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Committee Makes Recommendations for Smooth FTZ Operations

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By Adedapo Adesanya

The tripartite of the Acting Comptroller-General of Customs, the Managing Director/CEO of the Nigeria Export Processing Zones Authority (NEPZA) and the Managing Director/CEO of the Oil and Gas Free Zone Authority (OGFZA) have received a six-point recommendation report on the Free Trade Zones Operational Remodelling.

The committee was constituted on July 28 when Mr Adesoji Adesugba, MD/CEO of NEPZA, his counterpart, Mr Tijjani Kaura MFR MD/CEO OGFZA, and Mr Toyin Elegbede, Exeutive-Secretary of the Nigeria Economic Zones Association (NEZA) visited the Acting Customs chief, Mr Bashir Adewale Adeniyi to demand the streamlining of customs’ operations within the free zones.

The report was presented by Mr Toyin Elegbede, Chairman of the committee, who expressed delight in the confidence reposed on the members of the committee to undertake the onerous assignment.

He stated that the prompt implementation of the committee’s report would help reposition the scheme for a greater impact on the economy.

“While I thank you, the Acting Comptroller-General of Customs, the Managing Directors/CEOs of NEPZA and OGFZA, on behalf of other members of the committee for the confidence reposed on us to carry out this assignment, please permit me to present the Report of the committee for your consideration,’’ Mr Elegbede said.

The recommendations included the stoppage of irregular invitations of Free Zone Enterprises to the customs headquarters on procedural matters that should be handled by the Area Controllers, including approval for local purchases, rents and hires.

The committee also prescribed the immediate integration of all Free Zone Enterprises into the IM5 (5900) customs operations portal and to redesign it to resolve the VAT implication for sales to the Customs territory.

The recommendation further requested the immediate formulation of SOPs and Procedure Codes for both Intra and Inter Zone Sales, Imports of vehicles, capital goods, spare parts, equipment, furniture, and fixtures destined for consumption within the free zone.

Furthermore, the committee requested the service to allow the exports of finished and processed goods containing 100 per cent local raw materials with minimum stipulated VAT either mentioned in the Import Prohibition list of customs or in the 44 restricted items of the Central Bank of Nigeria (CBN) FX ban list.

In addition, the committee recommended the immediate creation of Procedure Codes that would kickstart the implementation of the Federal Ministry of Finance Circular No. F182079 dated December 22, 2022, and letter Ref. No. HMFBNP/NCS/LPG/10/2022 dated October 4, 2022, respectively, on some specific incentives.

The report listed the incentives to include a 75 per cent Duty Rebate for approved products in Oil and Gas gas-free zones and the exemption of domestic production and sale of LPG from customs duty and VAT.

The rest of the incentives are to comply with regulatory procedures provided in OGFZA and NEPZA Regulations with respect to inspection of free zones containers without the knowledge of the Authorities, delay in the inspection of cargo, stoppage of cargo in transit, and raising queries on importation of same as well as posting of customs officers to the free zones without the knowledge of the two Authorities.

Finally, the committee recommended expeditious harmonization of all the areas of conflict contained in the legal frameworks of NCS, NEPZA, and OGFZA, respectively.

The customs boss promised to immediately adopt those recommendations that fell within the operational policy of the service for implementation.

“We must do what is necessary to boost the economy. I was worried to hear that some of our actions had inhibited the free flow of revenues from the scheme.

“We were meant to have a coordinated collaboration and cooperation to ensure the country obtains significant benefits from the free zone scheme. All hands must now be on deck to make that happen.

“In demonstrating our commitment to streamline our policy and operations for effective management of the free zones, I wish to suggest that this committee is converted to become the Implementation Committee that will midwife the implementation of these recommendations. I wish to thank all of you for a job well done,’’ the Acting CGC said.

On their parts, Mr Adesugba and Mr Kaura applauded the genuine commitment of the new customs boss toward addressing all the listed conflict areas, noting that the two regulatory bodies and the entire free trade zones’ stakeholders through NEZA would scale up collaboration with the service to make the scheme more attractive.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Customs, NMDPRA Strengthen Interagency Efforts Against Fuel Diversion

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By Adedapo Adesanya

The Nigeria Customs Service (NCS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are strengthening their collaboration to combat the diversion of petroleum products intended for domestic use and to safeguard Nigeria’s energy security.

This renewed partnership was highlighted during a meeting between Comptroller General of Customs, Mr Adewale Adeniyi and the NMDPRA Executive Director of Distribution Systems, Storage and Retailing Infrastructure, Mr Ogbugo Ukoha, at Customs House, Maitama, Abuja.

During the engagement, Mr Adeniyi reaffirmed the service’s commitment to strengthening inter-agency cooperation, particularly in safeguarding Nigeria’s domestic energy security and ensuring that petroleum products meant for local consumption are not diverted to neighbouring countries.

He noted that collaboration between both agencies had already produced measurable results, especially through Operation Whirlwind, which he described as a model for intelligence sharing, joint enforcement and coordinated field operations.

He said the Nigeria Customs Service remains fully aligned with ongoing reforms in the petroleum regulatory space and will continue to provide technical input, operational feedback and border management expertise to support the implementation of new guidelines being developed by the NMDPRA.

