Nigeria is losing about $8.810 billion annually from the non-implementation of the Nigeria Customs Services E-Customs modernisation project which is projected to generate about $176.2 billion within 20 years concession period.
Chairman, House of Representatives joint Committee Customs and Excise; Banking and Currency and Finance,
Leke Abejide said this at the public hearing on: ‘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 Modernization Project’, in Abuja on Monday.
Leke explained that the project if properly implemented, will go a long way to reduce Nigeria’s vulnerability to external debts and also strengthen its currency.
“The cost of concession implementation over a 20-year period is $3.1 billion American Dollars and the project is projected to generate about $176.2 billion American Dollars within the 20 years 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),” he said.
In her presentation, the Minister of Finance, Budget and National Planning,
Zainab Ahmed said the take-off of the E-Customs Modernization Project was being delayed by pending court cases.
Ahmed who was represented by at the hearing by the director of home finance, Stephen Okon said the Finance Ministry was liaising with the Office of Attorney General to ensure quick resolution of the legal drawbacks so as to implement the project.
“There is no doubt, the pending cases are impeding the commencement of the E-Customs Project. In order to pave way for the take-off of the project, the ministry is liaising with the Office of the Attorney General of the Federation to ensure that the arbitration is speedily concluded. This we believe could settle all the pending matters and allow the E-Customs project to commence without further delay”, she said.
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On his part, the Comptroller-General of Customs, Hameed Ali stated that the House had treated and dispensed of the matter, saying it was,”curious that the same House is raising the issue over again.”
Ali who was represented by the Assistant Comptroller General (ICT), Galadima Saidu said the contractor; Adani Mega System Limited who was supposed to execute the project had been relieved of it.
He said: “investigations carried out by the Service revealed that Messrs Adani Mega Systems Limited outsourced the agreement to an unauthorized third party Adani International Limited (UK) registered 4 months after the agreement was signed and the Company has since been dissolved ( Copy of the search result is hereby enclosed as Annex A).
“Therefore, the assertion by Adani Mega System Ltd that its international partner has a proven track record, capacity, expertise and competence to execute and operate within the project field covered by the agreement was false and misleading.
“It was upon the realization of this misrepresentation that the Committee on CISS canceled the agreement entered into with Messrs Adani Mega Systems Limited, via a letter Ref:TED/DIR/GAM/GEN/Ol/OZS dated 18th September 2017 (Capy attached as Annex ‘B).
“It is worthy of note also that the House of Representatives Joint Committee On Finance, Customs and Public Petition passed a resolution suspending the Concession Agreement on e-Customs pending the outcome of an investigative hearing.
“The hearing was conducted and the Committee Vide a second letter NAS S/9/CHR/2019/JOINT/002 dated 20th December 2019 (Copy of the letter is hereby attached as Annex C) stated that after due consideration of the process towards the award has found no breach in the award of the contract for the e-Customs Project.
“The committee recommended that the agreement be finalised and the Consortium awarded the Contract (Copy of the House Committee’s report is attached as Annex D). It is therefore curious that the same House is raising the issue over again.”
However, the use of the word “curious” did not go down well with the lawmakers, as a member of the Committee, Ndukwe Nkole asked the Customs Comptroller General to withdraw the remark and tender apology.
He said: “the CG of customs in his address to this parliament, especially in paragraph 4, is very derogatory to the parliament and it is very wrong for a public officer, an appointed officer to address elected representatives, that he’s curious. So I demand that the CG of customs must apologise to this parliament for using such a derogatory statement on the parliament.”
Responding, the Comptroller General’s representatives, Saidu rather than apologise, was stressing the importance of the project until he was prevailed upon by lawmakers before he uttered: “I apologise”.
The public hearing was adjourned to March 4, 2022, to allow Adani mega systems and the remaining parties such as the CBN to present their own submissions to the committee.
