The African Continental Free Trade Area (AfCFTA) wants other African countries to learn from Nigeria’s digital customs reforms, as the continent seeks to remove some of the border delays and administrative barriers holding back intra-African trade.

AfCFTA Secretary-General Wamkele Mene made the call during a visit to the Nigeria Customs Service (NCS) headquarters in Abuja on Thursday, 6 August.

He praised the NCS’s technology-driven reforms and said the systems being developed in Nigeria could have applications beyond the country.

“What we have seen today is truly state-of-the-art. I sincerely congratulate the NCS for what it has achieved within such a short period. We would like to work together and learn from what Nigeria has accomplished because this innovation has inherent benefits not only for Nigeria, but for the entire African continent,” Mr Mene said.

His comments come as AfCFTA faces a practical problem: removing tariffs alone will not make it easy for African businesses to trade if goods still face lengthy customs procedures, incompatible systems and delays at borders.

Why customs digitisation matters

The AfCFTA was created to make trade between African countries easier, but implementation depends heavily on what happens at ports and borders.

The World Bank estimates that intra-African trade accounts for about 14% of Africa’s total trade, compared with roughly 60% within the European Union and 50% within Asia. It says implementation of AfCFTA has been slow and uneven, although Nigeria is beginning to play a larger role in the process.

For businesses, customs procedures are not simply an administrative issue.

Delays can increase transport, storage and demurrage costs, while unreliable clearance processes can make goods more expensive and reduce the competitiveness of African producers.

The World Bank says efficient customs and border procedures can make trade faster, more predictable and less costly for businesses.

This is the problem Nigeria says its digital reforms are designed to address.

Nigeria’s experiment with B’Odogwu

The NCS has been developing the Unified Customs Management System, known as B’Odogwu, as part of its wider Customs modernisation programme.

According to an NCS document, the Federal Government signed a 20-year concession agreement with Trade Modernisation Project Limited in May 2022 for a paperless customs system.

B’Odogwu was developed to replace the Nigerian Integrated Customs Information System II and automate customs processes, with the stated objectives of reducing clearance delays and improving revenue collection.

The platform was first piloted at the Port and Terminal Multiservices Limited (PTML) Command in Lagos.

But the rollout has not been without problems.

The Federal Ministry of Information reported in August 2025 that freight forwarders and licensed customs agents had raised concerns about delays and demurrage linked to the implementation of B’Odogwu. The NCS subsequently engaged the Nigerian Shippers’ Council to address problems involving system integration, documentation and port logistics.

There are signs of improvement

There is evidence of progress at some commands.

At PTML, Customs reported a 34.1% increase in revenue during the first six months of 2025 compared with the same period in 2024.

The command attributed part of the increase to B’Odogwu and said it had generated ₦301.8bn through the platform since its rollout in October 2024.

The NCS has also continued expanding its digital infrastructure.

Its current trade portal describes B’Odogwu as a platform through which traders, licensed customs agents and partner agencies can access digital customs services. The Service is also developing a National Single Window intended to bring trade and maritime processes into a unified digital environment.

The agency’s reform agenda, launched in April, also includes risk-based cargo clearance, better use of scanning infrastructure, service timelines and stronger coordination between agencies.

But Nigeria’s experience exposes the bigger challenge

Moving customs processes online does not automatically remove the problems that occur at borders.

A World Bank assessment of trade-related bottlenecks in Nigeria found evidence of inefficient customs administration, inconsistent valuation and coding of goods, coordination problems and delays in clearance.

That means technology can improve the process, but it cannot by itself resolve poor infrastructure, inconsistent enforcement, inadequate coordination between government agencies or deliberate delays.

There is also a new risk: digital systems create greater dependence on reliable infrastructure and cybersecurity.

If customs processing becomes heavily dependent on one digital ecosystem, system outages or security breaches can disrupt the movement of cargo on a much larger scale.

For African countries considering adopting Nigeria’s model, therefore, the question will not simply be whether B’Odogwu works. It will be whether it can work reliably across countries with different laws, infrastructure, customs procedures and levels of digital readiness.

AfCFTA sees a continental opportunity

Mr Mene described the NCS data centre as a potential strategic asset for African countries that may not have the resources to build similar infrastructure themselves.

He said the facility showed that African countries could develop and manage critical digital infrastructure rather than relying entirely on systems developed elsewhere.

That argument fits into a wider push by AfCFTA to build Africa-owned digital trade infrastructure.

In July, the AfCFTA Secretariat announced a partnership with the ADI Foundation to develop digital infrastructure for intra-African trade. The initiative identified fragmented digital systems as a major obstacle to cross-border commerce and estimated that such fragmentation could cost Africa’s economy as much as $100bn annually.

