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Daniel Adaji
The United States has declared the Nigeria Customs Service (NCS) a corrupt institution, citing entrenched inefficiencies and malpractice that pose major barriers to trade and investment.
This declaration was made in the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, obtained by Pointblank News on Monday.
The report underscores systemic corruption within Nigeria’s customs operations, stating bluntly that “the Nigeria Customs Service’s practices continue to present major obstacles to trade.”
It adds that “importers report inconsistent application of customs regulations; lengthy clearance procedures, often due to outdated manual processing systems; and corruption.”
The scathing assessment reveals that corruption at Nigeria’s ports leads to significant economic losses, particularly for perishable goods.
“These factors sometimes contribute to product deterioration and result in significant losses for importers of perishable goods,” the report noted.
Despite efforts to automate processes through a $3.1bn customs modernization project approved in 2020, the report highlights that “many basic customs procedures are still paper-based and require an unreasonably long time to complete.”
The modernization initiative, meant to digitize operations within 36 months via a public-private partnership, has suffered delays and is now entangled in litigation.
In addition to corruption, the report points to inconsistent regulatory practices, with different agencies frequently clashing over interpretations of trade rules, causing “delays” and slowing the “movement of goods through Nigerian ports.”
The United States also criticized Nigeria’s continued use of import bans and supplementary taxes that raise the effective cost of importing goods, noting that the customs agency bans 25 product categories and levies charges exceeding the ECOWAS limit of 70 per cent on 17 tariff lines.
Furthermore, Nigeria’s lack of transparency in government procurement was also flagged.
The report states that “U.S. companies have expressed concerns about corruption and a lack of transparency in procurement processes in Nigeria,” adding that “foreign government-subsidized financing arrangements appear in some cases to be a crucial factor in the award of government procurements.”
On regulatory transparency, the NTE report laments that “Nigeria has not consistently notified draft technical regulations to the WTO Committee on Technical Barriers to Trade,” and that enforcement of intellectual property rights remains inadequate due to corruption and lack of resources.
The 2025 report also highlights broader systemic challenges: “Corruption and lack of transparency in tender processes are of great concern to U.S. companies. U.S. firms experience difficulties in day-to-day operations as a result of inappropriate demands from officials for ‘facilitative’ payments.”
While acknowledging recent policy reforms, including the Central Bank of Nigeria’s move to unify exchange rates and lift some import restrictions, the report remains sceptical of their impact in an environment still hampered by entrenched bureaucratic inefficiencies and opaque practices.
As part of its recommendations, the U.S. urges Nigeria to make comprehensive reforms to its customs operations and procurement systems, encouraging transparent processes, accountability, and full digital integration.