A country’s economic survival largely depends on innovations at revamping strategic sectors to drive efficiency and competition, increase investment, reduce prices and expand the range of services. As such, the port, being a critical sector in revenue generation and window to any nation, is always at the forefront in engendering and advancing efforts to boost government revenue and national security.
Over the years, the port has experienced phases in its ownership, management and regulation. In fact, as far back as 2005, when the Nigerian government proved disappointing in the face of competing demands, Nigerian ports lacked the resources to fund substantial innovations in the sector. Consequently, the government transferred the provision of needed infrastructure services to the private sector, with accompanying sector reform and re-structuring before concession.
Many Nigerians who had businesses at the seaports before the concession went through difficulties, experiencing various forms of shoddiness, lack of plants and equipment, pilferage, bribery and allied vices carried out by miscreants called ‘wharf rats,’ populated by unscrupulous labour contractors who held ship masters and agents to ransom even after they have paid all official fees.
Some of these deplorable acts were then committed by seemingly bloated workforce of the seaports who collude with other despicable elements. The Nigerian maritime sector has underperformed, forcing the government to accede to the proposal by the federal Ministry of Transport to invite all interested international stakeholders in Nigerian seaborne trade to partake in a competitive bidding for private operators to run the ports purely as profit-oriented commercial ventures paying tax to the Federal Government. This was the basis of the seaport reform agenda adopted by the Federal Executive Council (FEC).
Fortunately, the government was able to achieve its goal and address some deficiencies with the concession of ports which made it to record impressive results. These notwithstanding, government and concessionaires realised the need to embrace modern customs’ practices and procedures to reduce the delays, bottlenecks and corruption within the ports.
In a bid to achieve this, the Comptroller-General of Nigeria Customs Service (NCS), Colonel Hameed Ali (retd), is keen in fast-tracking the e-custom strategic plan, an initiative which began in 2016 when 94 companies responded to a bid request by the NCS. In the exercise, 15 companies were pre-qualified and invited to make presentations on their solutions.
At the end, Bionica Technologies W.A. Limited came top, after a rigorous evaluation process. The company has five technical partners, including Paramout Group, Huawei Technology, Smiths Detection, Larsen & Toubro Group and Nuctech of China. The partners are mobilising about $450 million in investment to attain the complete turnaround programme. The Africa/Finance Corporation has indicated its interest in supporting the Customs automation programme.
The consortium will partner with the NCS by deploying direct capital investment, collaborating with original equipment manufacturers to develop and implement specific modernisation programmes.
Specifically, the consortium will implement full automation of all the Nigeria Custom’s business processes and procedures through the development and implementation of a robust and secured Information and Communication Technology (ICT) platform. This entails complete systems
integration with the current ICT platform, development and implementation of modern customs border stations, airports and marine posts. The marine posts would be utilised to develop the marine customs outfit.
Another part is to repair, upgrade and maintain the existing scanners, including installation of sophisticated fit-for-site new scanners suitable for site-type Customs operations in secured locations in class non-intrusive systems available all-year-round. The innovation will also focus on modernising strategic Customs infrastructure as well as delivery on full capacity-building programmes for officers with local and internationally-recognised professional certification across cadres in line with international best practices.
Stakeholders have applauded this impactful vision, insisting that they hold benefits for strong partnership with 100 per cent guarantee with external finance having no immediate cost to the Customs for all projects. Instead, will increase revenue for the government, create jobs, minimise smuggling and insecurity.
Similarly, the turnaround will ensure that the business of the Customs is fully automated, using the latest smart technologies with Original Equipment Manufacturers. It will also guarantee the evolution of integrated border management module with Centralised Automated Customs Risk Management System through real-time, remote scanning operations.
Pundits also believe that through this measure, there will be drastic reduction in leakages and other trade malpractices. There will be transparency, predictability and trade facilitation, while also addressing current national security challenges, through sharing of information data with other partner organisations. The innovation will also upgrade the NCS’s current ICT infrastructure, existing scanners and scanning operations and facilities.
On the long term, the direct capital investment through the proposed Public Private Partnership promises professional execution of the NCS’s modernisation programme. It will ensure that all collectable revenues are accounted for, in line with the Treasury Single Account policy of the Federal Government which in turn will shore up the pedigree of the Service among the best organised worldwide as it targets reducing incentive to leakages and discourage corrupt practices.
This innovation is neither new nor peculiar to Nigeria. Checks on the website of the Port of Singapore, the busiest container transshipment hub in the world, indicated a remarkable success of the solution proposed for the NCS. Similarly, Shanghai Customs is using the container image centralised analysis system at Shanghai Yangshan Port for its mega ports initiative. The Turkish Customs uses it for Centralised Supervision System. Singapore Customs has Inspection Smart
Clearance System. Qatar Customs deployed it for Container Image Centralised Analysis System, while the Venezuelan Customs has deployed same for its National Inspection Centralised Supervision System.
At this time, the Nigerian government is enforcing the temporary border closure policy to curb economic and security lapses, including sabotage the economic and safety of the people, the implementation of new e-customs policy is long overdue.
Adebayo writes via [email protected]
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