Smuggler’s Paradise: The Story of Nigeria’s Vehicle Smuggling Network Essay Example

brave the border patrol bullets, swampy forests, ditches and thickets dotting the 59 illegal routes along the border, often at the expense of his men and the merchandise. Although the government has lifted the ban on the importation of used-cars through the land borders, smuggling continues to flourish. “It would take a miracle for the government to eradicate vehicle smuggling. It’s cheaper and devoid of the bureaucratic bottle-necks characteristic of the legal importation procedure,” argued Festus Akinyomade, a Political Science graduate and used-car agent.There are several routes utilised by smugglers while bringing cars to receivers in Nigeria.

They avoid the main road because of the heavy presence of security operatives of the Nigeria police, the Nigeria Customs Service (NCS), Immigration, Joint Border Patrol, National Drug Law Enforcement Agency (NDLEA) and State Security Service. There is the Iyana-Ile-Oba road affords the smugglers the security of driving into the country without being noticed by the security operatives manning the border. There are other roads that link the major road along the Idi-Iroko road.Those roads are also utilised by the smugglers.

Just after Iyana Ile-Oba is Iyana-Igboso. Others include, Ihunbo, Igborodo, Ayetoro village, Akojaga road, Ilashe village, Koko road, Ogosa, Araromi, Tipper garage and Ajegunle. Although Idiroko is its principal frontier post, the Ogun State Command of the NCS oversees at least eight other border stations. These include Alaari, Idopetu, Ifohin-Tedo, Ijofin, Ijoun, Ilara and Imeko. Two of these outposts, Idopetu and Ijofin, share marine borders with Benin Republic.According to Adeojo, it is believed that Ajegunle and Ogosa are the most confusing routes because each has about two and three bypasses.

Ajegunle has Zomi, New road, Iko gate

road beside the Iko Gate Grammar School, while Ogosa veers on to Araromi and Tipper garage. Most of the roads are very difficult terrain for security surveillance or patrol, as some of them are specifically designed by the smugglers for their activities. Some are designed as footpaths only to widen at further distance. Some routes are designed with ditches. Smugglers hardly fall into those ditches because we know the terrain like the back of our palms. More so, we designed them.

Only the border patrols fall into the ditches whenever they chase after us. And whenever we realise they are on to our game, we devise new ploys to make it impossible for them to come after us. Many patrol vehicles have packed up along our routes. That is why the border patrol acquire mostly Sport Utility Vehicles, SUVs, and trucks but even those can hardly withstand so much,” revealed Banjo.

The smugglers often ply the routes in convoy and even when they aren’t accosted by border patrol, things could get bloody as the armed men go trigger-happy and fire sporadically into the air in order to expend their unused ammunition. “I’ve been there. Most times we claim it’s meant to scare off border patrol from coming after us but really, it’s psychological as in most cases, the border patrol hardly discover them along those routes. “It is unnecessary waste of ammunition and lives as so many school kids, farmers and commercial vehicle drivers and passengers have lost their lives while unning into such convoy,” disclosed the smuggler. But how is a car smuggled into the country? According to Banjo, it’s as simple as ABC.

“Not

a few Nigerians are learning the ropes. Save the attendant dangers when things go awry-the kind of dangers an average smuggler is trained to persevere-it’s no big deal smuggling a car across the border,” he said. All you need do is to contact an agent and then ensure that the shipping documents arrive in Nigeria at least a week or two before the vessel carrying the goods arrive. Then your agent can take over from there.

But unlike Nigeria, in Benin Republic, everybody obeys the statute books. “If they tell you the fee is one naira for anything, be prepared to pay one naira,” said Banjo. When the papers arrive, the agent takes them to the Benin port where the duty is assessed and necessary payments made before the goods can be cleared. The Beninoise are aware that most Nigerian goods that berth at their shores are to be smuggled into Nigeria hence the government tries to make the Benin port attractive to its largest customers; Nigerian smugglers. There is even a special task force that escorts smuggled vehicles from Cotonou wharf to Igolo-Idi-Iroko border for onward transition into Nigeria at a special fee,” disclosed Akinyomade. It also means more money for Benin Republic.

