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Home » How African Finance Corporation, Others Dangle $450M Carrot At FG For Customs Concession       

How African Finance Corporation, Others Dangle $450M Carrot At FG For Customs Concession       

by Joshua
November 18, 2019
in Uncategorized

News broke last weekend that President Muhammadu Buhari has consented to the controversial customs modernization contract, which entails development of Electronic Based Customs processes for the Nigeria Customs Service (NCS). It is also known as E-Customs.

The Comptroller-General of Customs, Col. Hameed Ali (rtd), who disclosed this at the graduation of Senior Course three of Nigeria Customs Command and Staff College, Gwagwalada, Abuja, also explained that the deployment of technology would go a long way in enhancing activities of the service.

He explained that E-Customs would change the manner the NCS operates.

Shipping Position Daily recalls that news of the proposal broke recently when a letter that was signed by the Chief of Staff to the President, Mallam Abba Kyari on the subject, leaked to the media. It was written in September 2019.

The letter which was addressed to the Minister of Finance was copied to the Director General, Infrastructure Concession and Regulatory Commission and the Comptroller General of Customs.

The letter informed the top government officials of plans to concession the revenue collecting arm of the Nigeria Customs Service to four private companies, under what is being touted as Customs mordernisation project.

However, the purported approval by President Buhari comes about one month after the chairman of House of Representatives Committee on Public Petitions; Jerry Alagbaoso moved a motion that the deal be investigated. 

Last weekend’s news of the President’s approval also comes about one week after one of the promoters of the e-customs deal disclosed that the project will ensure a complete turnaround of the Nigeria Customs Service within 12 months.

Managing Director of one of the firms that have been linked to the project, Messrs Bionica Technologies W.A Ltd, Umar Kuta, also added that the African Finance Corporation was ready to invest a whopping US$450 million in the automation of the operations of the Nigeria Customs Service (NCS).

Kuta had told the House of Representatives ad-hoc committee investigating what has come to be seen as ‘concessioning of customs’, that the e- platform would improve revenue generation by the Customs and enhance security at the nation’s borders.

The joint committee headed by James Faleke, had directed the Nigeria Customs Service to provide details of the controversial e-Customs project and the cost implication to government.

But, Kuta told the law makers that, “a complete automation of the activities of the NCS within 12 months will boost revenue and eliminate all forms of sharp practices in the system”.

Kuta also seized the opportunity of the House of Representatives’ probe to unveil the identity of the remaining partners.

He said the firm has five technical partners, namely:  Paramout Group, Huawei Technology, Smiths Detection, Larsen & Toubro Group and Nuctech of China.

However, contrary to earlier insinuation, he added that the partners would jointly muster about $450 million in investment to attain the complete turn-around programme, even as he quickly added that, the Africa Finance Corporation has also indicated its interest in supporting the Customs automation programme.

According to him, the consortium is to partner NCS by direct capital investment in collaboration with Original Equipment Manufacturers to develop and implement specific modernization programmes, with full automation of all the NCS business processes and procedures through the development and implementation of a robust and secured ICT platform.

He said this entails complete systems integration with the current ICT platform adding that the partnership will engender development and implementation of modern customs border stations, airports and marine posts, adding that the marine posts would be utilized to develop the marine customs outfit.

Kuta further said that Bionica’s direct capital investment through the proposed ppp, guarantees that NCS modernization program will be professionally executed adding thatthe implementation of Bionica’s proposed projects, will ensure that all collectable revenues will be optimised and accounted  for in-line with the Treasury Single Account policy of the Federal Government.

It would be recalled that the e-custom Strategic Plan began in 2016. 94 companies responded to a bid request by the NCS. Fifteen companies were pre-qualified and all were invited to make presentations on their solutions to enable Nigeria realise its vision of attaining complete automation and enthroning best practices in Customs operations.

While justifying the e-customs deal, Col Ali  said last week that, when fully deployed, the entire processes including local administration, clearing of goods and services will be done electronically.

“Export and import processing will be paperless.

“We need to up our game in our knowledge of computer because in the next one and half years, if you don’t have knowledge in computer, you cannot function in customs.

“Your performance evaluation report will not be written on paper. You will fill it online and your superior will assess you online.

“We need to tell ourselves that even if it will take you through private studies to learn, do so, you must learn how to use computer because everything will be fully computerized,’’ he said.

 


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