FEC approves N142.24bn e-Customs project amid controversy

The Federal government has given the go-ahead for a N142.24 billion e-Customs modernization project despite opposition.

The decision is being made despite reports that the e-custom project is being prevented from moving forward by a court order.

The Minister of State for Budget and National Planning, Clem Agba, has stated that he is not aware of any court orders pertaining to the project.

Shortly after the Federal Executive Council, or FEC, meeting on Wednesday that was held at the Villa in Abuja under the chairmanship of Vice President Yemi Osinbajo, he revealed this to State House reporters.

According to Agba, the concessionaire includes Huawei Technologies as the principal technical service provider, Africa Finance Corporation UFC as the principal financier, and Bergman Securities Consultant and Suppliers Limited as the principal project sponsor.

Agba claimed that the concessionaire had given the government a debt facility timesheet for $300 million (N138 billion) to finance the first phase of the project, as well as $9 million (N4.14 billion) in security from the project’s successful completion.

He stressed that the concessionaire would take 45 per cent of all that accrues to the comprehensive input service scheme while 55 per cent goes to the federal government confers.

The Minister added that the concessionaire would also keep 25 per cent of what accrues to the Nigerian export supervision scheme, while 75 per cent will go to the federal government.

But on April 18, two Senior Advocates of Nigeria reportedly asked the Federal Government, Attorney General of the Federation, Abubakar Malami, to obey the court order regarding a dispute on the multi-million Naira E-customs modernization project.

The legal luminary, Messrs Ahmed Raji and Dipo Okpeseyi, in separate court letters obtained by newsmen, warned the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, and Secretary to the Government of the Federation, Boss Mustapha, against efforts being made to get the Federal Executive Council’s approval over the re-award of the project.

Okpeseyi, according to the letter dated April 11, 2023, to the Secretary to the Government of the Federation, said, “It is despite all these that the Nigeria Customs Service is pushing to have the FEC grant another approval with the sole purpose of embarrassing, reaching and undermining the earlier approval and ratification by the FEC and prejudice the matter pending in court.”

Recall that in June 2022, the Federal High Court in Abuja had restricted the Federal Government from enforcing and giving effect to an agreement on the Customs Modernisation Project allegedly executed by its agents on May 30, 2022.

The e-Customs concession project has continued to be controversial over time, stalling its implementation.

The development comes amid Nigerians’ concerns about hasty project approvals in the twilight of President Muhammadu Buhari’s administration.

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