Expectedly, the country is exploiting its opportunities to the hilt as reflective in its establishment of a clearing house at Igolo where each Nigeria-bound vehicle pays an additional duty equivalent of N12, 000, and sometimes more. After duty has been paid, the convoy of smuggled cars leave Cotonou for Idi-Iroko, Nigeria, usually on Tuesdays through Thursdays.From Idi-Iroko, things get tough or easier depending on what card you play. Once you “see” (bribe)

the customs operatives that man each checkpoint along the smuggling routes, the journey get smoother.

The smuggler is given a note to be presented to any custom officer that stops him along the way. Usually, the note should ensure easy passage, but some officers could sometimes be difficult. Even after greasing the palms of the custom chiefs, smugglers could be denied safe passage. “In such instances, you have to muscle your way through.

And that leads to bloodshed,” Adeojo said.Undoubtedly, not a few smugglers and customs officers had met their end in deadly shootouts when either party fails to “cooperate. ” That is however, the exception, and not the norm noted Razaq Fasinmirin, a “retired” smuggler resident in Ilase, a village en route the Idi-Iroko border. According to him, it’s the greedy ones that refuse to cooperate. Following some repeated palm-greasing, the agent, and security officers develop a bond that transcends mere understanding. A police officer with the border patrol squad corroborates his claim.

Once you establish an understanding with the Nigerian security officers, you won’t have problem getting your vehicles in,” he said. Sometimes, business may simply not go well, especially when new people are posted to the borders, or when there is an onslaught against smugglers as necessitated by an outstanding fracas between them and border patrol operatives. At such times, the smugglers resort to using the numerous bush paths, and illegal crossing points that the locals use to go between both countries. Sometimes the paths lead through villages and prove more risky.

In some cases the smugglers kill villagers in their bid to avoid law enforcement agents and in many cases, the smuggled

cars arrive the country badly damaged. Smuggling is big business and dominates a significant portion of the $2 billion car industry in Nigeria due to the poor mass transit system and the high cost of buying a new car said Deola Akintonde, a clearing agent with De Luxe Motors, a Lagos based car dealership. According to her, very few Nigerians can afford to purchase a brand new car hence they are forced to buy used cars.So doing, many Nigerians fall victims of sharp practices by some of the smugglers. “Unknown to many, most smugglers remove the factory-fitted accessories such as the air conditioners, and compact disc players that come with the cars only to resell them to unassuming patrons at incredible prices,” Adeojo said. Idowu Adedoja, manager, Auto Meridian, a registered car mart along Maryland, Ikeja, Lagos, said that there could be greater problems.

“Many dealers import right hand drives because they are cheaper and they later convert them to the left side.This is dangerous,” said Adedoja who argued that local automobile mechanics lack the expertise to effect such conversion “and if anything goes wrong, the life of the car owner is put in jeopardy,” he said. Perhaps, he is not too far from the truth as indicative in the story of an Ibadan, Oyo State based business woman who met an untimely death behind the wheel of a converted SUV. She reportedly purchased her vehicle from a popular car dealership along Mobalaji Bank Anthony Way, Ikeja.

The SUV, a right wheel steering drive was brought in from one of the European countries, and was converted to a left wheel drive.Unfortunately, the steering pulled out

while the lady was travelling and the vehicle somersaulted into a ravine; she died instantly. Despite these dangers, Chidi Ekanem, a Lagos based auto-mechanic sees nothing wrong with steering conversion. “Save for some slight twitch at critical moments, like when you apply the break too suddenly or you negotiate a very sharp turn, there is really no problem with conversion,” maintained Ekanem, who owns a converted Honda Prelude which he uses for commercial transport.Like Ekanem, Bola Adele, managing director of Sultech Ventures, a computer dealership in Ikeja, Lagos, hardly worries whether a car is left-hand or right-hand drive. “The bottom line is to own a car,” says Adele who recently bought a fairly used Toyota Camry 1996 model at N800, 000.

In reality though, there is not usually much difference in the cost of vehicles imported through the ports and cars smuggled in at the borders. For instance, the minimum cost of used vehicles like the Toyota Avensis and Volkswagen Bora fluctuates at N1. 5 million and N1. million for both the smugglers and those dealerships that import directly into Nigeria.

