REPS-Failing To Modernize E-Customs Costs Nigeria $8.810 Billion Yearly

Economic Confidential

February 22, 2022

REPS- Failing To Modernize E-Customs Costs Nigeria, $8.810 Billion Yearly

According to the Nigerian House of Representatives, a lack of custom modernization projects by the Nigerian Custom Service has led to a loss of $8.810 billion in revenue each year.

Rep. Leke Abejide, Chair of the House Committee on Customs and Excise, revealed the information at a public hearing of the Joint Committees on Customs and Excise, Finance, and Banking Currency, where Stephen Okon, Director of Home Finance, represented Mrs. Zainab Ahmed.

The Ministry revealed that an ongoing court case delayed implementation of the project.

What the lawmaker is saying

According to the lawmaker, the project will generate $176.2 billion during its concession period of 20 years. In addition to automating the activities of the NCS, it will also prevent revenue leakages.

The Finance Minister responded that there were pending court cases which had delayed the implementation of the project.

According to the minister, “The suits were three and as such the project could not continue the pending cases were impeding the commencement of the e-Customs Project.”

The Minister added that to speed up the process of taking the project forward, the ministry is working with the Office of the Attorney General to conclude the arbitration quickly.

“This can settle all the pending matters and allow the e-Customs project to start without further delay,” she added.

Furthermore, the Comptroller General of Customs, Col. Hameed Ali (RTD), represented by Assistant Comptroller General (ICT), Galadima Saidu, stated that the earlier selected contractor, Adani Mega System Ltd, was prevented from advancing the project due to legislators’ knowledge of the situation.