Three months after the Nigeria Customs Service (NCS) launched its indigenous trade facilitation platform, B’Odogwu, commercial banks in Nigeria have refused to integrate into the system, raising concerns about delays in the platform’s full implementation, Customs Comptroller General, Adewale Adeniyi, said.
The resistance from financial institutions threatens the modernisation efforts of the NCS, which had developed B’Odogwu as a replacement for the Nigerian Integrated Customs Information System (NICIS) II.
Adeniyi, during a courtesy visit to the Central Bank of Nigeria (CBN) on Thursday, expressed concerns over the banks’ reluctance to adopt the new platform.
He emphasised that B’Odogwu was designed to enhance efficiency in trade documentation, improve revenue collection, and automate foreign exchange transactions related to trade.
Adeniyi explained that the Customs Service had engaged all stakeholders, including the Central Bank, before piloting B’Odogwu at the Port and Terminal Multi-services Limited (PTML) Area Command in Lagos.
However, despite these consultations, he noted that some Authorised Dealer Banks (ADBs) had resisted integration, creating bottlenecks in the system.
“We began piloting the B’Odogwu programme at the Port and Terminal Multi-services Limited (PTML) Area Command in Lagos and engaged all stakeholders, including the Central Bank. Three months into the pilot phase, we integrated key trade documentation processes such as Form M and Pre-Arrival Assessment Report (PAAR) but encountered initial challenges, particularly resistance from some of the Authorised Dealer Banks (ADBs),” Adeniyi noted
He urged the apex bank to grant the necessary approvals for banks to integrate into the system to enable seamless transactions.
He also highlighted inefficiencies in the manual communication of exchange rates from the apex bank to Customs, which continues to slow duty collection.
While CBN Governor Olayemi Cardoso commended the Nigeria Customs Service for its forward-thinking approach, he acknowledged the challenges posed by banks’ reluctance.
He assured that the apex bank would work towards aligning the banking sector with the new system to enhance trade processes and revenue generation.
“I am pleased to see a new direction in Customs operations. Collaboration is key, and we will continue to work closely to ensure seamless integration. Our commitment is to provide the necessary support so that the banking sector aligns with this transition,” Cardoso said.