This is despite the fact that there is a significant difference between clearing the cars locally and smuggling them through the borders. To clear a car at the Lagos ports cost between N200,000 to N350,000 as clearance fees, while those who bring in cars through the border pay between N5,000 and N20,000 on every car smuggled into the country. “Our cars are usually cheaper,” disclosed Adeojo. “For instance, you can purchase a Mazda 300 ZX at N50, 000 in Cotonou.By the time you add the N10, 000 or more you have to pay as

“settlement” fee at every customs checkpoint, the sales price moves up to N300, 000 and N400, 000,” he explained.

However, unconfirmed estimates put the growth rate of the Nigerian automobile industry at five per cent yearly since 2000. The trend is expected to continue with the expansion in key sectors of Nigeria’s economy including telecommunications, banking, manufacturing and retailing, oil and gas. Also, used vehicles accounted for more than 60 per cent of vehicles imported in the past eight years.By the end of the year the figure is expected to skyrocket going by the removal of the ban on the importation of cars through the land borders.

According to Kevin Nwabuiku, Managing Director of Foresight Motors, a Lagos based car dealership, many corporations are acquiring choice vehicles for their staff at moderate prices and serviceable instalments. “And even private individuals can now acquire brand new automobiles of their choice, thanks to progressive loan schemes initiated by banks and various car dealerships,” he said.However, Akinyomade argued that it is preposterous to assume that there would be an increase in the purchase of new vehicles and a decrease in the patronage of smuggled ones. “Apart from the few people working in the telecommunications and banking sectors, just a handful of people can afford a brand new vehicle.

The majority who can’t opt for used cars and the services of vehicle smugglers,” he noted. According to dealers, more cars are imported legally and illegally through the land borders than through the sea ports. The Cotonou Port still provides a fair deal for millions of Nigerians living below the level of poverty.According to Victoria Omotosho, a Sango Ota, Ogun

State based agent, vehicles purchased at Cotonou, apart from their relative affordability enables an agent go home with decent remuneration even after paying duty at the country’s entry point. However, not a few car dealers are worried about the prohibitive cost of clearance and other fees on imported vehicles.

Despite the promise of the recent government reforms and cancellation of the ban on vehicle importation via the nation’s land routes, “It’s still business as usual as Nigerians still have to contend with the expensive duty and clearance fees.You can’t blame anyone for seeking ways to avoid such expenses,” argued Banjo. However, Benedict Asuen, a car dealer and member of the United Berger Motor Dealers Association, UBMDA, the umbrella body for car dealers at Berger, Apapa-Oshodi Expressway, Lagos, argued that Berger is the best place to purchase a car. “Whether tokunbo or new, our prices are more reasonable and you will get your car intact,” he said.

But Ahmed Ojikutu, a computer dealer, claimed that he wouldn’t touch a used car with a bargepole. Eight years ago, he bought a new Peugeot 504 GR model at N1. 2 million.Ever since, he hardly took the car to a mechanic for repairs.

“This is because a new car is easier to maintain. You don’t have to worry about any hidden fault,” he stated. But not many Nigerians can take emulate Ojikutu. Currently, it costs N250, 000 to N300, 000 to clear a vehicle at the Apapa, Lagos seaport, whereas it costs about N120, 000 to get a car out of Cotonou, then N40, 000 to smuggle it into the country. Seven years ago, when the federal government banned

the importation of cars older than eight years into the country, not a few people condemned the action.

A Customs inspector at the Seme border, said that the federal government had to reverse its five year-old car policy following relentless persuasion by the Nigerian Union of Road Transport Workers, NURTW, the Nigeria Labour Congress, NLC, Car Dealers Association, CDA, and UBMDA among others. The government’s decision was in everyone’s interest as the stockpile of cars and other goods at the nation’s seaports was alarming he explained. The inspector claimed that contrary to the allegations of inefficiency, the customs service is well equipped to combat smuggling. If you visit the Idi-Iroko and Seme commands, you will see the cars that we have seized … We are up to the task,” he said. Over one thousand units of vehicles with duty paid value of about N918million were reportedly seized by the Federal Operations Unit, Zone A, Lagos, the anti-smuggling unit of the Nigeria Customs Service, NCS, revealed Rasheed Taiwo, Controller of the Unit. According to him, about 1, 745 automobiles were confiscated from smugglers between January and December 2007.

