The Registered Trustees of Auto Dealers in Lagos have secured a judgment against the Nigeria Customs Service (NCS), resulting in a N500 million award by the court. The dispute arose from the NCS’s actions on September 30, 2019, when officers invaded and sealed numerous car shops across the country, alleging smuggling or under-assessment during port clearance.
The Auto Dealers, represented by the law firm of human rights lawyer Monday Ubani, condemned the Customs’ raid and sealing of their shops, labeling it as “gross irresponsibility, unprecedented impunity, and abuse of power.” Despite initial claims of smuggling, the Customs later shifted the allegation to false declaration and underpayment.
The court, presided over by Justice A. O. Awogboro, ruled that the sealing of the car marts was unlawful and arbitrary, with no justification for such actions. The judgment included an order of mandatory injunction to immediately unseal the business premises of the Auto Dealers, along with a perpetual injunction preventing the Customs from further invading and sealing their shops.
Additionally, the court issued an order for the Customs to pay N500 million as general and aggravated damages for the arbitrary invasion and sealing off of the dealers’ business premises since September 30, 2019. This landmark judgment emphasizes the importance of due process and fair treatment in regulatory actions, serving as a precedent for protecting businesses from arbitrary closures and ensuring accountability in government actions.
