This announcement was made via a press release issued by Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, on Tuesday. It follows thorough discussions with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other significant stakeholders.
The purpose of this suspension is to allow for in-depth consultations with relevant parties to enhance the framework for the Act's implementation.
This policy change coincides with the conclusion of contract agreements with service providers like Webb Fontaine, who were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
Addressing Funding and Operational Challenges
The earlier system, which separated the 1% CISS from the 7% cost of collection, led to inefficiencies and funding shortfalls in customs operations modernization. The NCSA 2023 was introduced to rectify these issues by consolidating the funding structure under a provision that stipulates “not less than 4% of the Free-on-Board value of imports.”
This new framework is anticipated to establish a more sustainable funding model for essential customs operations, technological improvements, and modernization efforts.
During the suspension period, the NCS will concentrate on optimizing the management of this new revenue framework while ensuring its implementation aligns with national economic priorities and trade facilitation goals.
Technology-Driven Modernization and Trade Facilitation
The NCSA 2023 empowers the Nigeria Customs Service to spearhead modernization through a range of technological advancements. Section 28 of the Act requires the establishment and upkeep of electronic systems to ensure smooth information exchange among the NCS, other governmental bodies, and traders.
In line with its digital transformation strategy, the Service has already rolled out several innovative solutions, including the newly introduced B’Odogwu clearance system. This system has markedly reduced clearance times and increased transparency in the importation process.
Additional significant modernization efforts specified in the Act include:
- Single Window Implementation (Section 33): A unified digital platform designed to enhance trade facilitation and eliminate bureaucratic hurdles.
- Risk Management Systems (Section 32): Utilizing data analytics and artificial intelligence to refine risk assessment and bolster security at entry points.
- Non-Intrusive Inspection Equipment (Section 59): The introduction of scanning technologies to accelerate cargo clearance while reducing the need for physical inspections.
- Electronic Data Exchange Facilities (Section 33(3)): Improving interoperability and enabling real-time data sharing among trade participants.
These initiatives are anticipated to enhance Nigeria’s trade competitiveness, boost customs efficiency, and reinforce anti-smuggling efforts.