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Customs

Litigation, suspicion stall implementation of E- Customs project

CGC, Ali

 

—As CGC Ali queries sincerity of House of Reps committee

Eyewitness reporter

Suspicion among the leading players in the execution of the E-Customs modernisation project may have stalled the final implementation of the multi-billion dollar project, three years after it was conceptualised.

It could be recalled that in  2019, the Federal government approved the engagement of a consortium of four firms to enter into a 20-year concession arrangement with the Nigeria Customs Service (NCS) and the Infrastructure Concession Regulatory Commission (ICRC) for a Customs modernisation project and establishment of digital and paperless Customs administration.

On September 2nd, 2020, the Federal Executive Council (FEC), presided over by President Muhammadu Buhari, ratified the NCS modernisation scheme estimated to cost about $3.1billion.

The presidential initiative on the NCS modernisation or “E-Customs Project” requires the establishment of a digital/paperless customs administration.

The government then approved the engagement of the consortium composed of Bionica Technologies West Africa, Bergan Security Consultants & Suppliers, Africa Finance Cooperation and Huawei to establish a project special purpose vehicle to enter into a 20-year concession arrangement with NCS and ICRC.
However, suspicion and misunderstanding among the Nigeria Customs Service, the Ministry of Finance, Central Bank of Nigeria(CBN) and the concessionaires have dogged the implementation of the project.
It has also led to court cases from an aggrieved party in the project, Adani Mega System, who felt shortchanged in the process.
At the public hearing hosted by the House of Representatives Joint Committee on Customs and Excise, Banking and Currency and Finance in Abuja on Monday to resolve the logjam, the session was also marred by an exchange of altercation between the Comptroller- General of Customs, Col. Hammed Ali(rtd) who sent a representative and the committee members when the Customs lord makes a pass at the lawmakers.
In his presentation before the committee, the CGC, through his representative, the Assistant Comptroller General (ICT), Galadima Saidu, said he was curious that the House was resuscitating the issues on the project which the same committee had earlier treated and dispensed with.
Ali told the committee that the contractor; Adani Mega System Limited who was supposed to execute the project had been relieved of it.

In his submission, the CGC declared  “investigations carried out by the Service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorized third party Adani International Limited (UK) registered four months after the agreement was signed and the Company has since been dissolved ( Copy of the search result is hereby enclosed as Annex A).

“Therefore, the assertion by Adani Mega System Ltd that its international partner has a proven track record, capacity, expertise and competence to execute and operate within the project field covered by the agreement was false and misleading.

“It was upon the realization of this misrepresentation that the Committee on CISS canceled the agreement entered into with Messrs Adani Mega Systems Limited, via a letter Ref:TED/DIR/GAM/GEN/Ol/OZS dated 18th September 2017 (Capy attached as Annex ‘B).

“It is worthy of note also that the House of Representatives Joint Committee On Finance, Customs and Public Petition passed a resolution suspending the Concession Agreement on e-Customs pending the outcome of an investigative hearing.

“The hearing was conducted and the Committee Vide a second letter NAS S/9/CHR/2019/JOINT/002 dated 20th December 2019 (Copy of the letter is hereby attached as Annex C) stated that after due consideration of the process towards the award, has found no breach in the award of the contract for the e-Customs Project.

“The committee recommended that the agreement be finalised and the Consortium awarded the Contract (Copy of the House Committee’s report is attached as Annex D). It is therefore curious that the same House is raising the issue over again.”

Apparently,  the word “curious” as used by the Customs boss which was considered derogatory,  unsettled the lawmakers, as a member of the Committee, Ndukwe Nkole, asked the Customs Comptroller General to withdraw the remark and tender an apology.

“The CG of customs in his address to this parliament, especially in paragraph 4, is very derogatory to the parliament and it is very wrong for a public officer, an appointed officer to address elected representatives, that he’s curious.

“So I demand that the CG of customs must apologise to this parliament for using such a derogatory statement on the parliament.”

However, rather than apologise,  ACG Saidu, who represented the CGC,  merely emphasised the importance of the project until he was prevailed upon by lawmakers before he reluctantly said “I apologise”.

At the same hearing on the “Need to Resolve the Debacle Between Central Bank of Nigeria (CBN)/Technical Committee on Comprehensive Import Supervision Scheme (CISS) and Adani Mega System Ltd Hindering the Take Off of Nigeria Customs Services E-Customs Modernization Project’, which was boycotted by the CBN, one of the leading parties to the project, the ministry of Finance informed the committee of how court cases have frustrated the take-off of the exercise.
In her presentation, the Minister of Finance, Budget and National Planning,
Zainab Ahmed who was represented by the Director of Home Finance, Stephen Okon, informed the committee that the Finance Ministry was liaising with the Office of Attorney General to ensure quick resolution of the legal drawbacks so as to implement the project.
“There is no doubt, the pending cases are impeding the commencement of the E-Customs Project.
“In order to pave way for the take-off of the project, the ministry is liaising with the Office of the Attorney General of the Federation to ensure that the arbitration is speedily concluded.
“This we believe could settle all the pending matters and allow the E-Customs project to commence without further delay”,
However, the Chairman of the committee, Leke Abejide, told the gathering about the concerns of the lawmakers over the delay in the implementation of the project which he claimed is causing Nigeria the loss of about $8.810 billion annually.

