By Sylva OBASI
LAGOS, NIGERIA – In a watershed moment for international trade and administrative law, the Court of Appeal, Lagos Judicial Division, has delivered a landmark judgment in Appeal No: CA/LAG/CV/1070/2022: Sea Empowerment and Research Centre Ltd/GTE & Anor v. Nigeria Customs Service.
PLATFORM REPORTERS gathered that in a judgement delivered on Monday, April 13, 2026 and Certified on May 12, 2026, the Appeal Court ruling effectively halts the “algorithmic tyranny” of automated customs valuation, reaffirming that modern technology must remain subordinate to the clear dictates of the law.
Commenting on the Judgment, counsel for the Appellants, Dr. Emeka Akabogu, SAN whose firm prosecuted the matter at both the trial and appellate Courts noted that “The Judgment is not just a victory for importers, manufacturers, traders, project coordinators and freight fowarders; it is a victory for constitutionalism.
“It sends a clear message to all regulatory agencies: You cannot automate away the law. Digital transformation must be built on the foundation of statutory compliance. Today, the Rule of Law has triumphed over the Rule of the Algorithm.”, Akabogu deposited.
Dr Emeka Akabogu, Principal Partner, Akabogu and Associates
Tracing the Path of Contention: The VIN Valuation Policy
The seeds of this legal battle were sown in February 2022, when the Nigeria Customs Service (NCS) introduced the Vehicle Identification Number (VIN) Valuation Policy. Designed to automate the assessment of duties on imported vehicles, the policy was marketed as a tool for transparency and the removal of human discretion.
However, the implementation revealed a stark reality: the system utilized rigid, hardcoded benchmarks that frequently ignored the actual price paid by importers (Transaction Value), leading to duty hikes. What began as a protest by clearing agents at the ports evolved into a profound legal question: Can a government agency use an automated “black box” to override the statutory valuation hierarchy mandated by the World Trade Organization (WTO) and domestic law?
From Technical Dismissal to Judicial Enlightenment
The journey to justice was not without obstacles. In July 2022, the Federal High Court dismissed the Appellants’ suit on narrow technical grounds, suggesting the case was premature and that internal administrative remedies had not been exhausted.
Logo of SEREC, Appelants in the case
The Court of Appeal has now corrected this by ruling that the trial court’s dismissal was a misconception of law and a breach of the Appellants’ right to a fair hearing. The appellate court emphasized that when the legality of a policy is challenged as being ultra vires to a statute, the doors of the temple of justice must remain wide open.
A Landmark Pronouncement on Valuation Legality
The Court of Appeal’s judgment transcends the automotive industry. It strikes at the heart of how customs duties are assessed for all imported goods. The Court reaffirmed that Section 45 of CEMA (and its equivalents in the new Nigeria Customs Service Act) establishes a mandatory, sequential ladder for valuation.
In essence, the Court held that the “Rule of the Algorithm”—where a system automatically rejects a declared value simply because it falls below a pre-programmed benchmark—is illegal. By law, the Transaction Value must be the first consideration. Only after a transparent, evidence-based rejection of this value can the Service proceed to alternative methods.
CGC of Customs, Bashir Adewale Adeniyi
Victory of the Rule of Law
This judgment – the first of its kind in Nigeria – aligns the West African trade power house with global best practices while echoing similar judicial sentiments in the High Court of Uganda (Testimony Motors) 1 and the Tax Appeals Tribunal of Kenya (Autoexpress Ltd) 2.
Meanwhile, industry observers are watching to see how the Nigeria Customs Service led by its Comptroller-General, Wale Adeniyi would respond to the appeal court ruling: whether it would proceed to the Supreme Court for further interpretation or comply to the judgment of the appealette court on its VIN Valuation Policy going forward.
