Smuggling, Revenue Leakages: Customs Under Fresh Scrutiny Over Alleged Valuation Irregularities

 The Nigeria Customs Service (NCS) has come under renewed scrutiny following allegations of smuggling, revenue leakages and irregularities in the valuation of imported vehicles at some of the country’s major ports and border commands.

The allegations were contained in an investigative report published by SaharaReporters on August 7, 2026, which raised questions about the effectiveness of Customs’ revenue-collection and anti-smuggling mechanisms.

A key issue highlighted in the report was the alleged abuse of an Extended Procedure Code known as 846, which is used in processing vehicles with non-standard Vehicle Identification Numbers (VINs).

The report cited sources who alleged that the procedure had, in some instances, been exploited to undervalue vehicles, thereby reducing the amount of import duties payable to the Federal Government.

It specifically mentioned the Apapa, Tin Can Island and PTML Customs Commands, alleging that some new vehicles could have been processed as used vehicles through manipulation of valuation procedures.

The report also referenced previous concerns raised by customs agents over the 846 procedure, including a 2022 statement attributed to a former Tin Can Island Customs Area Controller concerning the number of declarations processed under the code.

However, the allegations have not been independently established.

The investigation also examined alleged smuggling activities along border routes in Ogun and Oyo states, including Seme, Idiroko, Ilaro, Ipokia and the Igbeti-Kishi axis.

According to sources cited by the publication, commodities allegedly smuggled through some of the routes included rice, petroleum products, frozen poultry and vehicles.

The report further raised allegations that some criminal networks operating around border communities could be connected to the movement of illicit commodities, including narcotics and arms.

It also alleged the existence of an illicit payment network involving some Customs personnel, clearing agents, importers and smugglers.

The report claimed that such alleged payments were sometimes linked to the clearance of goods, vehicle valuation and movement of prohibited commodities across border posts.

If established, the alleged practices could undermine legitimate businesses and result in significant losses of government revenue.

Customs Rejects Claims

The Nigeria Customs Service, however, rejected the major allegations contained in the report.

NCS spokesperson, Abdullahi Maiwada, described claims of unchecked smuggling and unrestricted movement of vehicles and trucks through the Seme and Ogun border corridors as false and misleading.

Maiwada said Customs had continued to record seizures along the affected corridors and remained committed to enforcing Federal Government policies while facilitating legitimate trade.

On the 846 code, he explained that it was an established digital valuation procedure designed for vehicles with non-standard or non-compliant VINs that could not be automatically assessed through the regular valuation database.

He said the procedure covered specialised heavy equipment, classic and vintage vehicles as well as customised vehicles.

The Customs spokesman also rejected allegations that the system was being manipulated to systematically clear new vehicles as used vehicles.

The Service equally dismissed claims of internal manoeuvring by its leadership to influence the succession process or favour particular officers or groups.

Calls for Further Investigation

The competing claims have heightened calls for greater transparency in Customs valuation procedures, border operations and revenue collection.

Stakeholders may also seek clarification on the volume of transactions processed through the 846 code, the revenue generated from such transactions and the safeguards in place to prevent manipulation.

Questions surrounding import-duty exemptions, alleged collusion and the effectiveness of border surveillance may equally require independent examination by relevant oversight authorities.

For a country seeking to increase non-oil revenue while combating smuggling and cross-border crimes, the integrity of Customs’ revenue and enforcement systems remains a matter of significant public interest.

The allegations, however, remain subject to verification, and any individual or institution accused of wrongdoing is entitled to due process before liability can be established.

Source: SaharaReporters investigative report of August 7, 2026, and response from the Nigeria Customs Service.