Customs, CBN strengthen partnership to automate FX transactions on trade
By Seun Ibiyemi
The Nigeria Customs Service (NCS) and the Central Bank of Nigeria (CBN) have reaffirmed their commitment to improving trade facilitation and boosting revenue generation through automated foreign exchange (FX) transactions.
The Comptroller-General of Customs (CGC), Mr Adewale Adeniyi, underscored the importance of seamless integration between Customs and commercial banks to modernise trade-related payments.
During a recent visit to CBN Governor Olayemi Cardoso, Adeniyi highlighted the ongoing implementation of the B’Odogwu system, an indigenous trade facilitation platform designed to replace the Nigerian Integrated Customs Information System (NICIS II). The new system aims to enhance Customs operations, simplify trade documentation, and improve revenue collection.
The introduction of B’Odogwu follows the expiration of a previous service provider’s contract, which had been repeatedly extended before the government opted for a new concession agreement in 2023. The system was first piloted at the Port and Terminal Multi-Services Limited (PTML) Area Command in Lagos, with stakeholder engagement, including discussions with the CBN.
However, the implementation has encountered challenges, particularly due to resistance from some Authorised Dealer Banks (ADBs). Mr Adeniyi urged the CBN to approve the integration of commercial banks into the system to facilitate seamless FX transactions. He also pointed out inefficiencies in the current manual system for communicating exchange rates from the CBN to Customs for duty collection purposes.
In response, CBN Governor Olayemi Cardoso commended the NCS for its innovation and pledged the central bank’s full support for the successful rollout of B’Odogwu.
“I am pleased to see a new direction in Customs operations. Collaboration is key, and we will work closely to ensure seamless integration. Our commitment is to provide the necessary support so that the banking sector aligns with this transition,” Cardoso stated.
He assured that the CBN would enforce compliance among commercial banks to enhance trade processes and improve revenue collection efficiency.
The nationwide expansion of B’Odogwu is expected to streamline trade documentation, eliminate delays, and enhance transparency within Nigeria’s trade sector.
