News Highlights:
- Automation of FX Transactions for Trade
- Implementation of the B’Odogwu System
The Nigeria Customs Service (NCS) and the Central Bank of Nigeria (CBN) have reinforced their commitment to improving trade facilitation and revenue generation through the automation of foreign exchange (FX) transactions.
Digital Times reports that during a visit to the CBN Governor, Mr. Olayemi Cardoso, last Thursday, the Comptroller-General of Customs (CGC), Mr. Adewale Adeniyi, underscored the need for seamless integration between Customs and banks to modernize trade-related payments.
He highlighted the ongoing implementation of the B’Odogwu system, a locally developed trade facilitation platform designed to replace the Nigerian Integrated Customs Information System (NICIS) II.
The B’Odogwu system aims to enhance Customs operations by streamlining trade documentation and improving revenue collection. Its rollout follows the expiration of a previous service provider’s contract, which had undergone multiple extensions before a new concession agreement was established in 2023.
The pilot phase of B’Odogwu began at the Port and Terminal Multi-services Limited (PTML) Area Command in Lagos, with engagement from key stakeholders, including the CBN. However, integration challenges emerged, particularly due to resistance from some Authorized Dealer Banks (ADBs).
In response, Mr. Adeniyi urged the CBN to authorize the integration of commercial banks into the system to facilitate seamless FX transactions. He also highlighted inefficiencies in the current manual process of transmitting exchange rates from the CBN to Customs for duty collection.
CBN Governor Olayemi Cardoso commended the NCS for its innovative approach and assured full support for the successful implementation of B’Odogwu.
“I am pleased to see a new direction in Customs operations. Collaboration is essential, and we will work closely to ensure seamless integration. Our commitment is to provide the necessary support to align the banking sector with this transition,” Cardoso stated.
He further assured that the CBN would enforce compliance among commercial banks to enhance trade efficiency and revenue collection.
The nationwide adoption of B’Odogwu is expected to improve transparency, eliminate delays, and streamline trade documentation, ultimately strengthening Nigeria’s trade sector.
