Oluyinka Onigbinde
Stakeholders in the nation’s maritime industry have again expressed concerns over the Nigeria Customs Service (NCS) Modernization project. They lamented that the deal is anti-Nigeria, and lacks clarity of purpose.
The stakeholders stated this in reaction to the planned commencement of the Trade Modernisation Project under a Public Private Partnership (PPP) with a target of raising $200 billion revenue in the next 20 years.
Recall that the Project Management Office of the deal was inaugurated, in Abuja last week in partnership with Trade Modernisation Project (TMP) Limited, with a mandate to deliver the best-in-class technology for full automation of NCS processes and align with its peers around the world.
The Chairman of the TMP Ltd, Alh. Saleh Ahmadu had said that, under the terms of the Concession Agreement, TMP will invest a total of US$3.2 billion over a 20-year period, which will generate more than US$200 billion in revenue for the Federal Government.
He said financing for the first phase of the project, in the sum of US$300 million, together with a cash backed US$9 million Performance Bond in favour of the NCS, have been secured through financial partners.
He revealed that a substantial part of the investment would go towards building the capacity of the NCS, ensuring business continuity, and managing the associated project risks.
However, reacting to the planned commencement of the project, the President of the African Association of Professionals Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, stated that the Federal Government needs to clarify the present situation of things to stakeholders.
He argued that there is no clarity of purpose in what the concessionaires are expected to carry out. He further argued that if the Nigeria Customs Service is concessioned, there won’t be a need for the services of Customs technical partners; Messrs. Webb Fontaine anymore.
“I think the government should clarify the present situation of things about the state of the NCS itself, assuming that the government has started the modernization projects, then of what importance is Messrs Web Fontaine and for how many years? Also, what is the essence of the modernization, is the modernization excluded from the single widow’s platform for the harmonization of all other agencies? The Government particularly the Ministry of Finance has some developments to clarify with stakeholders and all the port users on this” he said.
Speaking also, a former President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke said that the concession arrangement is a subtle return to the pre-shipment inspection era.
He alleged that the so-called 25 years concession is a deliberate return to the pre-shipment inspection arrangement.
He also alleged that it is just “Chinese patronage”, in appreciation and return for loan repayment”.
Speaking further, he said: “Please can you point to one country in the whole world where its Customs undertook any form of concession for a period more than five years or where such similar arrangement has ever been contemplated or undertaken; none, only in Nigeria”.
“Also, asked the Nigeria government and the Nigeria Customs Service to point to any nation where the contractor had undertaken and has successfully implemented such contracts to its credit, none but an experiment is beginning with Nigeria”.
“This is conspiracy and wickedness against an agency and a nation. What an ideal government ought to do is to revisit the relevant WCO tools, instruments and initiatives aimed at attaining trade compliance, which is the critical challenge confronting the Nigeria Customs Service” he said.
He urged the NCS to be professionally revolutionary, by laying a foundation that will promote the basic principles, techniques and strategies for prompt mitigation and the promotion of the culture of trade compliance at all times.
In this regard, he said Trade Compliance templates and rules should be simplified and adequately communicated and coordinated.
He said, “Although the recently amended Customs Act revolves around the premise of trade sanctions as a way of serving as a deterrent to non-compliant traders, here again, in the spirit of firm applications to self-control instead of Customs verification “. It is much better for the Service to wade-off noncompliance than harbouring a system that wet ground for the traders to try and error, while bearing in mind that a businessman is driven by profit maximization and shall always seek for loopholes to actualize same”.
Similarly, the Registrar of NAGAFF Academy; Mr Francis Omotosho described the modernization project as a way of slaughtering Nigeria’s economy and selling the birth rights of Nigerians.
According to him, “the issue of modernizing the NCS calls for serious attention. I heard about it in the news too that a Chinese company called Huawei signed an MOU with Customs to take over their responsibilities on a PPP arrangement. The issue is that the Federal Government is selling out the birthright of Nigerians.
“The NCS is one of the defence agencies of this country. What I mean is that these are the people defending the sovereignty and economy of this country. So, when you now give out the responsibility to a foreigner, then what kind of economy are you defending; absolutely nothing”.
“There has been a series of partnerships with NCS since its inception and it has yielded absolutely nothing positive. What they’ve done is that they have slaughtered the Nigerian economy on the altar of modernization, the NCS is supposed to be a defence to Nigeria’s economy, so when you give it out to foreigners to defend for you, what do you think they will do? So, I don’t see the modernization project working for the benefit of Nigerians”, he said.
However, the National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA) Mr. Babatunde Mukaila opined that the modernization project is a must for the present administration to meet her financial obligations and maximally facilitate trade, while the revenue is optimally collected.
“The only way is to innovate to enable the service to come to par with global standards, where predictability and transparency reign in Customs formality. The Modernization project is a must for the present administration to meet her financial obligations and maximally facilitate trade, while the revenue is optimally collected” he said.
