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Viewing cable 07LAGOS768, NIGERIA: CUSTOMS CUMBERSOME BUT AVIATION HANDLING

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Reference ID Created Released Classification Origin
07LAGOS768 2007-12-03 06:03 2011-08-25 00:00 UNCLASSIFIED Consulate Lagos
VZCZCXRO1598
RR RUEHMA RUEHPA
DE RUEHOS #0768 3370603
ZNR UUUUU ZZH
R 030603Z DEC 07
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 9635
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9381
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS LAGOS 000768 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
SIPDIS 
 
STATE FOR AF/W 
TREASURY FOR DPETERS, RHALL, RABDULRAZAK 
ENERGY FOR PERSON, GAY 
COMMERCE FOR KBURRESS 
STATE PASS USTR FOR LISER, AGAMA 
STATE PASS TRANSPORTATION FOR KSAMPLE 
STATE PASS OPIC FOR ZHAN, MSTUCKART, JEDWARDS 
STATE PASS TDA FOR EEBONG, DSHUSTER 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USAID FOR NFREEMAN, GBERTOLIN 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EFIN EINV NI
SUBJECT: NIGERIA: CUSTOMS CUMBERSOME BUT AVIATION HANDLING 
EXPANDING OPERATIONS 
 
 
 1. (SBU) Summary:  Local logistics company executives said 
internal Nigerian customs disputes contribute to the slow 
pace of the customs clearance process.  Despite the 
cumbersome Nigerian customs process, the company is expanding 
their operations at the local airport.  End Summary. 
 
--------------------------------------------- -- 
Conflict Between Customs Agencies Slows Process 
--------------------------------------------- -- 
 
2.  (SBU) Nigerian Aviation Handling Company (NAHco) CEO 
Bates Sules and COO Kristof Henot met with EconCouns and 
EconOff to discuss the state of Nigerian customs.  They 
described a divided customs service rife with tensions 
between sub-agencies.  The Federal Operations Unit (FOU) is 
responsible for enforcing customs law and checking for 
contraband, while the regular customs unit at the airport 
handles duty and clearance processes.  However, the FOU 
regularly steps into the sister agency's territory.  The 
executives described a recent two-week-long freeze of all 
cargo in the airport warehouses during which the FOU insisted 
it had to screen the items for contraband, including 
illegally imported textiles.  The airport customs officials 
in charge of clearing imported items were told to "step 
back".  In order to meet growing import demands, and support 
existing export demands, customs reform is key, Sule and 
Henot stated.  Both stated that the length of time items 
remain in customs has nothing to do with the handling 
companies and is entirely up to the customs officials. 
 
3. (SBU)Sule and Henot went on to describe the cumbersome 
customs export process.  In order to export items, an 
organization must obtain clearance from four different 
government agencies, including multiple physical screenings 
of the items.  This process is burdensome to businesses who 
wish to export Nigerian products, as well as those who want 
to temporarily export items for repair.  Both in-bound and 
out-bound items are screened by x-ray machines provided by 
the U.S. Government. 
 
------------------------------------------- 
Paperless Process Would Ease Customs Burden 
------------------------------------------- 
 
4. (SBU) Sule said NAHCo would like to see the implementation 
of a paperless process, similar to that recently started in 
Ghana.  While that transition was not an easy process, it is 
now flowing well, Henot remarked, having helped with its 
implementation.  When asked by EconCouns whether there would 
be any resistance on the part of Nigerian officials to 
reforms, Sule opined that all Nigerian agencies want 
modernization to go forward. (Comment: Post is skeptical; 
many Nigerian officials have a personal financial interest in 
keeping the process as burdensome as possible. End Comment.) 
 
5. (U) NAHCo is expanding its cargo area to accommodate more 
carriers, a sign of increasing non-oil economic activity. 
Sule stated the company had seen a significant increase in 
imports into the country.  NAHCo handles about 50-60 percent 
of incoming cargo. 
 
6. (U) This cable has been coordinated with Embassy Abuja. 
 
 
HUTCHINSON