The timing is also significant because AfCFTA has recently moved to strengthen customs modernisation across the continent. Punch and other Nigerian outlets reported this week that the AfCFTA Secretariat had signed a 20-year, $3.1bn concession agreement aimed at modernising customs administration and improving intra-African trade.

Nigeria’s technology therefore arrives at a time when customs reform is becoming part of the wider infrastructure needed to make AfCFTA work.

What does this mean for Nigerian traders?

If the reforms work as intended, importers, exporters, manufacturers and logistics companies could benefit from fewer paper-based procedures, better visibility of declarations and potentially faster cargo clearance.

Consumers could also benefit indirectly if lower trade and logistics costs eventually reduce the cost of goods.

Businesses will still need to deal with tariffs, regulations, inspections, infrastructure constraints and other agencies involved in cargo clearance.

And if digital systems malfunction or are poorly integrated, traders may face a different version of the same delays rather than their complete removal.

That makes transparency particularly important.

The NCS will need to publish measurable evidence showing how the reforms affect clearance times, revenue collection, compliance, system availability and the cost of doing business.

What happens next?

Mr Mene said AfCFTA is prepared to work with the NCS and learn from its technology.

Adewale Adeniyi, the Comptroller-General of Customs, welcomed the proposal and said the Service would continue developing systems tailored to African trade.

“We sincerely appreciate your passion for promoting intra-African trade and strengthening the interconnectivity of customs systems across the continent. We are not done yet. We will continue to expand the frontiers of innovation, learning from global best practices while developing solutions that advance the peculiar interests of the African continent,” Mr Adeniyi said.

He added that the NCS would work with AfCFTA and other African customs administrations to deepen digital integration, facilitate legitimate trade and strengthen regional economic cooperation.

The next test, however, is implementation.

For Nigeria, the credibility of the reform will ultimately depend less on praise from regional institutions and more on whether a trader can move goods through a Nigerian port or border faster, more predictably and at lower cost than before.

If that happens consistently, Nigeria’s customs technology could become a useful African model.

The Nigeria Customs Service (NCS) has released additional implementation guidelines for tax incentives covering selected gas-powered and electric vehicles, as the Federal Government seeks to accelerate the country’s transition to alternative fuels and reduce dependence on petrol.

The new guidelines, issued by the Federal Ministry of Finance and announced by Customs on Friday, exempt eligible imports from both Import Duty and Value Added Tax (VAT), but only after importers obtain an Import Duty Exemption Certificate (IDEC) from the ministry.

The announcement marks another step in the implementation of the Presidential Gas for Growth Initiative, a programme introduced as part of President Bola Tinubu’s wider energy reforms following the removal of petrol subsidy in 2023.

Who qualifies and who does not

Under the revised framework, duty and VAT exemptions apply to fully Compressed Natural Gas (CNG) vehicles, fully Liquefied Petroleum Gas (LPG) vehicles, fully electric vehicles, Extended Range Electric Vehicles (EREVs) capable of travelling at least 200 kilometres on battery power, approved conversion kits for petrol and diesel vehicles, certified gas-powered tricycles and motorcycles, and specialised gas-distribution trailers.

However, the incentives exclude hybrid electric vehicles, dual-fuel vehicles, luxury vehicles worth at least 100,000 US dollars, overseas-converted CNG vehicles without factory-installed systems, non-powered trailers and all spare parts.

Importers must also secure an Import Duty Exemption Certificate before accessing the waivers and comply with existing import regulations.

Why the policy matters

Nigeria has faced rising transportation costs since the removal of petrol subsidy, while the government has promoted CNG as a cheaper alternative fuel.

The latest Customs directive is intended to reduce the cost of importing cleaner vehicles and equipment, potentially making them more available in the Nigerian market.

But whether consumers will see significantly lower prices remains uncertain.

Import duty and VAT form only part of the final retail cost. Exchange rate volatility, shipping charges, dealer margins, financing costs and limited local infrastructure could still keep prices beyond the reach of many Nigerians.

What evidence supports the government’s case?

The Federal Government has spent the past three years promoting CNG through vehicle conversion programmes, new refuelling stations and partnerships with private investors.

Industry data suggest CNG can reduce fuel costs compared with petrol, particularly for commercial transport operators covering long distances.

However, adoption remains relatively limited because of the high upfront cost of vehicle conversion, inadequate refuelling infrastructure in many states and limited consumer awareness.

Electric vehicles face additional challenges, including inconsistent electricity supply, a shortage of charging stations and high purchase prices.

Experts say infrastructure will determine success

Energy economists say fiscal incentives alone are unlikely to transform the market unless they are matched by significant investment in supporting infrastructure.

They argue that tax waivers can encourage imports, but consumers and fleet operators also need reliable access to gas refuelling stations, charging facilities, maintenance services and affordable financing.