He commended the Authority for its efforts to harmonise legacy processes with the Petroleum Industry Act, stressing that clear and efficient export point procedures are essential as Nigeria moves from being a net importer to an emerging exporter of petroleum products.

“We welcome every initiative that strengthens energy security and ensures that the gains made in reducing cross border diversion are not reversed. Our shared responsibility is to protect national interest, support legitimate trade and maintain a transparent system that stakeholders can rely on. We will continue to work closely with sister agencies to achieve these outcomes,” he stated.

In his remarks, the Executive Director, Mr Ukoha, said the NMDPRA enjoys a longstanding and productive working relationship with the Nigeria Customs Service, noting that Operation Whirlwind remained the high point of that collaboration.

He explained that both agencies deployed personnel, exchanged intelligence and jointly monitored petroleum products in border corridors, leading to a marked reduction in cross border diversion.

Ukoha said the purpose of the visit was to brief the CGC on newly developed guidelines for designating export points for petroleum products as Nigeria’s refining capacity expands.

He said the NMDPRA is engaging key institutions, including Customs, the Central Bank of Nigeria (CBN), the Federal Ministry of Industry, Trade and Investment, and the Nigerian Navy, to ensure the guidelines reflect operational realities before implementation.

The NMDPRA executive recalled several field operations and strategic engagements with the Customs leadership, including the joint launch of Operation Whirlwind in Yola, where both agencies reinforced their commitment to curbing diversion and securing the domestic supply chain.

He added that while enforcement had played a major role in reducing irregular movements of petroleum products, the removal of fuel subsidy had significantly reduced the economic incentive for cross border smuggling.

According to him, the authority will continue to work closely with the Customs Service to sustain progress and ensure that petroleum exports are properly regulated without exposing the country to energy security risks.

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Dangote Publishes Details of Farouk Ahmed’s Swiss School Fees for Kids

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By Adedapo Adesanya

The president of Dangote Group, Mr Aliko Dangote, has published details alleging extensive foreign education expenses made by the chief executive of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, on four children in a new turn of event between the businessman and regulators.

Speaking on Sunday, the business mogul alleged that Mr Ahmed paid about $5 million for the secondary school education of his four children in Switzerland, and wondered how the government official could afford to pay such amount of money when there are several students in the home state of Mr Ahmed, Sokoto State. He threatened to published more details.

In the latest illustrated claims, Mr Dangote alleged that Mr Ahmed’s children attended secondary schools in Switzerland for about six years each. He listed the schools as Montreux School, Aiglon College, Institut Le Rosey and La Garenne International School. He named the children of Mr Ahmed as Faisal Farouk, Farouk Jr., Ashraf Farouk, and Farhana Farouk.

Mr Dangote alleged that the total cost of secondary education for the four children — covering tuition, upkeep, travel and related expenses exceeded $5 million.

He further claimed that an additional $2 million was spent on university education for the four children over a four-year period.

Specific figures were also cited for 2025, with Mr Dangote alleging that about $210,000 was spent on one child’s Master of Business Administration programme at Harvard University.

The breakdown reportedly includes $150,000 for tuition and $60,000 for accommodation, travel and other incidentals.

The claims have not been independently verified by Business Post at the time of filing this report but Mr Dangote revealed these details in an advertorial in most of the national newspaper on Tuesday.

Also, Mr Ahmed has yet to publicly respond to the allegations.

Mr Dangote earlier called on the authorities to institute a full scale investigation into the activities of the NMDPRA boss, with the outcome made public.

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Supreme Court Empowers Tinubu to Declare Emergency Rule, Suspend Elected Officials

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By Adedapo Adesanya

The Supreme Court has upheld the power of the President to declare a state of emergency in any state to prevent a breakdown of law and order or degeneration into a state of chaos or anarchy.

In a split decision of six-to-one, the apex court held that the President, during a state of emergency, can suspend elected officials, but within a limited period.

In the lead majority judgment, Justice Mohammed Idris held that Section 305 of the Constitution empowers the President to deploy extraordinary measures to restore normalcy where emergency rule is declared.

Justice Mohammed Idris noted Section 305 was not specific on the nature of the extraordinary measures, thereby granting the President the discretion on how to go about it.

The judgment was on the suit filed by Adamawa State and 10 other Peoples Democratic Party-led states challenging the propriety of the state of emergency declared by President Bola Tinubu in Rivers State, during which elected state officials, including Governor Siminalayi Fubara, were suspended for six months.

On March 18, President Tinubu declared a state of emergency in Rivers State following a reported attack on crude oil pipelines; and in the same breath, suspended the sitting governor and his deputy, Mrs Ngozi Odu. He then put in place a sole administrator.

This was challenged at the apex court by some states.

Justice Idris, in the earlier part of the judgment, upheld the preliminary objections raised by the two defendants against the competence of the suit.

In upholding the objections raised by the Attorney General of the Federation (AGF) and the National Assembly (the defendants), Justice Idris held that the plaintiffs (the 11 PDP states) failed to establish any cause of action capable of activating the original jurisdiction of the apex court.

He struck out the suit for want of jurisdiction, proceeded to also determine the case on the merits, and dismissed it.

However, Justice Obande Ogbuinya dissented and held that the case succeeded in part.

Among others, Justice Ogbuinya held that although the President could declare a state of emergency, he cannot use such powers as a tool to suspend elected state officials, including governors, deputy governors, and members of parliament.

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