Frontline maritime lawyer and convener of the Oil Trading and Logistics Africa, Barrister Emeka Akabogu, has described as mind-boggling, the recent concession of the Nigeria Customs Digitalisation project, otherwise known as e-Customs, valued at $3.1bnn and awarded to a company, E-Customs HC Project Limited.
The Minister of Budget, Finance and National Planning, Zainab Ahmed, had told the Federal Executive Council on Wednesday that a project to digitalise the NCS’ operation was given to E-Customs HC Project Limited, a newly incorporated company, for 20 years at $3.1bn.
She claimed the project, described as public-private partnership with a consortium of firms, would yield $176bn within the period.
In a email to Financial Street, Akabogu said, “When the Federal Executive Council of the country has given is seal to a project such as this, I would assume that it has been given a 360-degree consideration, particularly relating to viability and value for money.
“There is no doubt that the country needs end-to-end customs modernisation, but it must be guided by the very reason for which it is needed, which is transparency and trade facilitation.
“Transparency will determine if the scope of the project justifies the investment. I certainly feel that the stated cost is not just high, it is mind-boggling. Automation will certainly involve new technology and innovation, but it is not rocket science. The project being contemplated will probably incorporate complete automation of data submission and verification processes for cargo clearance in a formalities single window.
“For increased assurance, it may be carried on blockchain technology and even involve deployment of smart contracts. I absolutely subscribe to it as it will resolve the current issues which bedevil import clearance efficiency including extortion by customs and under-declaration by importers. But it will not cost $3.1bn and does not need a 20-year concession.”
He noted that the more important element, which no reference was made to, is ensuring that the legal framework to drive the initiative is in place.
“Even though Nigeria is signatory to the Trade Facilitation Agreement, it is not implementing most of its highlight provisions which could greatly alleviate the challenges in the immediate term and which don’t need expenditure of ridiculous sums to achieve.
“One of the reasons is that the TFA provisions have not been given legal recognition in the CEMA. A draft of a new CEMA incorporating provisions to facilitate compliance with the TFA was developed some years ago, but was not conclusively taken through to enactment.
“Any investment in customs modernisation without starting from the legal framework and policy quick-wins will be cosmetic and self-defeating. I advise we start from that point and from there define the technology requirements to facilitate compliance which will be the basis for a procurement such as has been done. We have put the cart before the horse,” he added.
