Nigeria's B'Odogwu: A Game-Changer in Customs Clearance and Trade Facilitation

Nigeria's customs landscape is undergoing a significant transformation with the introduction of B'Odogwu, a Unified Customs Management System designed to modernize trade operations and enhance efficiency at the country's key ports, particularly in Lagos. Launched by the Nigeria Customs Service (NCS) in 2024, B'Odogwu represents a major leap forward in customs administration, aiming to align Nigeria's processes with global best practices.

What is B'Odogwu?

B'Odogwu is an indigenous digital platform developed to centralize customs processes, integrating stakeholders into a unified system. The name "B'Odogwu" symbolizes strength and efficiency, with "B" representing Nigeria's borders and "Odogwu" meaning "great man" in Igbo, reflecting the system's robust capabilities. This home-grown technology is a result of collaboration between the NCS and Trade Modernisation Project (TMP), marking a shift from previous systems like NICIS II.

Key Features and Benefits of B'Odogwu

- Streamlined Clearance: B'Odogwu promises to reduce cargo clearance times dramatically, with claims of clearing goods in as little as two hours at Tin Can Island and Apapa ports.

- Enhanced Transparency: The system incorporates electronic cargo tracking, non-intrusive scanners, and risk control centers for better fraud detection and compliance.

- Revenue Growth: Implementation of B'Odogwu has led to significant revenue increases; for instance, Apapa Customs generated ₦161 billion in revenue within three weeks using the system.

- Local Control: Developed by a Nigerian firm, B'Odogwu allows the NCS greater control over systems and data.

- Stakeholder Engagement: The NCS has engaged with stakeholders, including the Nigerian Shippers' Council and licensed customs agents, to address implementation challenges and promote adoption.

Form M Processing and B'Odogwu

- Integration: B'Odogwu has successfully integrated Form M processing, a critical document for imports in Nigeria.

- Pilot Phase: During the pilot phase at PTML, Tin Can Island Port, and Apapa Area Command, 544 Form M entries were processed.

- Outcomes: 283 entries were registered, 37 Pre-Arrival Assessment Reports (PAARs) were generated, with 7 registered, 12 having Single Goods Declarations (SGDs) processed, and 2 fully approved.

PAAR and Its Significance

- First PAAR Issued: The NCS issued the first PAAR under B'Odogwu, marking a milestone in technology-driven trade reforms.

- Pre-Arrival Assessment: PAAR facilitates pre-arrival clearance processes, enhancing trade facilitation and reducing congestion.

- Integration with Agencies: B'Odogwu integrates with key agencies like the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), Standards Organisation of Nigeria (SON), and others for seamless operations.

Integrations and Collaborations

- CBN and Banks: The CBN has approved integration of commercial banks for Form M openings, enhancing transaction processing.

- Agencies Onboard: Agencies like SON, NAFDAC, NAICOM, Port Health Services, and NESREA are integrated into B'Odogwu.

- Stakeholder Engagement: Ongoing engagement with banks, freight forwarders, and importers aims to ensure smooth adoption.

Impact and Revenue Generation

- Apapa Customs Revenue: Apapa Command collected ₦161 billion in revenue using B'Odogwu within three weeks.

- Efficiency and Transparency: B'Odogwu aims to boost trade efficiency, reduce bureaucratic bottlenecks, and enhance compliance.

- Demurrage Reduction: The platform has significantly reduced demurrage incidence, improving cargo clearance.

Challenges and Considerations

- Technical Glitches: Initial implementation faced challenges, but the NCS is working to address these.

- Training and Awareness: Ongoing stakeholder training and awareness campaigns are crucial for adoption.

- Compliance: B'Odogwu aims to enforce compliance and legitimacy in customs processes.

Conclusion

B'Odogwu signifies Nigeria's ambitious stride towards modernizing customs operations, promising faster clearance times, enhanced transparency, and improved revenue collection. With integrations like Form M processing and PAAR issuance, alongside collaborations with key agencies and stakeholders, B'Odogwu has the potential to transform Nigeria's trade landscape.