The Nigerian Customs Service Act 2023 in Perspective: A Critical Legal Review

The Nigeria Customs Service Act 2023 is a comprehensive reform of Nigeria’s customs and excise legal framework, repealing the long-standing Customs and Excise Management Act and replacing it with a modern, technology-driven and enforcement-focused statute designed to facilitate legitimate international trade, secure government revenue, protect Nigeria’s borders, align customs administration with international best practices, and introduce stronger accountability and judicial oversight mechanisms. The Act establishes the Nigeria Customs Service as a statutory body with corporate personality and confirms it as the lead agency for border control, import and export regulation, and revenue collection. It vests Customs officers with extensive operational and enforcement powers comparable to those of law enforcement agencies, including the authority to carry arms, arrest offenders, stop and search vessels and vehicles, seize goods, and take necessary measures to prevent customs offences, while protecting officers from personal liability when acting in good faith and within the confines of the law.

The Act declares Nigeria a single customs territory and designates seaports, airports, terminals, bonded warehouses and other approved locations as customs control zones, within which all goods remain under Customs control until they are lawfully released, irrespective of ownership or contractual rights under instruments such as bills of lading. This statutory control has direct implications for maritime trade and contracts of affreightment, as the carrier’s obligation to deliver cargo is legally subordinate to customs clearance requirements. The Act also introduces electronic customs administration through risk management systems and a single window clearance platform, legitimizing electronic processes such as PAAR, Form M and NICIS II, enabling data sharing with other government agencies, and embedding technology at the heart of customs operations. Upon the arrival of a vessel from a foreign port, the master, carrier or authorized agent is required to report the ship and its cargo to Customs and submit accurate cargo manifests, and no discharge of goods may occur without Customs’ authorization. The Act strictly prohibits premature discharge, breaking of bulk, opening of containers or movement of goods without permission, prescribing severe penalties for violations and reinforcing Customs’ primacy at ports and terminals.

A central feature of the Act is the mandatory declaration regime, under which all imported and exported goods must be fully and accurately declared, with false or misleading declarations attracting penalties and seizure. Customs is empowered to examine goods, open containers and take samples as necessary, and any damage arising from lawful examination does not attract liability. Goods are released only after declarations are accepted, all applicable duties, taxes and levies are paid, and all regulatory requirements are met, with possession passing only upon lawful release by Customs and not merely upon endorsement of the bill of lading. Even after release, the Act establishes a robust post-clearance audit framework, allowing Customs to audit importers and agents, reassess duties, and impose additional liabilities and penalties where under-declaration or non-compliance is discovered, thereby underscoring that clearance does not mark the end of Customs’ oversight.

The Act further regulates temporary storage, uncleared goods and abandonment by providing that goods pending clearance may be placed in temporary storage under Customs control, and goods not cleared within prescribed periods may be deemed abandoned to the Government. However, abandonment does not translate into automatic auction, as such goods remain in temporary storage until they are lawfully disposed of in accordance with the Act. One of the most consequential innovations introduced is the distinction between seizure and disposal of goods. While Customs officers retain broad powers to seize goods suspected to be unlawfully imported or connected with customs offences without a prior court order, the Act mandates that final disposal of goods by sale, destruction or other prescribed means may only be carried out with the order of court. This judicial oversight applies to uncleared goods, abandoned goods, prohibited goods and goods not properly released, marking a deliberate departure from the former regime under CEMA and introducing a critical safeguard against arbitrary deprivation of property. Seized and abandoned goods are deemed to remain in temporary storage until their lawful disposal, which must be conducted through transparent procedures, including public auctions or tenders with adequate publicity, in line with regulations issued by the Customs Board.

The Act also creates a comprehensive framework for customs offences and penalties, prescribing stiff fines, imprisonment and forfeiture of goods, vessels and conveyances for offences such as smuggling, false declaration, obstruction of officers, evasion of duty and tampering with goods. It provides for condemnation proceedings and prescribes strict limitation periods and pre-action notice requirements for suits against the Service, creating important procedural thresholds for customs-related litigation.

Overall, the Nigeria Customs Service Act 2023 is not a cosmetic reform but a fundamental restructuring of customs administration in Nigeria, strengthening enforcement, embedding digital processes, and introducing judicial safeguards, particularly at the point of final deprivation of property. For importers, carriers, terminal operators and maritime practitioners, the Act demands heightened compliance, prompt clearance of goods and careful attention to the new legal thresholds governing seizure, auction, post-clearance audits and litigation, with section 119 standing out as a transformative provision in reshaping customs enforcement and property protection in Nigeria.