Nigeria Customs Service Denies Allegations of Secret Auctions to Cronies
The Nigeria Customs Service has denied allegations that it secretly auctioned seized containers and vehicles to cronies and connected individuals without following due process. This comes after a series of internal documents were obtained, revealing what appears to be a pattern of direct allocations of seized goods.
Internal Documents Reveal Possible Irregularities
A series of internal documents, obtained by a correspondent, show a “Direct Auction Allocation of Containers” signed by H. H. Hadison, Comptroller, Special Duties, between April and July 2025. These letters, bearing the seal of the Nigeria Customs Service Committee on Direct Disposal of General Goods, were issued to multiple private companies approving the allocation of 40-foot containers containing various items such as vehicles, prefabricated houses, construction slabs, tiles, hospital equipment, and cartons of goods. The auction fees ranged from N1m to N2m.
Reviewing at least five separate letters obtained by , a pattern of manual approvals allegedly linked to insiders within the agency was identified. Each letter followed a similar format, bearing the same signatory, H. H. Hadison, fwc, psc(+), Comptroller, Special Duties, and carried Customs’ letterhead and watermark marked “RESTRICTED.”
One of the letters, dated 31 July 2025 and addressed to a company with the code MSMU8098517, approved the release of four containers reportedly containing luxury vehicles, including Lexus RX330s, Lexus ES330s, and a Toyota Highlander, at the Tin Can Island Port, Lagos. The vehicles were auctioned at a combined fee of N2m.
Legal Frameworks and Concerns Over Transparency
One of the letters titled “Direct Auction Allocation of Containers” read in part: “I am directed to inform you that the Comptroller-General of Customs has allocated the listed containers to your company. This approval is in line with the provisions of the Nigeria Customs Service Act 2023, Section 119, via direct auction sale. The containers shall be released to the beneficiary subject to the following conditions…”
Stakeholders and auctioneers have raised concerns about the identical wording, recurring signature, and repeated format across several letters, suggesting possible insider involvement in unauthorized disposals of seized goods. According to legal frameworks governing the disposal of seized, forfeited, or overtime goods, transparent processes are required. Under the Customs and Excise Management Act and the 2023 Nigeria Customs Service Act, auctioning of seized or overtime goods must be conducted through public notice or the e-auction platform, not by private allocation letters.
Criticism from Industry Leaders
Commenting on the issue, the President of the Association of Licensed Auctioneers of Nigeria, Musa Kurra, accused the Nigeria Customs Service of engaging in widespread impunity and violating extant laws in its handling of seized goods and containers. Kurra expressed concern over what he described as “the reckless disregard for due process” by Customs officers in conducting direct allocations of seized items to politically connected companies and individuals.
He noted that the recurring pattern of N2m per container suggests a fixed-fee arrangement inconsistent with the valuation process typically applied during legitimate auctions. “I don’t know why people choose not to respect the law anymore. The impunity with which the Service is carrying out things now is better imagined,” Kurra said. “I don’t understand what kind of country we are becoming.”
Kurra also explained that the Bureau of Public Procurement, established by law as the regulatory body overseeing procurement matters, has oversight responsibility in auction processes since auctions involve public assets and financial transactions.
Official Response from Nigeria Customs Service
Reacting to the allegations, the spokesperson of the Nigeria Customs Service, Ahmed Maiwada, dismissed the claims as baseless and misleading. “What type of auctions are they referring to?” Maiwada queried. “You only need an auctioneer when you want to auction items that were budgeted for and have fulfilled their lifespan—for instance, vehicles that have been used for five years and are no longer serviceable. In that case, you have to invite an auctioneer.”
Maiwada explained that seized or forfeited items do not fall under the category requiring the involvement of external auctioneers, adding that such disposals are conducted strictly within the confines of the Nigeria Customs Service Act. He added that the process of disposing of overtime cargo is aimed at decongesting ports, not generating revenue. “The essence of disposing of goods on overtime after they have passed their due period in the port is to decongest the port. It is not for revenue. We lose more money if we auction items,” he said.
According to him, all auction processes follow due procedure, whether through direct requests or electronic means. “There are criteria for valuation, which are followed, and the request can be done through direct request or electronic auction,” he said. On the allegations of favoritism and secret allocations, he said, “The issue of cronies or whatever they are saying, it is left for them to provide evidence of that. I am not aware of such claims.”