He expressed the belief that if the project is properly implemented,  it will go a long way in reducing Nigeria’s vulnerability to external debts and also strengthen its currency.

“The cost of concession implementation over a 20-year period is $3.1 billion American Dollars and the project is projected to generate about $176.2 billion American Dollars within the 20 years Concession period.

“We equally understood the SPV is to recover their investment based on negotiated and staggered recovery strong ratio from the Comprehensive Import Supervision Scheme (CISS) and Nigerian Export Supervision Scheme (NESS),” he said.

However, the public hearing was adjourned to March 4, 2022, to allow Adani mega systems, the litigant and the remaining parties such as the CBN to present their own submissions to the committee.

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Customs

We feel your pains — Customs seeks support of stakeholders over introduction of 4 percent levy on customs operations

Funso OLOJO
Nigeria Customs service has explained the rationale behind the introduction of the 4 percent  levy on the value of imported goods which has now become a subject of controversy among the freight forwarders.
The levy, which is the 4 percent Free on Board (FOB) of imported goods, was introduced into the assessment notice of a cargo declarant.
This has caused an outrage among stakeholders, especially the freight forwarders who have vowed to resist it.
However, in its official reaction to the new fee, the Customs management sought the understanding of the agitated stakeholders, acknowledging their importance relevance and invaluable contributions to the emergence of the new Customs Act.
Explaining the rationale behind the new fee, the Customs said this was in line with the provisions of the Customs Act of 2023.
“The Nigeria Customs Service (NCS) proudly recognises the invaluable
contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023.
“This landmark legislation, which replaces the long-standing
Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is
implementing a 4% charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service”
The customs also acknowledged the  concerns raised by stakeholders over the
sustained collection of 1 pet cent Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection
Scheme) alongside the 4% FOB charge.
“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders” the service pledged
 “Under the leadership of the Comptroller General of Customs, Bashir Adewale
Adeniyi, the NCS reaffirms its commitment to transparency, fair
trade practices, and efficient revenue management.
“All stakeholders are urged to
support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies, the service concluded.
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Customs

ANLCA divided over increment in CISS fee

Funso OLOJO 

There seems to be a discordant tune from the umbrella body of the freight forwarders in Nigeria, the Association of Nigerian Licensed Customs Agents(ANLCA) over the increment of the Comprehensive Import Supervision Scheme(CISS).
It would be recalled that the Customs brokers woke up on Tuesday, February 4th, 2025 to discover that the CISS fee, which used to be 1 per cent of the value of Import has been jerked up to 4 per cent.
The increment,which they claimed was slammed on them without a prior notice, has therefore sparked off heightened tension among the agitated freight forwarders who were said to be calling for a showdown with the customs.
While some of them were hinting at possible shut down of the Port to give vent to their anger and frustration, the National President of ANLCA, Mr Emenike Nwokeoji, has backed the decision of the Customs to increase the CISS fee.
Apparently scolding those who are allegedly “spoiling for war” with the Customs for their lack of knowledge of Customs law, Emenike said the Customs acted within the 2024 Customs Act to make the increment.
“I am not aware that ANLCA is protesting over the increment of the CISS from one per cent to four per cent.
“What I am aware of is that the ANLCA NECOM is meeting to take a decision on the increment.

“I, however, know that the increment is backed by the Nigeria Customs Service Act 2023. The increment is in the Act. That is where they brought it from” Emenike declared.

He however expressed his disappointment over the manner the customs jumped the increment on Customs brokers.
“They( Customs )should have, however, held sensitisation meetings to ensure all stakeholders are well aware.

“The increment started today. NECOM will be meeting very soon to take a stance on the new development.”, the ANLCA high Chief stated.

His stance on the issue contradicted the position of Alhaji Mukaila Abdullaziz, the former Sole Administrator of ANLCA who believed the increment by the customs may spark off an outrage among freight forwarders.
Also, Segun Oduntan, the Vice President of ANLCA holds contrary view with his principal, Mr Emenike when he allegedly issued 24 – hour ultimatum to the Customs to reverse the increase or get prepared to contend with the wrath of the irate customs brokers.
“We noticed the NCS has introduced 4% and renamed it Customs Operation Finance as appeared on this assessment.
“The Customs CG needs to call for an emergency meeting within 48 hours to address this development because it is already causing uproar in the freight forwarding system.

“All the freight forwarding associations would have to come together on this matter” Oduntan thundered .

