Nigeria: Customs Trade Modernization Project Will Cut Revenue Leakages By 20 Percent - Promoters

9 January 2025
Vanguard (Lagos)
By Godwin Oritse

Promoters of the Nigeria Customs Service's (NCS) Trade Modernization Project (TMP) have said that the initiative will reduce revenue leakages by 20 per cent once fully implemented.

Recall that the Federal Government and Trade Modernization Project Limited signed a 20-year Concession Agreement on 30th of May 2022 to provide best in class technology for the implementation of a paperless Customs at the Nigeria Customs Service.

The modernization of the Customs is being promoted and to be implemented by a Special Purpose Vehicle, SPV, called Trade Modernization Project, TMP.

Speaking to Vanguard on the sidelines of a meeting between the Customs Service leadership, headed by the Comptroller General of the NCS, Adewale Adeniyi and management of TMP, Dr. Jumai Ajijola, Managing Director, TMP, Ajijola explained that the primary aim of the project is to provide a comprehensive solution to the NCS's administrative and operational functions.

This will ensure more effective tariff collection, secure borders, combat smuggling, and manage data on goods moving across Nigerian borders.

Ajijola further emphasized that TMP will not only establish the technology infrastructure needed for the project but also implement the technology across all NCS facilities according to a set timeline. She added that the initiative will also include capacity-building efforts across the organization, ensuring sustainable implementation within the NCS.

"By the time the project is fully operational, it will encompass all customs functions, including duty collection, clearance operations, and anti-smuggling efforts," Ajijola said.

"Customs modernization projects are being adopted globally to streamline and harmonize trade, making cross-border commerce more efficient."

The project is expected to significantly increase the Federal Government's revenue profile, with projections indicating it will generate over $176 billion during the life of the concession. The modernization effort will align Nigeria with international standards, deploying advanced technology to support global trade.

Ajijola highlighted that the project would also contribute to the Federal Government's economic diversification by improving cross-border trade. She pointed out that the $5 billion investment required for the project will not only help boost revenue but also free up resources for infrastructure development and other vital sectors of the economy.

Read the original article on Vanguard.

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