FG approves $3.1 billion for automation of customs’ operations

The President Muhammadu Buhari-led federal government has approved the sum of $3.1 billion for the automation of the operations of the Nigerian Customs Service (NCS).

The approval was in pursuit of the diversification of the economy with a target of $176 billion revenue from the $3.1 billion concessionary investment.

Minister for Finance, Budget and National Planning, Zainab Ahmed, made this known during a press briefing after the Federal Executive Council (FEC) meeting on Wednesday.

Ahmed explained that the $3.1 billion that was approved by the Federal Executive Council was an anticipatory contract for customs’ full-fledged transformation.

According to her, “The purpose of the memo we presented to Council was for a project that will enable the complete automation of the Nigeria Custom Service processes and procedures using the application and information and technology in all aspects of Customs administration.

“So, Council today ratified Mr President’s approval for the PPP concession for a 20-year period to Messers E-Customs HC Project Limited as a concessionaire for the delivery of customs modernization project.

“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 they will look over the investment in the concessionary period of 20 years.’’

“The key point is that it is not costing the federal government one thing, the 3.1 billion dollars being proposed will be sourced by the sponsors and the partners.’’

The minister added that the main objective is to completely automate every aspect of the customs business and institutionalize the use of smart and emerging technologies to boost the statutory function of the Nigerian Customs Service in the area of revenue generation.

She added that the project would be financed through a Public-Private Partnership (PPP) under a concessionary period of 20 years.