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 launched a renewed drive to strengthen its communication strategy, saying better public engagement will play a critical role in building trust, improving compliance and supporting trade reforms across Nigeria.

The move formed the focus of a strategic communication conference held in Port Harcourt on Tuesday, where Customs officers, communication professionals and industry stakeholders discussed how the agency can better explain its reforms and connect with the public.

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 enforcing import and export regulations.

Experts say public understanding of Customs policies can influence compliance, reduce misinformation and improve the ease of doing business, particularly as Nigeria continues implementing reforms aimed at modernising border management and international trade.

Opening the conference, the National Public Relations Officer of the Nigeria Customs Service, Deputy Comptroller Abdullahi Maiwada, said communication should become part of operational planning rather than an activity that comes after policies have been introduced.

“We need to humanise reforms and showcase success stories to demonstrate their impact on the everyday citizen, while aligning operational achievement with strategic communication,” he said.

Maiwada said effective communication strengthens public confidence, encourages voluntary compliance and supports the successful implementation of government reforms.

Experts call for communication beyond publicity

The conference heard that public relations within government institutions must evolve from information sharing to strategic communication capable of influencing public understanding and institutional credibility.

Managing Director of Reputation Masters Limited, Jossy Nkwocha, urged Customs communication officers to embrace innovation, long-term planning and corporate communication as essential tools for institutional growth rather than relying solely on traditional public relations practices.

Lawrence Dike of the University of Port Harcourt said meaningful stakeholder engagement remains one of the strongest foundations for successful organisational change.

“Trust is the currency of business and relationships. Trust is your reputation and reputation is your legacy,” he said.

According to Dike, reforms are more likely to succeed when institutions communicate consistently, listen to stakeholders and place people at the centre of policy implementation.

Communication seen as key to trade reforms

Participants also discussed the role of communication in supporting Nigeria’s Authorised Economic Operator (AEO) Programme, an initiative designed to improve supply chain security while making legitimate trade more efficient.

Chief Superintendent of Customs Titus Omajali said collaboration and continuous engagement with businesses and other stakeholders would determine the programme’s success.

“The success of the AEO programme largely depends on effective communication and collaboration among stakeholders across the international supply chain,” he stated.

Trade experts have long argued that stronger partnerships between Customs authorities and businesses can reduce delays at ports, lower compliance costs and improve Nigeria’s competitiveness in international trade.

Industry voices stress consistency

The conference also featured a panel discussion moderated by Parry Benson, with Chief Superintendent Abdullahi Husseini, Chief Superintendent Oscar Ivara, Chief Superintendent Emmanuel Tangwa, Superintendent Magaji Dikko and Superintendent Juliana Tomo sharing practical experiences on managing communication during complex Customs operations.

Adding an industry perspective, Bamidele Chinedu, General Manager of the Trade Modernisation Project, encouraged public relations professionals to become reliable sources of information by communicating clearly, responding to stakeholder concerns and maintaining consistency.

His remarks reflected a growing expectation among businesses that government agencies should provide timely, transparent and accessible information to improve the trading environment.

What this means for Nigerians

For importers, exporters and freight operators, clearer communication could make Customs procedures easier to understand and improve compliance with regulations.

For the wider public, improved communication may help explain how Customs reforms affect government revenue collection, border security and efforts to facilitate legitimate trade while reducing illegal activities.

What happens next

The first day of the conference ended with participants committing to strengthen strategic communication across the Nigeria Customs Service.

Officials said the goal is to make communication an integral part of institutional reforms, helping to improve stakeholder confidence, support trade facilitation and reinforce public trust in the Service.

Expert Perspective

Communication and governance specialists say government reforms are more likely to succeed when institutions engage citizens openly, explain policy changes clearly and provide regular feedback. Strategic communication is increasingly recognised as a governance tool that supports accountability, transparency and public confidence.