The Federal Executive Council (FEC) has approved the installation of Electronic Cargo Tracking Notes for seaports nationwide.
The Minister of Transportation, Mu’azu Sambo, disclosed this on Wednesday while briefing journalists after the FEC meeting presided over by the President Muhammadu Buhari at the Aso Rock Villa, Abuja.
Sambo said the Electronic Cargo Tracking Note will tackle several challenges, such as the under-declaration, concealment and wrong classification of important cargo, which are “the primary causes of revenue leakages, insecurity and safety issues at the borders.”
He said the scheme, which is already operational in 26 African countries, would plug revenue leaks and is expected to generate between $90m-$235m annually for the FG.
He added that the project will be co-implemented by a consortium of five Belgian companies and four indigenous logistics firms in a concession that will last 15 years.
The revenue sharing formula will be 60-40 per cent, with the FG taking the greater share, the minister said.
The Public-Private Partnership, Sambo said, will enable the tracking of oil exports and “eliminate oil theft” that has cost the government billions of dollars.
“Council considered our submission and approved our submission to put in place for Nigeria as it is in 26 other African countries, an electronic cargo tracking note scheme in order to, among other things, take care of under-declaration at ports, secure our imports and exports and provide transparency in cargo invoicing and declarations.
“The implementation of the scheme will abate the problems of the concealment and wrong classification of cargo, which are the primary cause of revenue leakages, insecurity and safety issues at the borders.
“Additionally, this scheme includes the tracking of our oil exports. This way, we are going to, if not reduce, totally eliminate oil theft.
“The platform will be deployed by a consortium of five companies made up of a foreign technical partner and four local companies.
“The consortium will be led by the technical partner, Antaser Afrique BVBA, a Belgium-based company. The other local companies are MSSRS Velocity logistics and marine services, Saham’s Crystal Investments Limited, Winslow Logistics Limited and Equal Logistics Limited.
“The concession is for a period of 15 years to enable the investors to recoup their investments between years 12 and 15. It is expected that this scheme will generate revenues to the federal government ranging from about $90m per annum to a peak of about $235m per annum,” the Minister said.
Sambo said the project implementation comes at no cost to the government as the investments are from private sector companies.
“The revenues that will be derived from the small margin of charges would be shared in the ratio of 60 per cent to the federal government and 40 per cent to the consortium of companies,” he said.