FG Ratifies $3.1bn Customs Automation Concession Project

• About
• Latest Posts

Nwolu Obiajulu

Obiajulu Nwolu is an established writer at africannewstoday.com. He is passionate about African affairs. He loves writing about interesting facts relating to the African continent and enjoys sharing his knowledge with others.

Latest posts by Nwolu Obiajulu (see all)

• INEC Issues Certificate of Return to Governor Obaseki After Re-election - September 22, 2020
• Eagles Coach Rohr Names Squad for Cote d’Ivoire, Tunisia Friendlies - September 22, 2020
• APC Accepts Defeat, Admits Edo Election Free, Fair - September 22, 2020

The Federal Executive Council (FEC) has ratified the concession of the automation project of the Nigeria Customs Service (NCS).

Minister of finance, budget and national planning, Zainab Ahmed said the automation project will cost $3.1 billion. She noted the project will be concessioned for 20 years.

The council also approved N13.122 billion for automation of airports in Lagos, Abuja, Kano and Port Harcourt and consequent transformation of the airports from their current analogue to full digital operations

Ahmed said, “The main objective of this project is to completely automate every aspect of the customs business and to institutionalize the use of smart and emerging technologies that will enhance the statutory function of the Nigerian Customs Service in the areas of revenue generation as well as trade facilitation and enhancement of security.”

“The consortium, the PPP group that has been approved are led by Messers Y Technologies with four other members.

“The Bionica Technologies West Africa Limited, Bargain Securities and Supplies Nigeria Limited, these are lead sponsor and co-sponsor. We also have The Africa Finance Corporation (AFC) as the lead financier and Huawei Technology as a technical service provider.

“This is a project that will not have an immediate cost to the government, the investors are providing all of the financings and this revenue will be deployed in three phases and there will look over the investment in the concessionary period of 20 years.”

In his reaction, Minister of information and culture, Lai Mohammed 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”.

Mohammed stated that the project will enhance the clearance efficiency of customs as well as minimise government allocation to the service for tasks already included in the digitisation process.

Source: Cable