The Federal Executive Council (FEC) has approved $3.1 billion for the end-to-end automation of the Nigeria Customs Service (NCS).
Minister of Finance, Budget and National Planning, Zainab Ahmed, made the disclosure at the end of the 14th virtual Federal Executive Council meeting, yesterday.
Ahmed, alongside the Attorney-General and Minister for Justice, Abubakar Malami; Works and Housing, Babatunde Fasola; Information and Culture, Lai Mohammed; Aviation, Hadi Sirika; and Communications and Digital Economy, Dr. Isa Ali Pantami, said the funds would be sourced solely by the concessionaires who would be in charge of the project for 20 years.
The Minister, who said government was targeting $176 billion revenue from the project, explained that the project would enable the complete automation of NCS processes and procedures using applications and information and technology in all aspects of Customs administration.
Ahmed said the project was awarded in favour of a firm, E. Customs HC Projects Nigeria Limited, for a concessionary period of N20 years: “The main objective of the project is to completely automate every aspect of the customs business and to institutionalize the use of smart and emerging technologies that will enhanced the statutory function of the Nigeria Customs Service in the areas of revenue generation as well as trade facilitation and enhancement of security.”
The Minister said the consortium, the PPP group approved for the project, was led by Messrs Y. Technologies, with four other members.
The Minister of Information and Culture, Alhaji Lai Mohammed in his explanation said, “The key point is that it is not costing the federal government one thing, the $3.1 billion being proposed will be sourced by the sponsors and the partners.”
Giving more information on the project, Mrs. Ahmed said, “The Nigerian Customs currently has some level of automation services but it’s not all of its serves that are automated. This is an end to end automation of all of Nigeria’s Customs Service processes and it’s going to bring huge value to the country. “
The $3.1 billion investment is broken down into capital investment of $1.2 million which will be done in three phases over 36 months by the investors and $1.1 million is the projection of the operational cost over the 20-year period of the implementation of the project.
“This project has the potential to yield up to $176 billion of revenue for the project and the consortia that are providing this investment are going to be paid overtime according to the schedule that is negotiated for their investments including their profits and cost. So this is the best possible way for Nigeria to roll out an important capital projects using funds from the private sector and providing service for the use of Nigerian people and the government,” she said.
