Customs Agents Seek Diversified Income Streams Amid Steep Decline In Import Revenues

Customs Agents Seek Diversified Income Streams Amid Steep Decline In Import Revenues

In the maritime sector, various obstacles, including high clearance costs due to fluctuating exchange rates and a lengthy list of prohibited items, have created a challenging business environment. This has left licensed customs agents uncertain about their future, with some facing job loss, relocation, and even fatalities….CONTINUE READING

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Recent reports indicate a significant shift in the profession, with 60% of licensed customs agents transitioning to alternative occupations, such as commercial motorcycling (okada riding), due to the adverse effects of volatile exchange rates. Comparisons between the administrations of Godwin Emefiele and the current leadership at the Central Bank of Nigeria reveal a perception that the sector is currently facing more significant challenges.

Lucky Amiwero, the Founder of the National Council of Managing Directors of Licensed Customs Agents, acknowledges the impact of Emefiele’s administration on the maritime sector but notes that the current challenges are more severe. The sharp fluctuations in the exchange rate are affecting both import and export activities, exacerbating the situation.

Nnadi Ugochukwu, Deputy President of the National Association of Government Approved Freight Forwarders, points to excessive taxation and an extensive import prohibition list as additional burdens on the industry. To adapt to the changing landscape, some customs agents are exploring alternative avenues to sustain their livelihoods.

One such alternative is ship chandelling, a lucrative sector in Nigeria that provides supplies and equipment for ships and seafarers. Additionally, agents can diversify into exportation, which presents opportunities to bring foreign exchange into the country and address forex scarcity.

Trucking consultancy is another viable option for agents, involving the arrangement of truck services for cargo transportation without the need for truck ownership. This provides a steady income, albeit less lucrative than traditional customs clearance.

Some agents are also exploring opportunities in car delivery services and assisting individuals in purchasing both Nigerian and foreign-used cars. Leveraging their expertise in clearing, agents can negotiate favorable terms and ensure proper duty payments.

Licensed agents, such as Toochukwu Nwaigbo, have embraced trucking consultancy to stay active and generate income. Despite the challenges, this alternative allows them to negotiate with truck owners for a percentage of the service fee.

Johnpaul Ejiogu, a licensed customs agent, has found success in helping people deliver their cars to various destinations. This alternative has proven more financially rewarding than the conventional clearing business.

In addition to providing income for displaced licensed agents, these alternative ventures have the potential to stimulate growth in overlooked sectors and contribute to much-needed revenue generation for the government.

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