Taiwo also disclosed that the total value of seizures made by the unit in 2007 stands at N4. 94billion.Worried by the non-improvement in traffic and patronage at the country’s seaports and other entry points, the Nigerian Customs Service, (NCS) and the Nigerian Ports Authority (NPA) recently, called on the federal government to reduce the high tariff system in the industry or risk the continued decline of revenue accruable from importation. The agencies stated that the high tariff structure hinders economic growth while causing inflation and a reduction in NCS

revenue contributions to the federation account. The issue was a priority discussion as members of the House of Representatives Committee on Privatization visited the NPA recently.According to Abdulsalam Mohammed, Managing Director of the NPA, the problem of diversion of imported goods through seaports of Nigeria’s neighbours results from high costs of operation.

He described the issue of cargo diversion as technical, stating that it occurs as a result of high customs tariff system. Those importers that divert their consignments do so to reduce the amount of import duty paid on a particular good and thereby end up smuggling in the good into the country. For instance, some Nigerians smuggle vehicles into the country through other neighbouring African seaports he noted.Corroborating him, Hamman Bello Ahmed the new Comptroller-General of the NCS identified the high rate of import duty as the cause of smuggling in the country.

In a recent interview, Ahmed stated that a reduction of import duty would bring an end to smuggling and consequently, encourage Nigerians to follow the legal procedure for importation. The Comptroller-General noted that although new Common External Tariffs (CET) had been introduced within the Economic Community of West African States, (ECOWAS) region, the new tariff regime is yet to fully take off.According to him, lower tariff would make smuggling unattractive to Nigerians. Nigerian importers divert their cargo to Cotonou, Benin because the country’s tariff regime is friendly.

In 2007, Philippines earned $49 billion as customs duty; Nigeria hardly made $3 billion. This indicates the degree of the country’s loss to smuggling activities. However, despite the precarious nature of the business, vehicle smuggling across the borders does not seem likely to

abate soon. Nigeria’s automobile industry remains underdeveloped and not many Nigerians can afford new cars.Worsening its plight, the country concentrates on the importation of completed car units for sale in the local market with more emphasis placed on after-sales service.

But in the 1970s, there were car assembly plants in the country resulting in an increase in export revenue, as neighbouring countries bought cars assembled in the nation’s automobile plants. Peugeot was one of the most popular marques in the country and the success of the industry ensured that Nigeria enjoyed good returns from the export of Peugeot cars to neighbouring countries like Guinea, Ghana, Sierra Leone and Liberia.However, the current state of the nation’s automobile industry puts to rest any fledgling optimism that she might yet breathe new life into its ailing sub-sector. According to Rasheed Amoo, Managing Director of Hardalt Technical Ventures, an Ota, Ogun State-based engineering firm, Nigeria is slow in adapting to the changing pattern of the complex automobile industry.

“There is need for stronger policy initiatives that could help improve the overall state of the transport sector and promote the development of local technology,” he said.Perhaps Amoo is not too far from the truth. A critical look at the industry reveals the absence of the basic technical capacities which ought to promote local technology and discourage imports of completely built up units. There are also hardly any incentives that might encourage local assemblers to increase local content in production, tax reduction and subsidies and regulations to ensure local content in varying percentages.

To ensure the development growth and survival of the nation’s automobile industry, the federal government evolved a National

AutomotivePolicy, NAP. Government said that the policy will encourage the utilisation of local human and material resources, in the automobile sector. The government also established the National Automotive Council, NAC, whose future plans included the provision of soft loans to the sub-sector; development of an auto test centre, ATC, to test locally produced and imported components; funding of research and development of auto related projects, and training and retraining of manpower for the auto industry.All of these should hopefully revitalize the sub sector if well implemented.

But that would be in the long term. In the short term, except something is done about the country’s troubled transportation network and high import tariff, smugglers like Banjo will suffer no lull in their activities. More importantly, intending car owners must still move around. And if that means buying a defective or converted “fly by night” car, then so be it.