Headlines

The Trillion-Naira Vault: Building Political-Proof Ports for Nigeria

Monday Discourse with Ibrahim Nasiru

“He who controls the keys to the vault will always dictate the direction of the ship.”

The reception to my recent analysis on rethinking Nigeria’s Port financing strategy highlighted a deep-seated, justifiable skepticism within our maritime community.

While stakeholders overwhelmingly agree that the Nigerian Ports Authority (NPA) must transition toward domestic capital mobilization and revenue retention, one critical question keeps resurfacing: How do we protect a Port Modernization Sinking Fund from the political interference that has paralyzed the Cabotage Vessel Financing Fund (CVFF) for decades?

It is a valid worry.

In Nigeria, the road to infrastructure decay is paved with well intentioned funds that were ultimately treated as political spoils.

If a Port modernization fund is structured simply as a government bank account controlled by changing political appointees, it will fail.

This risk is particularly acute given that the NPA is now a high-stakes fiscal engine, having formally projected a staggering ₦1.489 trillion revenue target for the 2026 fiscal year during its recent budget defense before the National Assembly.

To succeed, we must move away from government custody and engineer “political-proof” maritime structures where true insulation does not come from isolating an asset from the state entirely, but from wrapping it in legal, financial, and institutional guardrails that make political meddling legally impossible and financially punishable.

The first step to safeguarding maritime revenues is removing them from the direct custody of political agencies.

A Port Modernization Sinking Fund must never sit on the balance sheet of the NPA, nor within the Treasury Single Account (TSA) where it can be swept to fund unrelated national deficits.

Instead, a portion of the NPA’s revenue stream must be legally diverted into an independent, bankruptcy-remote Special Purpose Vehicle (SPV) incorporated under the Corporate Affairs Commission (CAC).

Once the funds hit this SPV, they are legally separate from the government, meaning a sitting Minister or Managing Director cannot simply sign a memo to withdraw cash to fund a political project without violating corporate governance laws and triggering immediate litigation from asset trustees.

Furthermore, the historic failure of the CVFF lies in bureaucratic custody where politicians and regulators hold the keys to the vault.

For a Port sinking fund to work, custody must be handed over to a consortium of independent, private sector institutional trustees and asset managers who operate under strict fiduciary duties.

Their sole mandate is to protect the fund and ensure capital is deployed exclusively for the specific infrastructure projects outlined in the fund’s charter—such as quay wall reconstruction or digital single window infrastructure—leaving them legally bound to refuse any political demands for diversion under the full weight of investment laws and the Investment and Securities Act.

The most effective way to keep politicians honest is to introduce aggressive counter parties who will sue if rules are broken, which is achieved by using the retained Port revenues inside the SPV as equity to issue local currency maritime infrastructure bonds on the financial market dealers quotation (FMDQ) or Nigerian Exchange (NGX) to attract institutional investors like pension fund administrators (PFAs).

When Nigeria’s pension funds invest trillions of Naira into our Ports, the fund ceases to be an opaque government kitty and becomes a publicly traded, highly regulated instrument where the Securities and Exchange Commission (SEC) and powerful institutional investors will demand quarterly audits, strict disclosures, and timely debt servicing, ensuring no administration risks defaulting on local bonds held by millions of working Nigerians just to satisfy a short term political interest.

To cement these structures, the National Assembly must provide legislative teeth through targeted amendments to the Fiscal Responsibility Act and the Infrastructure Concession Regulatory Commission (ICRC) Act, including an “Irrevocable Standing Payment Order” (ISPO) or an automated revenue split mechanism.

The moment Port tariffs are paid by shipping lines via the digital National Single Window, the technology must automatically split the funds, sending 70% to the Federation Account and 30% directly to the private led infrastructure SPV, effectively hardcoding this split into the Port’s digital architecture to eliminate human discretion and political approvals from the collection loop entirely.

Ultimately, we cannot allow the mismanagement of the past to paralyze our economic imagination for the future.

The CVFF failed because it was designed as an insular, government controlled honeypot, but a Port Modernization Fund built on private trusteeship, SPV structures, and capital market accountability changes the game entirely.

