Renewable Energy: Tackling Complexities in Equipment Import

In a move to align with the World Customs Organisation’s Green Customs initiative and the Federal Government’s push for clean and efficient energy, the Nigerian Customs Service has revolved to facilitate import trade in renewable energy equipment, BAYO AKOMOLAFE reports 

After one year of Advance Ruling System in trade facilitation, the Nigeria Customs Service (NCS) has further stressed the need to simplify import procedures in the nation’s seaports, especially for the importers of renewable energy efficient products. 

Currently, there are more than 300 developers and practitioners importing renewable energy efficiency products in the country and the only source of information they have is through their agents. 

Handbook 

Following this, the Customs Comptroller General, Adewale Adeniyi, made a pledge during the NCS’ 2025 Trade Facilitation Stakeholder Consultative Forum held in Lagos with launch of a handbook on import procedures for renewable energy/ energy efficiency technologies designed, to simplify the process of importing renewable energy equipment and help businesses achieve smoother trade, thereby facilitating a quicker transition to cleaner energy adoption. 

The key features of the handbook, according to him, include customs regulations, tariff classifications for renewable energy equipment, compliance standards, documentation requirements, and step-by-step import procedures, stressing that the handbook would help stakeholders navigate the complexities of importing renewable energy equipment, addressing misunderstandings in tariff classifications and import procedures. 

Assuring the importers during the event themed: “Trade facilitation measures for renewable energy and energy efficiency technologies,” Adeniyi, who was represented by the Deputy Comptroller General of Customs in charge of Tariff and Trade, Caroline Niagwan, highlighted the importance of simplifying complex customs procedures to ensure seamless flow of legitimate trade. 

Mechanisms 

Specifically, the Customs comptroller general noted that with the increasing volume of global trade, expanding global value chains and the rise of e-commerce and just-intime services, it had become imperative for Customs administrations to adopt mechanisms that support the seamless flow of legitimate trade. 

Moreover, he noted that such mechanisms were essential not only for sustaining international commerce but also for empowering small and medium-sized enterprises (SMEs) to benefit from cross-border trade. 

In recent times, Adeniyi said that trade facilitation had become integral to the operations of customs administrations globally, aligning with its core mandate of implementing international trade laws, adding that these laws include the WTO Agreement on the Implementation of Article VII of GATT 1994 (Customs Valuation Agreement), the WCO Harmonised System Convention of 1988 and its Annexes, and the WTO Agreement on Rules of Origin. 

According to him, “the implementation of these agreements by Customs stems from our traditional role of collecting duties on internationally traded goods, which is essential for national economic development.” 

Regardless of these, he noted that determining customs duties through tariff classification, valuation and origin assessment was a technically complex process as these complexities can result in disputes, delays, and additional costs. 

Fiscal measures 

Besides, the comptroller general stressed that the key pillar of the Paris Agreement (PA) was the promotion of a sustainable, low-car 

Efficient implementation of the various agreements by Customs will assist importers in internationally traded goods 

bon future, driven by investment in renewable energy and energyefficient technologies. 

He explained that NCS proudly supported the WCO Green Customs Initiative, which aims to facilitate the trade of environmentally sustainable goods, saying that Green Customs Initiative responds to the growing number of legally binding Multilateral Environmental Agreements (MEAs) and recognises the critical role customs play in enforcing them. 

However, he said that the challenges of commercial fraud, revenue leakage and the enforcement of policy measures to protect domestic industries, environment as well as public safety were complicating customs procedures. 

Adeniyi explained: “In the context of customs operations, trade facilitation refers to systems and procedures that streamline the import, export and transit of goods. 

This includes simplifying customs valuation, tariff classification, and origin determination, as well as facilitating declaration submission, payment, review, intervention, and release processes. 

For traders, trade facilitation ensures uniform standards, predictability and transparency, critical for efficient and timely clearance.” 

Outlining several key initiatives undertaken by the NCS, Adeniyi said that the enactment of the Nigeria Customs Service Act 2023 was aimed at simplifying trade processes including the B’Odogwu platform, Advance Ruling System providing pre-arrival decisions and predictability to traders and the recently launched Authorised Economic Operator (AEO) Programme, as well as the Time Release Study. 

Focus 

Furthermore, he reiterated Federal Government’s commitment, under the leadership of President Bola Tinubu, to fostering investment in sustainable practices, as outlined in Nigeria’s Energy Transition Plan (ETP), saying that NCS plays a vital role in achieving Nigeria’s net-zero emissions target by 2060 through the facilitation of renewable energy technology imports and the enforcement of supportive fiscal policies. 

Information 

Also, in a presentation titled: “The Role of Communication Strategy as a Veritable Tool to Deepen Trade Facilitation,” the National Public Relations Officer of the service, Abdullahi Maiwada, an assistant comptroller, emphasised the importance of strategic communication in driving institutional reforms. 

“In today’s fast-evolving global trade environment, Maiwada added that the deliberate use of effective communication is not merely a support function but a catalyst for transformation. 

It enhances institutional credibility, deepens trade facilitation, drives economic growth, supports environmental sustainability, and reinforces national energy security.” 

Also, the President, Renewable Energy Association of Nigeria (REAN), Ayo Ademilua lauded customs for simplifying the process for importing renewable energy products, saying that with the advance ruling programme, importers could get information prior to the arrival of their cargoes. 

Explaining that most of its members relied on information from agents, Ademilua suggested more direct interaction between Customs, the association and its members would enhance understanding of import duties and processes of renewable energy. 

Last line 

Efficient implementation of the various agreements by Customs will assist importers in internationally traded goods. 

Culled from New Telegraph Newspaper