The Sea Empowerment and Research Centre says the Nigeria Customs Service’s digital transformation will dismantle cartels and tackle smuggling in the country.

This was announced in a weekly bulletin released on Thursday.

It said the customs policy thrusts had the potential to break the cartels’ jinx and be a game-changer in combating illicit trade. The bulletin noted that customs comptroller-general Adewale Adeniyi’s administration had taken a stance against cartels and smuggling, with its focus on digital transformation and port automation.

“The SEREC commends C-G Adewale Adeniyi for his policy thrusts on trade facilitation, revenue optimisation, digital transformation, and stakeholder engagement. These initiatives have shown promise in tackling the menace of cartels and smuggling in Nigeria’s international trade and shipping space.

“Digital transformation reduces opportunities for cartels to exploit manual processes and human intervention, increasing transparency, efficiency, and accountability. Port automation tracks and monitors cargo movements, reducing the risk of smuggling and other forms of exploitation,” it said.

It explained that trade facilitation streamlines customs procedures and reduces bureaucracy, while revenue optimisation reduces the cartels’ chances of exploiting loopholes and evading taxes. It added that stakeholder engagement builds trust and cooperation between the customs administration and stakeholders.

The agency said that this was critical in identifying and addressing potential vulnerabilities in the system.

According to the bulletin, cartels and smuggling activities have been a long-standing issue in Nigeria’s international trade and shipping space. It noted that these activities were sustained by sophisticated networks and insider trading networks within ministries and regulatory agencies.

“Bonded terminals have been particularly vulnerable to exploitation by cartels, with many being used as conduits for trafficking,” it said.

The SEREC official said that the recent seizures of contraband and illicit goods by the NCS have highlighted the severity of the problem.

(NAN)