Zainab Ahmed , Finance Minister
The sum of $176 billion is to be realized by Nigeria as the projected revenue from the end to end automation of the Nigerian Customs Service(NCS) , which the Federal Executive Council(FEC) has approved for $3.1 billion.
The Minister of Finance, Zainab Ahmed, who disclosed this at the end of the 14th virtual FEC meeting presided by President Muhammadu on Wednesday, said that the approved sum is for a concessionary period of 20 years.
The Minister said that the main objective of the 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 Service, in the areas of revenue generation , trade facilitation and enhancement of security.
She disclosed that the consortium, the PPP group that has been approved to handle the project , are led by Messers Y Technologies with four other members
According to her, the Bionica Technologies West Africa Limited, Bargain Securities and Supplies Nigeria Limited, are the lead sponsor and co-sponsor of the project respectively ,while the Africa Finance Corporation (AFC) and Huawei Technology are the lead financier and technical service provider.
Ahmed said the project will not have an immediate cost to the government as the investors are providing all of the financings , while the revenue will be deployed in three phases , even as the the lead financier and technical service provider will look over the investment in the concessionary period of 20 years.
Commenting on the project, Lai Mohammed, the minister of information and culture, 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”.
The minister said the project will improve Customs’s clearance efficiency, minimise government allocation to the service for tasks already included in the digitisation process.
The process is also expected to eradicate tax and duties’ evasion through e-Port, logistic monitoring and electronic cargo tracking resulting in increased revenue generation.