FG approves $3.1bn for Nigeria Customs’ automation

By Andrea Samuel

The sum of $3.1 billion has been approved by the Federal Executive Council (FEC) for the end-to-end automation of the Nigeria Customs Service (NCS).

This was disclosed by Nigeria’s Minister of Finance, Zainab Ahmed, at the end of the FEC virtual meeting presided over by President Muhammadu Buhari in Abuja on Wednesday.

Ahmed noted that the fund would have a 20 years concessionary period and reserved for investors with a $176bn revenue targeted.

“The main objective of this project is to completely automate every aspect of the Customs business and to institutionalise the use of smart and emerging technologies that will enhance the statutory functions of the Nigeria Customs Service in the areas of revenue generation as well as trade facilitation and enhancement of security.

“The total cost of the project is in the sum of $3.1 billion and the consortium, the PPP that has been approved is led by Messrs Huawei technologies with four other members.

While giving a breakdown of the project funding, the Finance Minister stated that a schedule of overtime payment will be paid to the investors subject to negotiation with the Federal Government.

“This investment of $3.1 billion is broken down into capital investment of $1.2 million that will be done in three phases over 36 months by these investors and $1.8 million is our projection of the operational cost over the 20-year period of the implementation of this project.

“This project has the potential to yield up to $176 billion of revenue from the project and the consortium that are providing these investments are going to be paid overtime according to the schedule that will be negotiated for their investments including their profits and cost of funds,” she added.

Speaking further, the Minister noted that the upgrade of safe towers in Lagos, Kano, Abuja, and Port Harcourt airports also got the approval of FEC, totalling N13.122 billion while adding that the analog systems in the airports will be upgraded to digital with weather reports to be transmitted real time as against the previous hourly transmission.

There was a call on Ministries, Departments, and Agencies (MDAs) to consult the Federal Government-owned Galaxy Backbone Limited before budgeting and that all payments should go to the Treasury Single Account (TSA).

This is also with an assurance that Federal Institutions will also get their Information Communication Technology (ICT) upgraded immediately.

The FEC also disclosed that an approval has been made for accommodation for National Drug Law Enforcement Agency (NDLEA) by purchasing a building at the Aviation Village in Abuja for N1.196 billion formerly owned by Chanchangi Airlines.

This, according to the committee, is aimed at boosting the fight against drug abuse.