FG to implement national single window to reduce port expenses by 25%

The federal government has announced plans to implement the national single window (NSW) system to reduce the cost of doing business at Nigerian ports by at least 25 percent.

On April 16, 2024, President Bola Tinubu inaugurated the NSW project to boost trade in Nigeria.

The NSW is an electronic portal linking all agencies and players in import and export processes to an integrated platform.

Speaking at a stakeholders’ forum on the establishment of the NSW in Lagos on Tuesday, Adegboyega Oyetola, minister of marine and blue economy, said the initiative would streamline operations, enhance transparency, and eliminate inefficiencies in trade processes.

“As highlighted by the World Bank, the cost of doing business at Nigerian ports can be up to 40 percent higher than in other West African countries due to delays and administrative bottlenecks, leading to an estimated annual revenue loss of N2.5 trillion within the business community,” the minister said.

“However, the implementation of the single window system can enhance efficiency, potentially reducing these costs by at least 25 percent. By streamlining operations, improving transparency, and minimising delays, the system not only drives cost savings but also strengthens overall trade facilitation.

“The cumulative impact across all areas — including reduced costs, enhanced efficiency, and greater transparency — ultimately contributes to the overall ease of doing business.”

He added that ongoing multimodal connectivity projects — which is improving road, rail, and inland waterway links — would further reduce transportation costs and enhance logistics.

Citing progress in port operations, Oyetola said vessel turnaround time had dropped from an average of seven days to five, while truck turnaround time had been reduced from 10 days to just a few hours.

“We maximised crane productivity and ensured a reduced transit time for vessels and trucks. These led to a reduction in both the vessel and truck turn-around times,” he said.

“The vessel turn-around-time went down from an average of seven days to an average of five days, while truck turn-around-time went from an average of 10 days to a few hours. But we are not resting on our oars, as our ultimate goal is to make Nigeria the hub of maritime in West Africa.”

In her remarks, Jumoke Oduwole, minister of industry, trade and investment, described the NSW as a transformative reform that would redefine trade across Nigeria’s borders.

“Our single window project will provide a centralised digital platform for traders to submit, process, and access trade-related documentation- eliminating corruption through improved transparency, reducing administrative burdens, and significantly enhancing the ease of doing business in Nigeria,” Oduwole said.

The minister reaffirmed the government’s commitment to its successful implementation under the president’s eight-point agenda, which prioritises economic growth and job creation.

‘NSW WILL ATTRACT FOREIGN DIRECT INVESTMENT’

Doris Uzoka-Anite, minister of state for finance, added that the initiative would attract foreign direct investment by improving Nigeria’s trade environment.

Uzoka-Anite cited the success of similar systems in Indonesia, Vietnam, and Rwanda, noting that their NSW implementations led to reduced clearance times, cost savings, and increased exports.

“Such a similar impact would be significant for Nigeria as we continue to build our foreign reserves and strengthen the Naira,” Uzoka-Anite added.

Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), said the NSW would contribute to the realisation of Tinubu’s vision of a $1 trillion economy by 2031.

“For too long, Nigeria’s trade facilitation processes have been hampered by a complex web of bureaucratic hurdles, characterised by cumbersome and inefficient procedures, leading to significant delays at the ports, increased costs of doing business, and a substantial erosion of Nigeria’s competitiveness in the global marketplace,” Adedeji said.

“This has resulted in substantial revenue losses to the country, reduction in foreign direct investments, and hindered the full realization of our nation’s economic potential.”

According to Adedeji, Nigeria is set to transform its approach to international trade by creating an integrated platform that effectively links key players such as seaports, airports, free trade zones, government agencies, financial institutions, and the private sector.

Bashir Adeniyi, comptroller-general of the Nigeria Customs Service (NCS), acknowledged that similar efforts had been made in the past but were hindered by technological and institutional challenges.

“To succeed, we must embrace a singular purpose backed by unwavering governmental resolve, ensuring that the single window is not perceived as the sole mandate but as a national strategy supported by all stakeholders, including the private sector, financial institutions, and regulatory agencies,” Adeniyi said.

“The centrality of customs in this ecosystem is undeniable, but success requires a symbiotic relationship where each stakeholder plays its part with precision and commitment.”

Abubakar Dantsoho, managing director of the Nigerian Ports Authority (NPA), stressed the importance of collaboration among all stakeholders to accomplish the project’s objectives.

Dantsoho said the initiative demonstrates the possibility for government agencies to collaborate effectively, ensuring smooth service delivery with no tolerance for delays and prompt interventions without any bottlenecks.

‘FIRST PHASE OF PROJECT TO COMMENCE THIS YEAR’

Tola Fakolade, head of the NSW secretariat, said the project would streamline processes, adding that the NSW system was first introduced in Singapore and has also been successfully implemented in countries like Djibouti, and Kenya.

Fakolade noted that the first phase of the project would commence this year with training and testing, expressing his office’s expectation for full cooperation from all stakeholders.