09, 2020 / 12:21 PM / by FDC / Header Image Credit: Nigerian Customs Service
The Federal Government has approved $3.1bn for the automation of the Nigerian Customs Service (NCS) operations.
The project will be funded through a Public Private Partnership (PPP). The aim is to automate all parts of the customs business (end-to-end) and fully institutionalize the use of advanced technologies to boost the functions of the NCS.
This will bring immense value to the country - particularly in the area of revenue generation.
The e-Custom modernization will lead to improvements in clearance efficiency, facilitate trade as well as boost the confidence of all stakeholders. As a result, revenue generated by the NCS is expected to increase exponentially to N66.88trn ($176bn) over a 20-yr period, which comes to N3.34trn ($8.8bn) annually.
This means the customs office would generate more than 10 times its previous revenue as leakages due to human intervention will be minimized. Customs contribution to Federal revenue was N357.99bn in 2019.
In the first five months in 2020, the government has generated N573bn, 59.87% of the revised 2020 budget of N957bn. With two devaluations of the official exchange rate since March, the NCS is likely to exceed its 2020 revenue target considerably.
The Federal Executive Council (FEC) also approved N13bn for the automation of safety equipment at Lagos, Kano, Abuja and Port Harcourt international airports.
The objective is to upgrade and refurbish the safe tower equipment in the aforementioned airports, which would boost efficiency and reduce the workload in the control tower and to automate what was, up till now, an analogue system.