Special Report:  NCS, Huwei Technologies Concession Agreement lmpact Positively On Trade Facilitation, Revenue Collection

 By Stephen Ubanna

 When Hameed Ali, retired Army Colonel and immediate Past Comptroller General of the Nigerian Customs Service, NCS, during former President Muhammadu Buhari’s administration, entered into a 20- year -year Concession Agreement with the Asian country of China firm, Huwei Technologies, for modernization and automation of Customs’ operations and border security in 2022, nobody took him seriously.

This is because of the inefficiency of Webb Fontaine operated Nigeria Integrated Customs Information System, NICIS, in which the service had repeatedly lost millions of naira due to saver failures. But the retired Army Colonel who was said to have had the backing of the then President Buhari had stood his ground despite the opposition from several quarters.

  He was said to have led the service to sign the North American country of the United States, US, 3.2 m, Concession agreement with a revenue collection of US $176m within the 20 years of the agreement. Ali, may have been removed from office as the CGC, by the incumbent Bola Ahmed Tinubu, before the impact of the service trade Modernization Project, TMP, could be felt on the service operations.   

  Bashir Adewale Adeniyi, MFR, who had been in the picture of the deal as a member of the former CGC’s   Management Team of the service before his appointment as a replacement for Ali, in June, 2023, was said to have followed up the Project to ensure that the Chinese firm keep to the terms of the contract and deliver on schedule.

Ali: former CGC, who initiated TMP, for NCS, now reaping the benefits

As a prelude to meeting the demand of the NCS personnel, on the TMP, described as an ‘’integration of applications, platforms, and software involving all-in one nationwide import-export maintenance system’’, the TMP, technical team were said to have been working round the clock to live up to expectation as a world class Technology company.

Bearing in mind that the solution to Nigerian Trade problems requires the company to provide all the facilities   on Customs operations at the seaports and excise processes, manifest processing, licensing, revenue collection, anti-smuggling activities and information sharing among others may have informed why the TMP, technical team were said to have given the project their best.

It would be recalled that based on the Concession agreement, TMP, which is acting out the script of Huwei Technologies, had been mandated to provide these core services which includes Unified Customs Management system, UCMS, Trade Portal, Electronic Cargo Tracking System, ECTS, Cargo Release System, Enforcement System, Telecommunication, video Surveillance and Connectivity, Border Management System NII, HRM, DMS and AMS, to the service.

PTL, used as pilot phase for B’Odogwu system developed by NCS

Note that he Chinese firm also had a mandate ‘’to upgrade and update the Customs core Services and Infrastructure.  This is in addition ‘’to technology upgrades/updates, enhanced capacity building, project documentation, Reporting, Publication and Archiving’’.

Using Port Multi-services Terminal Limited, PTML, as a pilot phase, Trade Modernization Project Limited, which was a fallout of the 20-year concession agreement for the implementation   of the Trade modernization project was said to have hit the ground running.

Barely five years of Webb Fontaine which had been relieved of its contract by the Katsina state born former President Buhari and replaced by Huuwei Technologies, a Chinese firm, which had floated the TMJ, almost all business processes of the NCS, across the country are gradually being automated.

 Although, Coloel Ali, rtd, had led the service, to sign a 20-year Concession agreement with Huwei Technologies of China, for the Modernization and automation of Customs operations, which should have made the officers to relax and leave the job to be handled by the TMP, officials, but the reverse was the case.

  Acting on instructions, the Customs Information Communication Technology, ICT, personnel may have shown that their years of working closing with Webb Fontaine officials in overseeing the NICIS system was not a waste.

 Given the key component of the TMP   which has to do with ‘’Time Release Study,TRS, Authorized Economic Operator, AEO, , Non-Intrusive Cargo Inspection, expected to improve Revenue Collection, may have encouraged the ICT officers to develop the B’Odogwu, digital trade platform to replace NICIS 11.

Unconfirmed report shows that Huwei Technologies technical team had provided the key features like Time Release Study, and AEO, for the B’Odogwu system through its software -defined Wide Area Network, WAN, solution, which was said to have enhanced the service performance and, cost -efficiency.

There is no gain saying the fact that the B’Odogwu facility developed registration portal which is aimed at unifying Customs processes across the country, both at the seaport, airports and Land border stations   into a centralized digital hub had kept to it.

A senior officer who spoke to The Value News Magazine online on condition of anonymity had said that  at APM Terminal, described as one biggest private terminal in the West and Central African subregion has  truly benefitted from the  B’Odogwu facility, stressing  that  if it can be expanded to all other Customs Formations across the country the service  monthly  revenue collection from imports and exports at the seaports, airports and Land border stations would be on the increase.   

This is because of the TMP unified platform, transparency and compliance, Single national entry Window and the modernized Customs operations.

It was said to have streamlined the processes of clearing cargoes at the nation’s ports of Port Multi-services Terminal Limited, PTML, Apapa and Tin-can-Island ports. It was said to have also reduced the paper work and enhanced the decision-making process of the of the Area Controllers of the three Lagos based Commands that had been linked to the indigenous Customs technology believed to to have reflected on their revenue collection in the first three months of 2025.

With what had been experienced at PTML, Apapa and Tin-can Island Command, the officer noted that   ‘’there have been improved transparency and c ompliance by traders since the introduction of the B’Odogwu platform compared to the NICIS, operated by Webb Fontaine.  He is right.

