The Federal Executive Council (FEC) has approved $3.1 billion for the end to end automation of the Nigeria Customs Service (NCS).
The Minister of Finance, Mrs Zainab Ahmed, disclosed this at the end of the FEC virtual meeting in Abuja on Wednesday, September 2, 2020.
According to her, the concessionary period is 20 years and the funding is solely from investors with the revenue expected from this automation pegged at $176bn.
Channels TV reports that the Finance Minister gave a breakdown of the project funding, stating that the investors will be paid overtime according to a schedule that will be negotiated with the Federal Government.
She said: “This investment of $3.1 billion is broken down into capital investment of $1.2 million that will be done in three phases over 36 months by these investors and $1.8 million is our projection of the operational cost over the 20-year period of the implementation of this project.
The Finance Minister added that the project has potential to yield up to $176 billion of revenue and the consortium that are providing these investments are going to be paid overtime according to the schedule that will be negotiated for their investments including their profits and cost of funds.
Mrs Ahmed also revealed that FEC approved the upgrade of safe towers in Lagos, Kano, Abuja, and Port Harcourt Airports; adding that the Airport upgrade is to cost ₦13.122 billion.
The Minister added that the analog systems in the Airports will be upgraded to digital just as weather reports will now be transmitted instantly as against the current hourly practice.
During the meeting, FEC also reiterated the need for all Ministries, Departments, and Agencies (MDAs) to consult the Federal Government-owned Galaxy Backbone Limited before budgeting and all payments should go to the Treasury Single Account (TSA).