Customs ordered to pay N500m damages to auto dealers for illegally sealing shops

A Federal High Court in Lagos has ordered the Nigeria Customs Service (NCS) to pay N500 million as damages to the Registered Trustees of Auto Dealers in the state for illegally sealing shops belonging to dealers.

The court also issued an order of perpetual injunction restraining the defendants from further invading and sealing the business premises of the members of the plaintiff on the ground that the vehicles in their car shops, which had earlier been inspected, assessed and cleared at the port by officers of the defendant were not properly inspected, assessed and cleared.

The Registered Trustees of Auto Dealers in Lagos had sued the Nigeria Customs Service Board and the Comptroller-General of Customs for the illegal invasion and sealing of 434 car marts/shops by some officers of the NCS on September 30, 2019, on the grounds that the cars were either smuggled or under-assessed during clearance at the ports.

Justice Abimbola Olawunmi Awogboro, in her judgment delivered on December 27, 2023, gave the order directing the NCS to pay to the plaintiff (Registered Trustees of Auto Dealers in Lagos) the sum of N500 million as general and aggravated damages for the arbitrary and unlawful invasion and sealing off of the plaintiff’s members’ business premises, and for the huge economic loss and depreciation in business fortunes of the plaintiff’s members on account of the unlawful sealing off of their business premises since September 30, 2019.

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Delivering the judgment in suit number FHC/L/CS/665/2021, the judge also held that the sealing of the car marts of the plaintiff’s members was unlawful and arbitrary, adding that there was no justification for the unlawful act.

According to Justice Awogboro, the argument by the defendants that some members of the plaintiff undertook to make an additional payment of import duty as a result of which their car marts were unsealed was not tenable and did not in any way support or justify the arbitrary action of the defendants because those members did not agree to do so willingly but out of coercion and duress, to enable them to carry on with their business.

The judge granted the major reliefs sought by the plaintiff and an order of mandatory injunction directing the defendants to, with immediate effect, unseal the business premises of all members of the plaintiff, which had been unlawfully and arbitrarily sealed by officials of the defendants since September 30, 2019.

Reacting to the judgement, the Service said it would appeal the court’s decision.

The Service National Public Relations Officer, Chief Superintendent of Customs (CSC), Abdullahi Maiwada, told our correspondent on the phone that though the service is yet to receive a copy of the judgement, it is going to appeal the decision of the Court.

“We are aware of the judgement of the Federal High Court sitting in Lagos. Though, we are still yet to receive a copy of the judgement, even at that the Nigeria Customs Service will definitely appeal the judgement.

“The Law allows for a period of about 90 days to appeal. We have the right of appeal and we are definitely going to do that within the stipulated period “ Maiwada said on the phone.

Freight Forwarders and auto dealers have expressed their joy over the decision of the court.

A former President of the National Association of Government Approved Freight Forwarders (NAGAFF), and Professor of Political Science & Dean of the Faculty of Social Sciences and Humanities, Eboyin State University, Dr. Eugene Nweke, said the operational laws of the Service had been put to test.