Nigeria's Customs Modernization Revenue Drive Efforts Spark Controversy*

 By Lod Onyeji

The Nigeria Customs Service (NCS) recently introduced the B'Odogwu technology, a new customs management system designed to streamline customs operations and boost revenue collection. However, the rollout has been marred by controversy, with importers and trade stakeholders expressing concerns over glitches, lack of knowledge among officers, and avoidable demurrage losses. These issues have created an undue advantage for shipping companies over indigenous importers.

*The B'Odogwu System: A Game-Changer or a Source of Frustration?*

Launched in October 2024, the B'Odogwu system aims to enhance trade facilitation, security measures, and revenue collection. Comptroller General of Customs, Bashir Adewale Adeniyi, asserted that the technology is backed by the Nigeria Customs Service Act 2023, which empowers the service to develop and employ electronic systems while ensuring transparency and stakeholder consultation. Despite the potential benefits, some importers, including Nze Chidiogo Okpara, CEO of Chidosky Marine Concept Ltd, who during a Roundtable event, organized by Congress Of Nigerian Maritime Media Practitioners (CONMMEP), reported significant losses due to the system's teething issues.

*The 4% FOB Levy Controversy*

Nze Okpara also expressed concerns over the 4% Free-on-Board (FOB) levy imposed by the NCS on imports. Despite the Minister of Finance, Wale Edun, announcing the suspension of the charges in February 2025 and again on September 15, 2025, the NCS seems to be continuing its collection. Importers, manufacturers, and trade stakeholders strongly oppose the levy, citing increased financial burdens and potential negative impacts on inflation, trade competitiveness, and the country's business climate.

*Stakeholder Engagement: The Way Forward*

Nze Okpara urged the government to prioritize efficiency at ports, transparent customs processes, and fair tariff structures to create a competitive business climate. He emphasized the need for robust and effective stakeholder engagement to address the challenges. The NCS has assured operators that initial challenges would be addressed through structured stakeholder engagement, phased improvements, and continuous system upgrades.

*Revenue Collection and System Benefits*

The B'Odogwu System is designed to centralize customs processes, integrate stakeholders, shorten clearance timelines, cut costs, improve compliance, and boost government revenue. The Tin Can Island Port Command generated ₦747.08 billion in revenue in the first half of 2025, a nearly 30% year-on-year rise, powered by the deployment of the B'Odogwu digital clearance platform. This significant improvement in revenue collection is a notable achievement, and the system has the potential to enhance trade facilitation and revenue collection in Nigeria.