Igolor, Benin Republic – The Nigeria Customs Service has raised the alarm that smuggled goods are collapsing Nigerian factories because they are sold cheaper than locally manufactured products.
The warning was given on Wednesday at Igolo, Benin Republic, during a one-day training workshop organised by the Edo-Delta Journalists Forum for journalists reporting the Nigeria-Benin corridor.
The training was themed “Journalism Beyond Borders: Reporting Cross-Border Relations, Trade, Security, Culture and Emerging Technologies in the Nigeria-Benin Republic Corridor.”
Speaking at the workshop, the Acting Controller of the Ogun I Area Command, Idiroko, Deputy Comptroller Abdulhamid Ibrahim, said smugglers who evade import duties enjoy an unfair advantage over legitimate businesses.
Ibrahim, who was represented by
CSC FO Shaibu, said this unfair advantage threatens domestic production, discourages investment, and kills jobs.
He used spaghetti as an example, explaining that a Nigerian manufacturer who pays for electricity, workers’ salaries, raw materials and taxes will need to sell a carton for N5,000 to break even.
In contrast, he said, traders who bring similar products through unofficial routes without paying duty can sell theirs for N3,000, making it impossible for compliant factories to compete.
He warned that such price gaps weaken local manufacturers and make it difficult for businesses that comply with tax laws to remain profitable and sustain operations.
He added that smuggling also deprives the Federal Government of import duties and other revenue needed for national development.
He therefore called for stronger enforcement and better intelligence sharing between Nigeria and Benin Republic to tackle illicit trade.
Ibrahim advocated more effective verification of import documents and confirmation of duty payments, especially for vehicles imported through Benin Republic before they are registered in Nigeria.
He noted that smuggling is not limited to land borders, warning that poor surveillance at seaports and airports can also facilitate movement of illicit goods.
He called on Customs services of both countries to strengthen intelligence gathering, digital verification of documents, and background checks on importing companies.
He also advocated investment in specialised personnel and laboratory facilities to test imported products for safety and quality compliance, in collaboration with SON, NAFDAC and other regulators.
He said improving product verification and showing credible comparisons between local and imported goods would boost consumer confidence in Nigerian products.
Beyond enforcement, stakeholders at the workshop agreed on the need to balance border security with facilitation of legitimate trade, warning that excessive restrictions disrupt livelihoods in border communities.