Trade analysts also note that excluding spare parts from the incentives may increase maintenance costs for operators who adopt the new technologies.

Industry awaits implementation details

Licensed customs agents and vehicle importers are expected to seek further clarification on the practical process for obtaining the Import Duty Exemption Certificate and the timelines for approval.

Some stakeholders also want greater transparency over how eligible imports will be verified to avoid delays at Nigerian ports.

The Nigeria Customs Service said the policy would be implemented in line with guidelines issued by the Ministry of Finance.

In a statement signed by the National Public Relations Officer, Deputy Comptroller Abdullahi Maiwada, the Service said the approved incentives cover “specified environmentally friendly and gas-powered vehicles, equipment, and components” that will enjoy exemption from Import Duty and VAT.

The Service added that “importers seeking to benefit from these incentives are required to obtain an Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of eligible items.”

It further stated that the fiscal incentives are intended to support “the Federal Government’s broader objectives of reducing transportation and energy costs, encouraging investment in clean energy infrastructure, expanding the adoption of alternative fuel technologies, and strengthening Nigeria’s energy security and environmental sustainability agenda.”

The Customs Service also said it “remains committed to the effective and transparent implementation of these incentives and urges all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory requirements.”

The Nigeria Customs Service (NCS) has reaffirmed its commitment to working more closely with journalists to improve public understanding of its operations, as it opened its 2026 Public Relations Conference in Port Harcourt, Rivers State.

The Service said accurate and timely reporting would help Nigerians better understand its responsibilities in trade facilitation, border security, anti-smuggling operations and revenue generation at a time when customs reforms are playing an increasingly important role in the country’s economy.

The commitment was announced during a strategic media parley held on Tuesday ahead of the conference, where the Zonal Coordinator of Zone ‘C’, Acting Assistant Comptroller-General Pascal Chibuoke, represented the Comptroller-General of Customs, Adewale Adeniyi.

Welcoming participants from the South-East and South-South, Chibuoke urged attendees to use the conference to strengthen public engagement.

“Let us continue to project the positive image of the Nigeria Customs Service through effective communication and stronger public understanding of our statutory responsibilities.”

Why it matters

The Customs Service is one of Nigeria’s key revenue-generating agencies and plays a central role in facilitating international trade while combating smuggling and securing the nation’s borders.

Analysts say effective communication has become increasingly important as government institutions introduce digital reforms and modernise public services. Better public understanding can improve compliance with customs regulations, reduce misinformation and encourage legitimate trade.

Communication central to Customs reforms

Speaking at the event, the National Public Relations Officer of the Service, Deputy Comptroller Abdullahi Maiwada, described journalists as essential partners in nation-building.

He said the Service’s ongoing reforms would only succeed if Nigerians understood and trusted the changes being introduced.

“The reforms and innovations we are driving in the Nigeria Customs Service cannot succeed in isolation without public understanding and trust.”

Maiwada said sustained collaboration between Customs and the media would help ensure accurate reporting and strengthen confidence in the institution.

Conference theme focuses on public trust

The Customs Area Controller of Port Harcourt Area I Command, Comptroller Salamatu Atuluku, described the conference theme—”Realigning Corporate Communication as a Strategic Driver of Institutional Effectiveness and Public Trust”—as both timely and relevant.

She praised the Comptroller-General for promoting a communication culture that has improved engagement with the public and commended the National Public Relations Officer for building on those efforts.

Host city reflects South-South’s economic importance

Chairman of the Local Organising Committee, Chief Superintendent of Customs Emmanuel Tangwa, said Port Harcourt was chosen because of the South-South region’s strategic contribution to Nigeria’s economy.

He said the gathering would provide an opportunity to explain Customs policies, showcase achievements and address public misconceptions.

“This engagement is more than a meeting. It provides an opportunity to share our achievements, explain our policies, correct misconceptions.”

Journalists welcome Customs openness

The Chairman of the Nigeria Union of Journalists (NUJ), Rivers State Council, Paul Bazia, welcomed the Service’s continued engagement with the media, describing transparency as essential to building public confidence.

“Our responsibility is to communicate the truth and sustain public trust. As journalists in Rivers State, we will continue to work with the Nigeria Customs Service to ensure information is disseminated accurately, promptly and responsibly.”

Industry perspective

Communication and governance experts say regular engagement between public institutions and journalists can help reduce misinformation and improve accountability.

They note that transparent communication is increasingly important as Customs expands digital trade processes, strengthens border management and introduces reforms aimed at improving the ease of doing business in Nigeria.

What happens next?

The Public Relations Conference is expected to feature discussions on strategic communication, reputation management, digital engagement and the role of public relations in strengthening institutional effectiveness.

Participants are also expected to explore practical ways of improving collaboration between Customs officers and the media to ensure accurate reporting and greater public awareness of government policies.