Compt. Olomu: B’Odogwu system gives further boost to Command’s monthly revenue collection

Apapa Command, under the close watch of Comptroller Babatunde Olomu, which had been linked to the indigenous technology   was said to have collected from import and export duties the sum of N753.8 billion in the first three months of 2025 alone, While his Counterpart at Tin-can Island  Port, TCIP,   Command, Compt. Frank Okechukwu Onyeka, Which had been connected to the B’Odogwu as well was said to have also  collected and Paid into the Federation  account N347.8 billion.

  Tenny Mankini Daniyan, of PTML, had boosted that the Command had Collected a total sum of N189.5 billion, which was said to have been paid into Federal Government coffers between January 1, 2025, and March, 31, 2025.

 The cumulative revenue collection of the three Commands that had been hooked to the B’Odogwu facility in the first quarter of 2025, had been put at about N1.291 trn. This is very encouraging as Adeniyi, the Customs Comptroller General, had revealed that the service, as a whole, had collected N1.751 trn from import and export duties in the first three months of 2025, which had been paid into the Federation account.

An elated CGC, had said that that the service, under his Leadership had exceeded   the first quarter of 2025, benchmark   of N1.645 trn, by N106.5 billion or 29.96%, stating that within the same time lag in 2024, the service had only collected and paid into the Federation account the sum of about N1.35 trn.

The Customs helmsman who could not hide his feelings had said that going by the service’s month -by- month revenue collection analysis which is very revealing, it is a clear indication of a growth trajectory in its revenue collections in the months ahead. He had alluded to the   to the January’s collection of N647.880 billion, which not only surpassed its monthly target of N548.33 billion by 18.12%, but also showed   a remarkable 65.77% year-on – year growth.

The CGC who had continued to receive accolade from Nigerians over his impressive performance in office over the last one year, had said that the service February’s revenue collection of N540.N105 billion, also exceeded its Federal Government, FG, target by 1.3%   while achieving 19.97% growth over 2024 figures.

  The Customs Chief noted that the month of March also   maintained a positive trend with about N563.512 billion, delivering 2.7% above target and an 11.22% improvement over March figure in 2024. The Customs Chief was said to have told those that cares to listen that ‘’the improved revenue collections of the service within the first three months of 2025, clearly substantiate   the service effective measures ‘’to curb revenue loses while streamlining compliant trade’’.

He was said to have stated clearly   the 29.96% annual increase and steady monthly collections confirm that the service strategies for collection revenue and B’Odogwu system are working efficiently.  ‘’We ‘ll maintain this momentum of revenue drive through rigorous enforcement of government fiscal policy and strengthened partnership with stakeholders’’, he had said.

Given an insider information, on why the Command revenue collection had been on the increase since the beginning of the 2025 and now, the Custom helmsman, had attributed it to ‘’the service continued striving to balance its revenue collection and enforcement responsibilities with the need to automate Legitimate trade’’.

He had confirmed that during the first quarter of 2025, the service had processed a total of 327,928, Single Goods Declarations, SGDs, for imports, handling cargoes with a total   tonnage of 4,910,283,.33Kg and Cost Insurance Freight CIF, value of N14,807,960,201,235.00.

According to him, first quarter of 2025, revenue figure, represents a 5.28% increase in the number of import transactions compared to the 311,492 SGDs, processed in first quarter of 2024, stressing that ‘’ it reflects a growing confidence in the country’s trade facilitation measures’’, particular, the B’Odogwu system, which had incorporated the UCMS, TRS, and AEO components.  

He admitted that the service could have done much better in terms of its revenue collection in the first quarter of 2025, but not for ‘’foreign exchange volatility’’ and several other challenges Which had continued to affect trade patterns and Customs Valuations at the seaports, airports and Land border stations.

 The Customs Comptroller General, who could not hide his feelings had lamented that the service recorded 62 exchange rates, ranging from the minimum of N1,477.72 to a maximum of N1,569.53   to one US dollar, showing an average exchange rate of N1,521.59 to the US one dollar, in valuing imports in the first quarter of 2025, alone.

The CGC, had said that these volatile foreign exchange rates   had continued ‘’to create uncertainty for traders and   affects the predictability of import costs’’.  He may have gladdened the heart of the importers with their agents, when he disclosed that the service has been working closely with the Olayemi Michael Cardoso, led Central Bank of Nigeria, CBN, and Wale Edun, minister of Finance and Coordinating minister of the economy, ‘’to implement measures aimed at stabilizing the country’s foreign exchange rate for import declarations’’.

Aware that it is not good enough for the service to only be collecting money from the society without giving back to the same society what it is collecting from it may have encouraged the CGC, to Launch the service Corporate Social Responsibility, CRS, Programme, on March 20, 2025, Abuja, the Federal Capital Territory, FCT.

      The CRS, which has the backing of the Nigerian President   was said to have identified six key areas as its priority: Education, Health, Environment, Food Security, Social Investment and creative economy. So far, the NCS, CRS Unit, had activated the Creative Economy as 2,000 students were said to have received 10,00 note books, 2,000 school bags, 4,000 pens while Government Secondary School, Abuja, FCT, where the CRS Programme was Launched was said to have benefitted from the Customs   Close Circuit Television, CCTV, security systems and solar-powered lighting.

The NCS, CRS Unit was said to have also initiated   a medical outreach service   that was said to have benefitted 1,000 Community members with basic health care facilities and provision of anti-mosquito nets, thus demonstrating its immediate impact on the people within a short period of existence. Vintage Adeniyi.         

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