Minister Explains Why e-Customs Project Is Being Delayed
Finance Minister
• As lawmakers angry with customs for describing public hearing on the project curious
By Our Reporter
The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday explained why the Customs mordenisation project is being delayed, citing issues of court cases as responsible.
This was as members of the Joint Committees on Customs and Excise, Finance and Banking and Currency of the House of Representatives and an official of the Nigeria Customs Service clashed on the issue.
Mrs Ahmed who was represented on the public hearing on the issue by the Director, Home Finance, Stephen Okon, told members of the House Committees that though the contract was awarded in 2017 it was soon discovered that the beneficiary lacked the technical capacity to execute the project.
The public hearing was titled, “Need to Resolve the Debacle Between Central Bank of Nigeria (CBN)/Technical Committee on Comprehensive Import Supervision Scheme (CISS) and Adani Mega System Ltd Hindering the Take Off of Nigeria Customs Services E-Customs Modernisation Project.”
According to the Minister, this was apart from the company breaching the provisions of the contract.
She disclosed that the contractor, Messr Adani Nigeria Limited, leased the contract to Adani International Limited, which is a different company in the UK.
She said that besides, the company was registered four months after the contract was signed.
The Minister added that the cancellation of the contract was why the contractor, Adani Nigeria Limited, took the federal government to court claiming breach of contract.
She disclosed that the court was yet to decide on the case.
Before the Minister spoke, the Comptroller General (CG) of Customs, Col. Hameed Ali (retd) had clashed with the House Committee members on the issue.
Ali who was represented on the occasion by the Assistant Comptroller General (ICT), Galadima Saidu, had wondered why the case was being reopened by the lawmakers after it had been dispensed with by the same House.
Saidu had said that this development was curious, a development that angered the honourable lawmakers who demanded an apology which was offered.
Ali had given insight on the issue in line with what the Minister said as to the reason why the contract was canceled.
He was quoted by THISDAY Newspaper saying, “Adani Mega System Limited to ‘Build, Operate and Own’ scanning services infrastructure at designated ports across Nigeria, without consultation or knowledge of the Federal Ministry of Finance or Nigeria Customs Service. This information was leaked to the Service by a whistle blower who was introduced to the NCS by the House Committee on Customs, backed with relevant documents.
“Investigations carried out by the service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorised third party, Adani International Limited (UK), registered four months after the agreement was signed and the company has since been dissolved (Copy of the search result is hereby enclosed as Annex A)”.
The Chairman of the Customs Committee, Hon. Leke Abejide, in his opening remark observed that it has been back and front on the issue of e-Customs modernisation project.
He explained that the project was mainly to automate the customs administration, adding that $8.810 billion is to be generated annually.
He also said that the 20 year concession project is expected to fetch the federal government $176.2 billion while the concession cost of implementation was $3.1 billion.
He said, “The cost of concession implementation over a 20-year period is $3.1 billion and the project is projected to generate about $176.2 billion within the 20-year concession period. We equally understood the SPV is to recover their investment based on negotiated and staggered recovery strong ratio from the Comprehensive Import Supervision Scheme (CISS) and Nigerian Export Supervision Scheme (NESS).
“If you juxtapose the benefits that will accrue to the nation for the good of Nigerians with not doing the e-Customs at all, if it is crystal clear we are sitting on gold, but mistaking it to be wood.”
By Our Reporter
The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday explained why the Customs mordenisation project is being delayed, citing issues of court cases as responsible.
This was as members of the Joint Committees on Customs and Excise, Finance and Banking and Currency of the House of Representatives and an official of the Nigeria Customs Service clashed on the issue.
Mrs Ahmed who was represented on the public hearing on the issue by the Director, Home Finance, Stephen Okon, told members of the House Committees that though the contract was awarded in 2017 it was soon discovered that the beneficiary lacked the technical capacity to execute the project.
The public hearing was titled, “Need to Resolve the Debacle Between Central Bank of Nigeria (CBN)/Technical Committee on Comprehensive Import Supervision Scheme (CISS) and Adani Mega System Ltd Hindering the Take Off of Nigeria Customs Services E-Customs Modernisation Project.”
According to the Minister, this was apart from the company breaching the provisions of the contract.
She disclosed that the contractor, Messr Adani Nigeria Limited, leased the contract to Adani International Limited, which is a different company in the UK.
She said that besides, the company was registered four months after the contract was signed.
The Minister added that the cancellation of the contract was why the contractor, Adani Nigeria Limited, took the federal government to court claiming breach of contract.
She disclosed that the court was yet to decide on the case.
Before the Minister spoke, the Comptroller General (CG) of Customs, Col. Hameed Ali (retd) had clashed with the House Committee members on the issue.
Ali who was represented on the occasion by the Assistant Comptroller General (ICT), Galadima Saidu, had wondered why the case was being reopened by the lawmakers after it had been dispensed with by the same House.
Saidu had said that this development was curious, a development that angered the honourable lawmakers who demanded an apology which was offered.
Ali had given insight on the issue in line with what the Minister said as to the reason why the contract was canceled.
He was quoted by THISDAY Newspaper saying, “Adani Mega System Limited to ‘Build, Operate and Own’ scanning services infrastructure at designated ports across Nigeria, without consultation or knowledge of the Federal Ministry of Finance or Nigeria Customs Service. This information was leaked to the Service by a whistle blower who was introduced to the NCS by the House Committee on Customs, backed with relevant documents.
“Investigations carried out by the service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorised third party, Adani International Limited (UK), registered four months after the agreement was signed and the company has since been dissolved (Copy of the search result is hereby enclosed as Annex A)”.
The Chairman of the Customs Committee, Hon. Leke Abejide, in his opening remark observed that it has been back and front on the issue of e-Customs modernisation project.
He explained that the project was mainly to automate the customs administration, adding that $8.810 billion is to be generated annually.
He also said that the 20 year concession project is expected to fetch the federal government $176.2 billion while the concession cost of implementation was $3.1 billion.
He said, “The cost of concession implementation over a 20-year period is $3.1 billion and the project is projected to generate about $176.2 billion within the 20-year concession period. We equally understood the SPV is to recover their investment based on negotiated and staggered recovery strong ratio from the Comprehensive Import Supervision Scheme (CISS) and Nigerian Export Supervision Scheme (NESS).
“If you juxtapose the benefits that will accrue to the nation for the good of Nigerians with not doing the e-Customs at all, if it is crystal clear we are sitting on gold, but mistaking it to be wood.”
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