Imperative of e-customs for productivity

THE Nigerian Customs Automation Scheme, led by Bionica Technologies, is a presidential initiative on customs modernisation, e-customs project, and the establishment of a digital/paperless customs administration. It will change significantly, the mode of administration and results from the running of Nigeria’s 82 border stations.  The Customs Automation Scheme will deliver a single window model of cargo clearance. Other benefits include paperless customs administration, e-payment of customs duty, e-container loading, electronic risk-board inspection, single platform link to all other government agencies and e-permit exchange among operators. The scheme will reduce delays, bottlenecks and corruption within the ports. More crucially, it will increase productivity, national security and revenue generation by the Customs.

Bionica Technologies W.A. Limited is the lead partner of the consortium to manage the concession. Other partners include Paramount Group, Huawei Technology, Smiths Detection, Larsen & Toubro Group and Nuctech of China. Moreover, the partners are mobilising about $450 million in investment to ensure the success of the turnaround programme. President Muhammadu Buhari approved the concession in September. It follows the success of the consortium in a competitive bidding process conducted in 2016. Ninety-four companies responded to the request for bids by the Nigeria Customs Service. The service pre-qualified 15 companies and invited them to make presentations on their solutions. Bionica Technologies W.A. Limited topped. The Nigeria Customs Service commenced a modernisation process in 2013. The goal remains to change the narrative of poor or under-performance associated with the service. The Customs Automation Programme will guarantee the evolution of integrated border management module with a centralised and automated Customs Risk Management system.

The system would run real-time scanning. It will also ensure full automation of all customs procedures and business. Integral to the system is full automation of Customs operations using the latest smart technologies supplied by original equipment manufacturers. There would also be strategic capacity development for the personnel of the service.  Stakeholders in the maritime sector agree on the imperative of leveraging technology to drive efficiency and productivity at the ports. They support the programme introduced in 2016 as part of the seaport reform agenda adopted by the Federal Executive Council.

Dr. Dakuku Peterside, Director-General of the Nigerian Maritime Administration and Safety Agency affirms that port automation and digital solutions are potential game changers not only for cargo throughput but also profitability. Peterside cites a global benchmarking study conducted by SAP found that ports that leverage technology to drive productivity improvements enjoy 36 per cent higher operating margins than their peers. The result informs part of the resolve of the Federal Government to institute a single window operation in Nigerian ports. In October, President Buhari approved a $300 million investment in the digital e-Customs project. The Infrastructure Concession Regulatory Commission, ICRC, and the NCS are working closely with the consortium to ensure successful implementation of the project.

The NCS has been modernising since 2013 and has made some remarkable progress. For instance, it recently announced increased revenue of N1.125 trillion due to electronic payment of duties and taxes generated from January to October 2019. The Bionica Consortium asserts that a fully automated system would increase the revenue exponentially.  Job creation is another feature of the port automation programme of great interest to stakeholders. It will also minimize smuggling as well as build partnerships with investors. There is guarantee of external finance having no immediate cost to the NCS for all projects.   It is pertinent to note that there is no linkage between the over N30 billion in the comprehensive import supervision scheme accruals which is in the custody of the Central Bank of Nigeria, CBN and the concession scheme.   Companies in the Bionica Consortium have rich pedigrees.  For instance, the Lead Partner of the modernization exercise, Bionica Technologies W.A Limited, specializes in system integration for advanced communications, government defence and security electronics. It also offers monitoring and other allied strategic and tactical requirements as well as expertise in various other areas of information technology. Bionica has both local and international original manufacturers as partners. They include Smiths Detective, a world-leading designer and manufacturer of sensors that detect and identify explosives, weapons, chemical agents, biohazards, nuclear and radioactive material.

Similarly, the Africa Finance Corporation, IFC, has also hinted that it will be supporting the programme. To drive the programme more efficiently, the consortium will partner with the Nigeria Customs Service, the government agency whose leadership has indicated keen interest   in fast-tracking the e-custom strategic plan as envisaged. The 20-year concession arrangement provides latitude for long-term planning for the project. Various ports around the world have successfully run similar programmes. Success stories include Singapore, China, Qatar and Venezuela.

• Ayodele provides no affiliation