Kayode Farinto, the former Acting National President of ANLCA however advised freight forwarders not to pay the increased tariff, asking the Customs authority to give the Customs brokers 90- day window through which the trading public will be adequately sensitized about the new fee
Meanwhile, the customs authority has said it would respond to the development as soon as possible in order to douse the gathering tension.
The CISS is a regulatory fee charged by Customs on all imported goods into Nigeria.
The fee, which used to be 1 per cent of the FOB (Free on Board) value of the shipment, has now been adjusted to 4 per cent, according to Section 18 of the Nigeria Customs Service Act 2023.
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Customs

Customs plans to integrate B’ Odogwu with National Single Window for transparency , operational efficiency

– eyes less than 48- hour cargo clearance time at port.

Funso OLOJO 
As the Customs’ trade modernisation platform, B’ Odogwu, is gradually gaining momentum among the customs brokers and other stakeholders, the Nigeria customs service said it was making preparation to integrate the indigenous platform with the National Single window.
This is aimed at making the customs operations transparent where all the stakeholders, including  President Bola Ahmed Tinubu, would be able to clearly see and monitor goods clearance procedures at the Ports.
The Deputy Comptroller-General of Customs(DCG) Kikelomo Adeola, Head of Customs Information Communications(ICT) and modernisation project make this known while interacting with terminal operators at Apapa customs command.
DCG Adeola, who had so far held series of discussions with freight forwarders, shipping companies and terminal operators to enlighten them on the launch of B’ Odogwu in Apapa and Tin Can Island commands of the customs, said integrating the indigenous platform with National Single Window is what the customs desires and ready to do because everyone will see what the customs and other agencies are doing.
” Even the president will be looking at it” she declared.
She said the users of this platform have nothing to worry about as the new concept,  which was wholly conceptualized, developed and deployed locally, is meant to simplify clearing process in the most transparent manner.
DCG Adeola, who was joined in the interactive session by the Area Controller of the Tin Can Island ports, Comptroller Frank Onyeka, the representative of Area Controller of Apapa customs command, Comptroller Babatunde Olomu, Ahmed Ogunsola and Dr Jummai Umar of Trade Modernisation Project Limited, assured the apprehensive stakeholders that Customs training team will be attached to the two commands where they will engage stakeholders in an intensive training  before the new concept is deployed.
According to DCG Adeola, the modernisation indigenous platform is a  bold and transformational concept aimed at addressing inefficiencies, improving transparency, and positioning Nigeria as a competitive player in global trade.
 She stated that the initiative is built on cutting-edge technology designed to streamline processes and ensure smoother operations across ports and terminals.
“This project is not just about deploying technology; it’s about creating a robust system that enhances trade facilitation and revenue generation.
“We are addressing critical issues such as smuggling, administrative bottlenecks, and inadequate monitoring mechanisms,” DCG Adeola noted.
She noted that the new concept, when it was first introduced at the PTML command in October, 2024, has gone through some transformational stages with some teething problems which the service has resolved.
Adeola believed that before the automated platform is deployed at the Tin Can and Apapa customs commands, all the identified gaps at the pilot stage would have been closed.
She said the objective of the service is to ensure that goods are cleared in less than 24 hours by the time the indigenous platform is fully deployed.
However, the Customs chief allayed the fears of some stakeholders who expressed worries over possible technical glitch or downtime.
 
Adeola disclosed that there was no single incident of downtime since October,2024 when the pilot scheme of the platform was launched at the PTML.
 
She further declared that the training programmes for the stakeholders have commenced and the customs would ensure that about 90 percent of stakeholders are well grounded in its operations before it takes off at both the Tin Can and Apapa customs commands.
 
Adeola further  assured the inquisitive stakeholders that 20 banks have so far been linked with B’ Odogwu platform, saying more are going to be added as times goes on.
 
She however warned them not to pay to the non- compliant banks so their goods would not be trapped.
She also asked them to make diligent inquiry about the banks which are linked with the indigenous platform to avoid unpleasant situation.
 
 Dr. Jummai Zainab Umar-Ajijola, Managing Director of the Trade Modernization Project Limited,  credited the success of the modernization initiative to strong coordination between the NCS and its partners.

“The partnership between the Nigeria Customs Service and the Trade Modernization Project Limited has been instrumental in driving this initiative forward.

She praised the efforts, commitment and resilience Comptroller-General of Customs , Adewale Adeniyi and DCG Adeola for the modest success the new concept has so far recorded.

Dr Ajijola emphasized that B’Odogwu; the newly introduced unified customs system, represents “strength and resilience” and is a homegrown solution that positions Nigeria as a leader in trade facilitation.

“Our goal is not just to modernize customs operations in Nigeria but to create a model that will be adopted across Africa and beyond,” she added

She disclosed that stakeholders are the core components of the project which, if well harnessed, would drive the success of the concept.

” That is why our management at the Trade Modernisation Project Limited emphasized the importance of stakeholders in this new concept and we believe that if we can achieve 80 per

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