains.
Predictability is another crucial factor in efficient business operations, and the two-year licence validity would provide a longer horizon for planning and investment. Businesses could make more informed decisions regarding logistics and supply chain management, knowing that their licensing status is secure for a longer duration. This stability would encourage long-term planning and contribute to a more stable and predictable trading environment. With a longer validity period, businesses would have greater certainty about their operational framework, fostering confidence in investment decisions and facilitating long-term strategic planning.
Beyond the benefits to businesses, the NCS would also realize advantages from a two-year licensing cycle. The reduced administrative workload would free up resources for other critical functions, such as risk assessment and security monitoring. With more time available, the NCS could conduct more thorough risk assessments of licensed agents, potentially leading to better identification and mitigation of security risks. Furthermore, the extended validity period would enable the NCS to allocate its resources more effectively, focusing on higher-risk areas and strengthening overall border security.
Furthermore, a longer licensing period allows both the customs brokers and the NCS to establish a more stable and predictable working relationship. This stability fosters trust and cooperation, facilitating more open communication and collaborative problem-solving. A strong partnership between the NCS and licensed agents is essential for efficient trade facilitation and effective border control. The proposed two-year validity period could contribute significantly to strengthening this partnership and promoting a more harmonious and productive working environment. In conclusion, APFFLON’s proposal to extend the validity of customs broker licences from one year to two offers a multitude of benefits for both businesses and the Nigeria Customs Service. The reduced administrative burden, lower costs, increased efficiency, enhanced predictability, and the potential for improved security measures make a compelling case for this change. As Nigeria strives to modernize its customs operations and enhance its trade competitiveness, adopting this recommendation could be a significant step forward.
