ShareTweetEmail0shares Zainab Ahmed , Finance Minister   The  sum of $176 billion is to be realized by Nigeria as the  projected revenue from the... $3.1bn Customs Automation Project  to Yield  $176 bn Revenue

zainab ahmed

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.

 

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