FEC approves customs modernisation project despite court order barring implementation

The federal executive council (FEC) has approved the Nigeria Customs Service (NCS) modernisation project, also known as e-customs, despite a court order restraining the federal government from going on with the initiative.

The FEC meeting, presided over by Vice-President Yemi Osinbajo, was held in Abuja on Wednesday.

Speaking to journalists at the end of the meeting, Clem Agba, minister of state, budget and national planning, said the council approved the implementation of the e-customs project to a concessionaire.

The minister also said he was not aware of any court order.

According to Agba, the concessionaire is Bergman securities consultant and suppliers limited as the project sponsor, Africa Finance Corporation, UFC as the lead financier, and Huawei Technologies will be trained as the lead technical service provider.

He added that the concessionaire has furnished the government with $9 million (N4.135 billion) in security from the satisfactory performance of the project. They have also executed the depth facility tensions of $300 million (N138 billion) to finance the first phase of the project.

“The revenue sharing arrangement is 45 percent of accruals to the comprehensive input service scheme going to the concessionaire and 55 percent going to the federal government, 5 percent of what accrues to the Nigerian responsible action scheme, and 75 percent federal government,” the minister said.

In 2020, the council approved the concession of the automation project of NCS. The project was aimed at generating $176 billion in revenue.

However, the commencement of the project was delayed for undisclosed reasons.

COURT OREDER THAT DELAYED THE PROJECT

Two senior advocates of Nigeria (SAN) had asked Abubakar Malami, attorney-general of the federation (AFG), to obey a court order in respect of a dispute on the multi-million naira e-customs modernisation project.

The senior lawyers, Messrs Ahmed Raji and Dipo Okpeseyi had, in separate letters, warned the AGF; the minister of finance, budget and national planning, and secretary to the government of the federation of “underhand efforts being made to obtain the federal executive council’s approval and or ratification of the re-award of the e-customs modernisation project.”

In the letter, the lawyers specifically asked the council to suspend, discontinue or discountenance any request to initiate deliberations or a fresh request for approval for the award of the said contract to any other bidder aside from the original approval granted by FEC to Messrs e-customs project limited.

“It is in spite of all these that the NCS is pushing to have the FEC grant another approval with the sole purpose to embarrass, reach and undermine the earlier approval and ratification by the FEC and prejudice the matter pending in court,” said Okpeseyi in his letter to the SGF dated April 11, 2023.

Last year, a federal high court in Abuja restrained the federal government from enforcing or giving effect to an agreement on the customs modernisation project otherwise known as e-customs allegedly executed by its agents on May 30, 2022.

On February 20, 2023, the court admonished all parties in the matter to preserve the rest of any matter before the court and do nothing to interfere with the proceedings.

The agents who allegedly executed the disputed concession agreement are the NCS, Trade Modernisation Project Limited, Huawei Technologies Company Nigeria Limited, and African Finance Corporation.