Nigeria Customs: Onne Free Trade Zone Contraband Seizure Hits N5.5bn

• The Nigeria Customs Service seized 56 containers of contraband, valued at N5.53 billion, at the Onne Free Trade Zone in Port Harcourt.
• Goods including vegetable oil, used clothing, and foreign tomato paste were falsely declared as machinery and spare parts.
• Comptroller-General Bashir Adewale Adeniyi confirmed the seizures, citing abuse of Free Trade Zone concessions and diversion to local markets.
• The imports violated Sections 55 and 233 of the Nigeria Customs Service Act 2023.
• Owners of the seized goods will face prosecution as part of efforts to safeguard the economy, public health, and ensure compliance.

The imports violated Sections 55 and 233 of the Nigeria Customs Service Act 2023.

The Nigeria Customs Service (NCS) has announced a substantial **Nigeria Customs Onne Free Trade Zone contraband seizure**, intercepting 56 containers laden with illegally imported goods at the Port Harcourt Area II Command in Onne, Rivers State. The seized items, which include vegetable oil, used clothing, and foreign tomato paste, carry a total duty-paid value of N5.53 billion. This enforcement action highlights a growing concern over the misuse of special economic zone privileges.

The contraband was discovered after being falsely declared as machinery and spare parts, a common tactic used by importers to circumvent regulations. Comptroller-General Bashir Adewale Adeniyi publicly disclosed these findings during a press briefing in Onne, where he conducted journalists through the seized containers at Onne Wharf. The operation underscores the NCS's commitment to curbing illicit trade within the nation's economic zones.

The federal government established Free Trade Zones (FTZs) and other special economic zones to stimulate local production, encourage exports, and foster domestic manufacturing by offering various incentives, including duty-free importation of essential plants, raw materials, and machinery. However, Comptroller-General Adeniyi expressed serious concerns regarding the persistent abuse of these concessions by certain importers.

Investigations by the NCS revealed a pattern where goods are imported under the protective umbrella of FTZ concessions but are subsequently diverted into the local market, bypassing legitimate customs duties and regulations. Specifically, the seized vegetable oil and used clothing were found to be in direct contravention of **Sections 55 and 233 of the Nigeria Customs Service Act 2023**, which govern import restrictions and false declarations. This signals a heightened focus on enforcing compliance within these zones.

The extensive **Onne Port Harcourt N5.5bn contraband** seizure included 45 containers of Delicious Pur brand vegetable oil, each containing 1,050 jerry cans of 25 litres. These containers, falsely declared as machinery and spare parts, alone accounted for a duty-paid value of N4,252,500,000. Additionally, nine 40-foot containers of used clothing, valued at N1,045,000,000, and two 20-foot containers of foreign tomato paste, with a value of N232,000,000, were also confiscated.

Comptroller-General Adeniyi emphasized that the primary intent behind these illicit imports was not for manufacturing activities within the Free Trade Zone but rather for direct introduction into the Nigerian local markets. The **Nigeria Customs Service Act 2023** enforcement action is aimed at safeguarding Nigeria's economic interests, protecting public health, supporting domestic production, ensuring adherence to import laws, preventing government revenue loss, and strengthening the nation's security architecture against harmful and illegal goods.

The **Nigeria Customs Service** has been conducting a comprehensive review of operations involving goods imported through Onne ports but destined for various Free Trade Zones and other economic zones across the country. This review, driven by intelligence and risk-based analysis, has uncovered significant instances of **Free Trade Zone concession abuse Nigeria**, leading to the current large-scale seizure.

Following thorough investigations, the owners of the seized goods will face prosecution in accordance with relevant import laws. This development serves as a clear warning that importing consignments that violate existing restrictions or involve false declarations will incur severe penalties. The NCS is committed to combating **Nigeria import duty evasion prosecution** and ensuring that all importers operate within the confines of the law, thereby protecting the national economy and public welfare.

This development signals heightened enforcement by the Nigeria Customs Service against the abuse of Free Trade Zone concessions for illegal imports. Lawyers and compliance officers should urgently advise clients operating within or interacting with FTZs in Nigeria to review their import declarations and supply chain practices to ensure strict compliance with the Nigeria Customs Service Act 2023 and avoid severe penalties, including seizure of goods and prosecution.

Source: Original reporting via The Punch