If Nigeria is to successfully modernize the century old Apapa Port and fix the decaying berths at Tin Can Island, we must build financial structures that outlast political administrations, treating financial engineering with the same urgency as civil engineering to ensure that our maritime wealth is locked securely in service of the nation’s trade, far out of the reach of political interference.

Chief Ibrahim Nasiru , a public affairs analyst, writes from

Abuja

Customs

Customs’ reforms, modernisation project excite Senate

Gloria Odion, Maritme reporter

The Senate Committee on Customs and Excise has commended the far-reaching reforms being implemented by the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, describing them as evidence of prudent investment of government resources to reposition the Service for greater efficiency, transparency and improved service delivery.

The commendation came on Thursday, August 6, 2026, during a two-day retreat organised by the NCS in collaboration with the Senate Committee on Customs and Excise to strengthen legislative oversight and review the Nigeria Customs Service Act.

As part of the retreat, members of the Committee toured the Customs House in Maitama, Abuja, where they were briefed on the Service’s ongoing modernisation programmes, technology-driven operations and institutional reforms.

Speaking after the tour, Chairman of the Senate Committee on Customs and Excise, Senator Isah Jibrin, said the visit offered lawmakers an opportunity to witness first-hand the transformation taking place within the NCS.

“We have heard about these reforms from afar, but today we have seen them ourselves.

“The transformation taking place in the NCS is remarkable, particularly in the deployment of technology, modern infrastructure and operational innovations that are repositioning the Service for greater efficiency,” he said.

Jibrin said the retreat had also enabled members of the Committee to gain a clearer understanding of how appropriated funds were being utilised by the Customs Service.

“When the NCS comes before the National Assembly seeking approval for capital expenditure, we now have a clearer understanding of what those resources are being used for.

“The reforms we have seen today clearly demonstrate that government funds are being invested responsibly to strengthen Customs operations, improve trade facilitation and enhance national revenue,” he stated.

Responding, the Comptroller-General of Customs, Adewale Adeniyi, attributed the progress recorded by the Service to the deliberate deployment of technology across various aspects of Customs administration and operations.

He said technology had become central to the NCS strategy for improving efficiency, transparency and service delivery.

“Technology helps us to work faster and more efficiently. We started by deploying digital solutions into personnel administration, postings, staff matters and pensions before extending them to our core operational responsibilities, and we will continue until virtually every aspect of Customs operations is technology-driven,” Adeniyi said.

The Customs chief also highlighted the deployment of advanced technology in the Service’s enforcement operations, including virtual shooting simulators, geospatial intelligence and digital surveillance systems.

“We are deploying geospatial intelligence to map our patrol routes and position our checkpoints more efficiently across the country.

“Combined with modern training facilities such as our virtual shooting range, these innovations will significantly strengthen our enforcement capabilities,” he explained.

Adeniyi further disclosed that several of the Service’s modernisation initiatives were backed by provisions of the Nigeria Customs Service Act, stressing that the NCS remained committed to implementing reforms that align its operations with the Federal Government’s broader economic agenda.

“The law requires us to modernise our operations. Initiatives such as the Authorised Economic Operator Programme, Advance Ruling, Time Release Study, scanner deployment and other technology-driven reforms are all backed by the provisions of the Nigeria Customs Service Act.

“Our responsibility is to continue implementing them to support the Federal Government’s reform agenda,” he said.

The Senate Committee’s commendation is expected to further strengthen legislative support for the NCS modernisation programme as the Service intensifies efforts to leverage technology, strengthen enforcement, facilitate legitimate trade and boost revenue generation.

The retreat also provided an avenue for lawmakers and Customs management to deepen their understanding of the operational realities of modern Customs administration and the legislative framework required to sustain ongoing reforms.

Analyses

The National Single Window illusion: Why phase two is dead on arrival

Chief Nasiru Ibrahim

Tomorrow on Monday Discourse with Nasiru Ibrahim, I am dropping part three of my maritime audit, ‘The Single Window Illusion: Why Phase Two is Already Grounded.

For months, our regulatory class has hidden behind the glossy public relations of automated portals, celebrating the ‘take-off’ of Phase One.

