Retired Colonel Hameed Ali, the Comptroller-General of the Nigeria Customs Service, inaugurated a $3.2 billion modernization project on Thursday, aiming to eliminate manual operations and fully automate the NCS.
During the inauguration of the Project Management Office in Abuja, Ali expressed his satisfaction with the project, emphasizing its purpose of enhancing the service’s processes and eradicating corruption. Trade Modernization Project Limited oversaw the execution of the project.
“This is a momentous occasion as we witness the implementation of cutting-edge technology. Today, we proudly look back on the journey we embarked upon in 2015,” said Ali.
Ali stated that the NCS opted for automation due to its numerous advantages, including improved efficiency, transparency, and effectiveness. The project would enable the NCS to adapt to market dynamics, automate operations, and generate revenue for the economic growth and well-being of Nigerians.
Despite the challenges faced during the project’s realization, Ali highlighted the determination, resilience, and foresight of the NCS.
“The inauguration symbolizes the NCS’s commitment to embracing the power of digitization,” he added.
Addressing concerns that the adoption of technology would lead to reduced employment opportunities, Ali dismissed such claims as unfounded.
He mentioned that the modernization of the NCS would actually necessitate the recruitment of more personnel to effectively cover the borders and ensure public security. Aligning with global practices was emphasized as a priority.
Saleh Ahmadu, Chairman of TMPL, disclosed that the project would involve a $3.2 billion investment over a 20-year period, with an estimated revenue generation of over $200 billion.
The first stage of the project secured $300 million in financing from financial partners, along with a $9 million cash-backed performance fund.
Ahmadu stressed the significance of capacity building within the project, stating that a substantial portion of the investment would be dedicated to enhancing the skills of the staff.
According to NAN, the e-customs project received approval from the Federal Executive Council on April 20.
Bergman Securities Consultant and Suppliers Limited were selected as the project sponsor, with Africa Finance Corporation and UFC serving as lead financiers, and Huawei Technologies as the primary technical service provider.
As part of the agreement, the concessionaire provided the government with $9 million (equivalent to N4.135 billion) as security for the project’s satisfactory performance.
Additionally, the concessionaire executed a debt facility worth $300 million (equivalent to N138 billion) to fund the initial phase of the project.
The revenue sharing arrangement entailed 45 percent of the accruals from the comprehensive input service scheme going to the concessionaire, while 55 percent went to the Federal Government.
Five percent was allocated to the Nigerian Responsible Action Scheme, with 75 percent designated for the Federal Government.