The Federal High Court in Lagos has nullified the forfeiture and subsequent auction of 19 containers of agricultural machinery belonging to Rahmaniyya Rice Limited, holding that the Nigeria Customs Service could not lawfully seize and dispose of consignments that had already been cleared and released to the importer.
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Justice Ibrahim Kala, who delivered judgment virtually, declared that ownership of the 19 containers and their contents remained vested in Rahmaniyya Rice Limited and ordered their immediate return to the company.
The court also awarded ₦5 million in costs against the Nigeria Customs Service Board to compensate the company for expenses incurred in prosecuting the action.
The suit, marked FHC/L/CS/2436/2025, was instituted by Rahmaniyya Rice Limited against the Nigeria Customs Service Board and seven other defendants.
The other defendants were the Comptroller-General of Customs; Emmanuel Oshoba, Area Comptroller of the Apapa Area Command; Smart Akande, Director of Legal Services/Legal Adviser of the NCS; the Managing Director of APM Terminals; the Managing Director of Ocean Network Express; Folash Logistics Nigeria Limited; and Eversgro Food International Limited.
The dispute centred on 19 40-foot containers covered by Bill of Lading No. ONEYBLRE08688500 and containing various agricultural machinery, including cleaning machines, seed sorting or grading machines, grain or dried pre-cleaners, RPCC3 and ACY-LC elevators, as well as husk-related equipment.
Rahmaniyya Rice, through its counsel, Babarimi Adeyemi, challenged the seizure, forfeiture and eventual auction of the consignments.
The company maintained that the goods were covered by an Import Duty Exemption Certificate and that the applicable duties and demurrage had already been paid.
It further told the court that Customs had cleared and released the consignments and issued exit notes, arguing that the Service could not subsequently seize, forfeit and dispose of the goods without complying with the Nigeria Customs Service Act 2023.
Customs authorities, however, challenged the competence of the suit through a preliminary objection, contending that Rahmaniyya Rice had failed to serve the requisite pre-action notice.
Justice Kala dismissed the preliminary objections and proceeded to determine the substantive dispute.
In his judgment, the judge held that the previous forfeiture orders relied upon by Customs could not stand because the consignments had already been cleared and released by Customs officers.
The court found that the statutory provisions relied upon for condemnation and forfeiture applied to goods that were uncleared, abandoned, prohibited or improperly released, and not to goods which had already undergone clearance and been lawfully released.
Consequently, Justice Kala declared that the 19 containers and their contents remained the property of Rahmaniyya Rice Limited.
The court specifically annulled and set aside the earlier forfeiture orders made by Justice Deinde Dipeolu on August 25, 2025, in Suit No. FHC/L/MISC/891/2025, and Justice Alexander Owoeye on October 16, 2025, in Suit No. FHC/L/MISC/1096/2025.
Justice Kala also nullified the auction of the containers to the eighth defendant or to any other person or entity.
The court consequently granted a mandatory injunction directing the immediate return of all 19 containers and their contents to Rahmaniyya Rice Limited, irrespective of whoever currently possesses them by virtue of the auction or otherwise.
The judge further ordered that where any of the containers or machinery could no longer be traced or recovered, the Nigeria Customs Service Board must pay Rahmaniyya Rice the monetary value of the missing equipment.
Justice Kala reaffirmed that all 19 containers and their contents covered by the bill of lading remained the property of the company.
On costs, the court awarded ₦5 million against the Nigeria Customs Service Board, holding that Rahmaniyya Rice had successfully established its claim and was entitled to be indemnified for expenses incurred in bringing the proceedings.
“Cost follows the event,” Justice Kala said, explaining that the company had been unnecessarily compelled to approach the court and incur litigation expenses.
The judge placed responsibility for the dispute on the Customs Board, describing it as responsible for “the whole mess.”
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Authored by Ben Ijeoma Adigwe Esq., ACIarb (UK), LL.M, Dip. in Artificial Intelligence, Director at the Delta State Ministry of Justice, Asaba, Nigeria.
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