The Central Bank of Nigeria (CBN) and the organized private sector have expressed concerns regarding the effectiveness of the Nigeria Customs Service's new digital clearance system, B’Odogwu, in addressing the challenges faced in the import and export of goods in the country.
They noted that the platform has fallen short of their service delivery expectations.
Stakeholders indicated that the new system is not user-friendly and has led to delays in documentation for private firms attempting to import foreign goods.
These issues were raised during a town hall meeting held by the Nigerian Customs in Ikeja on Monday, less than nine months after the platform's launch aimed at improving port access for the organized private sector nationwide.
Delegates, including representatives from British American Tobacco and various banks, highlighted problems with the certification process, stating it currently lacks sufficient verification and has allowed substandard products to enter the country.
Furthermore, representatives pointed out complications related to the classification of HS Codes between the Standards Organization of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC), which they claimed further, complicates customs clearance.
Additional bottlenecks cited included difficulties in real-time data sharing and challenges related to the transition from the previous Nigeria Customs Integrated System (NCISIS) to B’Odogwu.
Stakeholders from the import, export, and banking sectors emphasized the necessity for improved user training to maximize the system's advantages, underscoring that prompt action on these concerns is crucial to avoid further delays and enhance overall trade facilitation.
The CBN Head of Import and Trade Relations, Tiku Alu, addressed the attendees, stating that the Nigeria Customs needs to enhance the system's efficiency to better serve importers and exporters.
While Alu outlined significant challenges that need attention, he noted that the migration from the old NCISIS to the new platform remains an ongoing process and stressed the importance of streamlining procedures and improving service delivery.
On a more positive note, many participants praised several features of B’Odogwu, highlighting its user-focused design and the platform’s emphasis on direct feedback from stakeholders.
Some users reported that the system has greatly improved tracking capabilities, allowing for better monitoring of shipment statuses and real-time information access.
Several attendees acknowledged that the platform has decreased clearance times by as much as 24 hours, marking a considerable efficiency improvement for both importers and exporters.
They also recognized that data consistency between B’Odogwu and the NCS database has been upheld, enhancing reliability and transparency within customs operations.
Discussing the challenges faced by the B’Odogwu platform, the Comptroller-General of Customs, Bashir Adeniyi, mentioned that training is currently taking place across various commands to equip staff to effectively respond to issues raised by exporters and other users.
Adeniyi explained that the Town Hall meeting was organized to provide stakeholders with an opportunity to share their experiences and offer feedback on the B’Odogwu system.
“In the past two weeks, I have encountered concerns regarding logging in, transitioning from NICIS II to B’Odogwu, payment issues, and other challenges.
We engaged in discussions with the authorized banks ten days ago and received feedback and commitments from them to address some of the raised challenges,” he stated.
“I am also pleased that the feedback we have received includes positive reports. What we observed during the panel discussion indicates that while changes may require sacrifices, with dedication, we can achieve the desired improvements.
Therefore, we welcome ongoing collaboration and open feedback through the platform.
B’Odogwu is facilitating cost reduction, easing business expenses, and addressing security threats, indicating its permanence.
As we implement this technology, we aim to improve our ability to balance various mandates without compromising any.
Furthermore, he highlighted that the service's ICT department has developed a set of questions to provide general information for stakeholders, and the help desk at different commands will assist in distributing this document.
In addition to addressing concerns about the B’Odogwu platform, the Comptroller-General also discussed broader policy reforms intended to enhance revenue generation and operational efficiency within the Service.
Adeniyi indicated that the introduction of a 4 percent Free-on-Board (FOB) levy will replace the current 1 percent Comprehensive Import Supervision Scheme (CISS) and the 7 percent Customs collection.
Under the new Customs Act, he explained, the 4 percent FOB would be paid upfront, describing it as a mutually beneficial arrangement for both the government and stakeholders.
Adeniyi urged stakeholders to be understanding, clarifying that the levy aims to support technological advancements in Customs operations.
He asserted that no additional charges would be incurred once the 4 percent FOB is implemented.