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Exclusive! Customs heads to court to vacate injunction against Customs concession project

CGC, Ali

 

—-accuses aggrieved litigants of pulling out of project

Eyewitness Reporter

The Nigeria Customs Service has instructed its legal team to head to court in a bid to vacate the restraining order on the implementation of the $3.2billion Customs concession programme.

A Federal High Court in Abuja on Friday has restrained the Federal Government from enforcing or giving effect to an agreement on the Customs Modernisation Project otherwise known as E- custom allegedly executed by its agents on May 30, 2022.

Justice Inyang Ekwo issued the orders while ruling on an ex-parte motion filed by two firms – E-Customs HC Project Limited and Bionica Technologies (West Africa) Limited, which was argued on Friday by their lawyer, Anone Usman.

However, the Nigeria Customs, through its National Public Relations Officer, Deputy Comptroller Timi Bomodi, said the service will go to court to challenge the order.

In an exclusive interview with our reporter, Bomodi declared that the management of the agency will not engage in what he called small talk over the matter that is already in court because that would be sub-judicial.

”We will go to court”, he declared emphatically.

We can’t be making small talk over a matter that is already in court, that will be sub judicial.

”Customs will make its reaction in court and that will be for the public to judge what the issues are”, the Customs spokesman stated.

He further explained that the litigants, E-customs HC Project Limited and Bionica Technologies (West Africa) Limited, pulled out of the agreement on their own accord when they said they could not accept the terms and conditions of the projects.

Bomodi stated that the Trade Modernization Project Limited; Huawei Technologies Limited and African Finance Corporation, who eventually won the concession bid, agreed with the same terms and conditions that the litigants rejected for the same amount.

”The people that took the Customs to court were in the beginning part of the process, they disagreed with certain parts of the agreement and they couldn’t go forward.

”Of course, if you have some people who disagreed with what you are planning together and they pulled out and they were not asked to leave, they pulled out on their own, does that mean because they were there in the beginning, the project cannot go on?”, he asked rhetorically.

”That doesn’t make sense.

”The project was conceived to help the service better and those that we started the journey together couldn’t agree with the terms and conditions of the project and they left and some other people came in to take up their slot.

”Those ones said they could achieve the same results with the same terms and conditions which the other party rejected” Bomodi said.

He stated that the Customs shall argue its case in the court and will leave the judge to decide the merit or otherwise of the case.

Customs shall be in court and do the needful”, the Customs spokesman concluded with emphasis.

The court, on Friday, also issued an order of interim injunction against the Federal Government or its agents acting through the Federal Executive Council from retrospectively ratifying the decision to concession the Customs Modernisation Project also known as the e- custom project to Trade Modernization Project Limited, Huawei Technologies Company Limited and African Finance Corporation.

The restraining order issued by Justice Inyang Ekwo of the Abuja Division of the court shall last till the hearing and the determination of a suit brought against the Federal Government and other parties by two aggrieved companies.

The two aggrieved companies, E-customs HC Project Limited and Bionica Technologies (West Africa) Limited jointly challenged the alleged unlawful and fraudulent concession of the E-custom project to the defendants.

Counsel to the two aggrieved companies, Anone Usman, had on behalf of the two plaintiffs, argued an ex-parte application praying the Federal High Court for the interim orders against the defendants to protect the interest of his clients.

Justice Ekwo, while ruling on the ex-parte application, granted the prayers of the plaintiff having placed sufficient evidence of interest in the concession project.

The judge also granted permission to the aggrieved companies to serve a writ of summons and all other filed processes on the African Finance Corporation at its head office, located in Ikoyi, Lagos through DHL courier services.

Defendants in the suit are the Federal Government of Nigeria; Attorney-General of the Federation; Minister of Finance, Budget and National Planning; the Infrastructure Regulatory Concession Commission; Nigeria Customs Service; Trade Modernization Project Limited; Huawei Technologies Limited; African Finance Corporation and Bergman Security Consultant and Supply Limited being 1st to 9th defendants respectively.

Justice Ekwo subsequently fixed June 28 for the hearing in the matter.

The two plaintiffs had in their statement of claim narrated how they proposed to carry out customs modernization project through several government officials for the benefit of the Nigeria Customs Service.

They claimed that after a series of meetings and negotiations with some of the defendants, President Muhammadu Buhari granted anticipated approval for the e- custom Project

They averred that on September 2, 2020, the Minister of Finance presented a memo number EC2020/153 to the Federal Executive Council, (FEC) the highest decision-making body of the Federal Government, and secured approval for the two plaintiffs to be granted the concession.

Plaintiffs further claimed that trouble started when the Nigeria Customs Service unilaterally reviewed the FEC approval and imposed other conditions among which are the shareholding formula and governance structure.

They claimed that the power of the NCS to unilaterally review FEC approval was protested and that the Comptroller General of Customs stood his ground.

Plaintiff asserted that to their surprise, they read in the news that the Nigeria Customs Service had executed a concession agreement with Trade Modernization Project on May 30, 2022, Huawei Technologies Company and African Finance Corporation, in total breach of the Concession Agreement vetted by the AGF in conjunction with the Minister of Finance.

They averred that Trade Modernization Project was incorporated April 2022 at the Corporate Affairs Commission with one Alhaji Saleh Amodu, a close friend of the Comptroller General of Customs as the chairman.

Plaintiff asserted that the new company, having been just incorporated in April 2022, could not have obtained and did not obtain the full business case compliance certificate from the Infrastructure Regulatory Concession Commission and the approval of the Federal Executive Council to carry out the e- custom project.

They, therefore, asked the court to make a declaration that the decisions of the Federal Government and its agents to enter into a concession agreement with Trade Modernization Project, Huawei Technologies Company and African Finance Corporation in respect of the e-customs project is illegal, null and void, having been made in gross violation of Section 2 of the Infrastructure Concession Regulatory Commission Act 2005.

They also asked the court to declare that E-customs HC Project Limited is the approved and rightful concessionaire for the e-customs project as approved by the Federal Executive Council at its meeting of September 2, 2020 and in line with Section 2 of the Infrastructure Concession Regulatory Act.

They also applied for an order of the court directing the Federal Government through the AGF, Finance Minister, ICRC and NCS to consummate the E- custom project with the 1st plaintiff as approved by FEC in September 2020.

Besides, the two plaintiffs asked the court to compel the defendants to pay them a sum of Two Hundred Million Naira as the cost of litigation.

The Federal Government had on May 30, 2022  signed the e-Customs concession agreement with Africa Finance Corporation (AFC) and China’s Huawei Technologies Limited.

The Comptroller-General, Nigeria Customs Service (NCS) Hameed Ali, while signing the agreement in Abuja, enthused that the implementation of the project will generate a revenue of $176 billion over the next 20 years.

Ali said, the e-Customs concession project would ease the cost of doing business, boost revenue, enhance productivity and put a stop to every arbitrariness in the service.

“The $3.2 billion e-Customs project to be financed by the Africa Finance Corporation (AFC) and managed by Huawei Technologies Limited under a 20-year concession window, when fully implemented, will quadruple Customs’ current N210 billion average monthly revenue collection” Ali declared.

The agents who allegedly executed the disputed concession agreement are the Nigeria Customs Service, Trade Modernization Project Limited, Huawei Technologies Company Nigeria Limited and African Finance Corporation.

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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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