By Uche Usim
Trade facilitation, revenue generation, job creation, tackling corruption and fortifying national security are top priorities of the Nigeria Customs Service (NCS) as it trudges on with its Trade Modernisation Project (TMP).
The project, a presidential initiative, powered by the federal government’s economic rejuvenation and diversification agenda, leverages cutting-edge technologies to fully automate and streamline Customs operations and smoothen international trade.
The Federal Government seeks to generate $250 billion in revenue over a 20-year concession window through the TMP, which is poised to have a profound, long-term impact on the country’s social and economic development. Implemented through a Public-Private Partnership (PPP), detailed in a Concession Agreement (CA) signed on May 30, 2022, between the Federal Government of Nigeria and Trade Modernisation Project (TMP) Limited, the initiative delineates responsibilities and risk allocation. Ratified by the Federal Executive Council (FEC) on April 18, 2023, the agreement paves the way for the transformation of the Nigeria Customs Service (NCS) into an efficient organization equipped with the latest technology and facilities, facilitating streamlined services for businesses and government agencies. Under the agreement, the concessionaire commits to investing $3.2 billion over the concession period, with 2,500 Customs officers slated for training by the first quarter of 2025 to drive the initiative.
The project, implemented in phases, sees Phase 1 already underway, with TMP having committed over $400 million in investments by December 31, 2023. The concession expires on September, 27 2042.
The project is structured into three phases: Phase 1 – Year 1 to 3 (Initial Deployment): This phase focuses on implementing core project services, including: Unified Customs Management System (UCMS) comprising Revenue, Enforcement, and Office Automation Clusters; Trade Portal serving as a central hub for trading activities and integration with Other Government Agencies (OGA); Non-Intrusive Inspection System integrating 67 cargo scanners for enhanced cargo scanning and post-clearance audit; Risk Control Centre (RCC) for nationwide command and control activities; Electronic Cargo Tracking System (ECTS) for monitoring cargo transit; Cargo Release System facilitating automated cargo release. Geospatial Services utilizing GIS for enforcement and border management.
Telecommunication, Video Surveillance, and Connectivity backbone; Capacity Building programme focusing on knowledge and skills transfer within the NCS.
This comprehensive approach ensures the modernization and efficiency enhancement of the NCS operations across various fronts, contributing to streamlined Customs processes and enhanced trade facilitation.
Comptroller General of Customs, Mr. Wale Adeniyi, prioritises trade facilitation, emphasising simplification of processes. The project’s three phases span deployment, management, and eventual handover to Customs officers.
General Manager of TMP Limited, Mr. Ahmed Ogunsola, highlighted ongoing collaboration with NCS to achieve outlined milestones, including the development and deployment of a new Customs management system.
Ogunshola said that the system’s software, described as the Unified Customs Management System (UCMS), has seven layers of security designed to withstand cyber attacks.
He listed several key benefits of the TMP to include; enhancing revenue by improving the accuracy and efficiency of Customs processes so it better captures and collects duties and taxes, leading to increased government revenue.
“Digital systems help to reduce human interaction, thereby minimizing opportunities for corrupt practices and increasing transparency in customs operations.
“Again, simplified and expedited Customs procedures facilitate smoother and faster cross-border trade, benefiting importers and exporters by reducing costs and delays.
“Modern technologies such as automated risk management systems and cargo tracking enhance the ability of the NCS to detect and prevent illegal activities, including smuggling and the importation of prohibited goods.
“The use of advanced data analytics and automated systems helps in better enforcement of trade regulations and compliance with international trade agreements.
“Improved trade facilitation and increased revenue collection contribute to overall economic growth by creating a more attractive environment for international trade and investment.
“The modernisation project often includes training and capacity building for Customs officers, improving their skills and competence in handling modern customs operations.
“Modernisation aligns Nigeria’s customs practices with international standards, such as those set by the World Customs Organization (WCO), enhancing Nigeria’s reputation in the global trade community.
“Automation and digital platforms improve the experience for traders and other stakeholders by providing more accessible and user-friendly services.
Overall, the NCS trade modernisation project supports Nigeria’s goals of boosting trade efficiency, fostering economic development, and enhancing the overall integrity and effectiveness of its Customs operations”, he explained.
Chief Superintendent of Customs and National Public Relations Officer, Abdullahi Maiwada, at a recent interface with journalists, underscored the project’s role in facilitating trade and revenue collection.
For capacity fortification, TMP has signed and is implementing nine technical agreements with its technical and financial partners. These partners are as follows: Access Bank Plc – Financial Partner; Huawei – Lead Technical Partner; CBXP Limited – Software Development; Nuctech Company Limited –Non-Intrusive Inspection (Cargo Scanners); Boya E-Project Limited – Independent Expert to NCS and TMP; Emi Solutions Limited – Quality Assurance Expert to NCS and TMP; Chert Solutions Limited – OEM representative for hardware and services; Sambus Global Nigeria Limited – Geospatial Services Sandhall Global Consulting and Services Limited – Facility Management and Site Improvement.
The project is structured into three phases: Phase 1 – Year 1 to 3 (Initial Deployment): This phase focuses on implementing core project services, including: Unified Customs Management System (UCMS) comprising Revenue, Enforcement, and Office Automation Clusters; Trade Portal serving as a central hub for trading activities and integration with Other Government Agencies (OGA); Non-Intrusive Inspection System integrating 67 cargo scanners for enhanced cargo scanning and post-clearance audit; Risk Control Centre (RCC) for nationwide command and control activities; Electronic Cargo Tracking System (ECTS) for monitoring cargo transit; Cargo Release System facilitating automated cargo release. Geospatial Services utilizing GIS for enforcement and border management.
Telecommunication, Video Surveillance, and Connectivity backbone; Capacity Building programme focusing on knowledge and skills transfer within the NCS.
This comprehensive approach ensures the modernization and efficiency enhancement of the NCS operations across various fronts, contributing to streamlined Customs processes and enhanced trade facilitation.