But a cold look at the raw data reveals a terrifying truth: we are running a digitised facade over a broken, manual rent-seeking ecosystem.

Tomorrow , I shall be exposing the massive operational disconnect between the new B’Odogwu Customs System and the brutal, manual greed at the terminal gates.

You cannot claim to master trade velocity when parallel checkpoints, erratic human intervention, and bridge shakedowns are hardcoded into the Apapa corridor.

Tomorrow, we strip away the illusions and confront the structural arithmetic holding our supply chains hostage.

Lock your dials on this platform. The clock is ticking.

Customs

Customs courts Senate to amend Customs Act for enhanced operational capacity

Funso Olojo, Editor

The Nigeria Customs Service (NCS) has called on the Senate to amend critical provisions of the 2023 Customs Act to bring Nigeria’s customs administration in line with rapidly evolving global trade practices and strengthen the Service’s operational capacity.

The appeal was made at a retreat organised by the NCS for members of the Senate Committee on Customs, Excise and Tariffs on August 5, 2026, where lawmakers were briefed on the Service’s ongoing modernisation programme and the need for stronger legislative oversight and statutory support.

Speaking at the retreat, the Comptroller-General of Customs, Adewale Adeniyi, urged the lawmakers to review the legal framework governing customs administration, arguing that Nigeria’s trade laws must evolve alongside emerging trends in international commerce and customs management.

Adeniyi said effective legislative oversight could only be achieved when lawmakers had a comprehensive understanding of the changing nature of customs operations and the reforms being implemented by the Service.

He explained that the retreat was designed to bridge existing information gaps and provide members of the Senate committee with a clearer understanding of the transformation taking place within the NCS.

According to him, such understanding would enable the lawmakers to provide informed oversight and the statutory backing required to sustain the Service’s modernisation agenda.

“While some provisions had worked as intended, others had proved difficult to apply or had been overtaken by the rapidly changing trade environment.

“We are requesting considerable amendments to ensure the Act remains relevant to fast-moving trade policies and supports the Service’s modernisation agenda,” Adeniyi said.

The Customs boss stressed that although the Service currently enjoys strong support from President Bola Ahmed Tinubu and the NCS Board under the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, lasting reforms require statutory protection that goes beyond the tenure of any particular administration.

He said legislative amendments would provide the institutional stability required to consolidate the gains of the ongoing reforms and ensure that future administrations could build on the foundation already being laid.

Highlighting the breadth of the NCS modernisation programme, the Deputy Comptroller-General of Customs in charge of Human Resources Development, Tijani Abbey, outlined several initiatives being implemented to transform customs administration.

Among them are the deployment of the indigenous B’Odogwu Trade Management System, intelligence-driven post-clearance audits, the Authorised Economic Operator (AEO) programme, coordinated border management and end-to-end digital process integration.

These initiatives, he explained, are aimed at improving revenue collection, facilitating legitimate trade, reducing human intervention in customs processes and strengthening national security.

The reforms are also expected to enhance transparency, improve compliance and make Nigeria’s trading environment more competitive by aligning customs procedures with international best practices.

Responding, the Chairman of the Senate Committee on Customs, Excise and Tariffs, Senator Isah Jibrin, commended the NCS for surpassing its revenue targets despite the operational challenges confronting the Service.

Jibrin assured the Customs management that the National Assembly was prepared to provide the legislative support required to consolidate the Service’s achievements and address identified constraints.

“What you need to do is to identify your challenges, try to address them as much as possible, so as to have a much more robust, inclusive, and beyond-budget performance. Where you require legislative backing, please do not hesitate to call on us,” Jibrin advised.

The Senate committee chairman also congratulated Adeniyi on his re-election as Chairperson of the World Customs Organisation (WCO) Council, describing the feat as a reflection of Nigeria’s growing influence in global customs administration and international trade.

The retreat therefore marked a significant step towards closer collaboration between the NCS and the legislature, particularly at a time when Nigeria is seeking to modernise its trade architecture, increase revenue mobilisation and improve the efficiency of its borders and ports.

For the Customs Service, the proposed amendment of the Act is not merely about changing outdated provisions but creating a legal framework capable of supporting a technology-driven, intelligence-led and globally competitive customs administration.