Functional unified trade system will attract $3b in private investments
The current cargo clearing system inefficiencies at the ports are costing Nigeria between N500 billion and N900 billion yearly in unrealised revenue, administrative duplication and lost productivity, the Sea Empowerment and Research Centre (SEREC) has disclosed.
The research body stated that enhanced predictability and port transparency could attract $2 billion to $3 billion in private logistics and maritime investments within five years, expanding the nation’s Gross Domestic Product (GDP) contribution from the maritime sector by up to 1.5 per cent.
According to a report by SEREC and signed by the Head of Research, Dr Eugene Nweke, made available to The Guardian on Sunday, the inefficiencies and absence of a unified National Single Window (NSW) continue to push regional competitiveness and drive shippers to neighbouring ports in Cotonou, Lome and Tema, which already operate harmonised digital trade platforms.
In the report titled: “Nigeria’s Path Toward Seamless Cargo Clearance – The Imperative of a Functional National Single Window,” SEREC lamented that multiple attempts at establishing a central trade facilitation network have faltered due to inter-agency rivalries, shallow implementation frameworks and vested interests.
The group observed that despite notable digital migration strides made by the Nigeria Customs Service (NCS), obstacles still persist, which include lack of interoperability among relevant port and border agencies, system integrity compromises leading to periodic disruptions and downtime, weak private sector integration and stakeholder consultation, and overemphasis on revenue over trade facilitation objectives.
SEREC’s analysis revealed that a fully operational NSW could boost Customs revenue by 10–20 per cent yearly, adding up to N1.2 trillion in earnings.
The group added that it could also reduce cargo dwell time by 35 to 45 per cent and cut overall trade transaction costs by 25 per cent, leading to estimated logistics and demurrage savings of between N300 billion and N400 billion yearly for the private sector, enhancing Nigeria’s global logistics competitiveness index and easing the cost of doing business.
Beyond fiscal gains, SEREC stated that a functional NSW ecosystem could create over 100,000 direct and indirect jobs in ICT, logistics and data management.
The group also noted that while the strong revenue trajectory shows Customs’ determination, the absence of a seamless and transparent digital backbone, efficiency leakages, compliance gaps and overlapping bureaucracy will continue to erode the full potential of these figures, especially in the face of low imports and cargo traffic.
SEREC stressed that the NCS now bears a collective institutional duty to galvanise resources, technical capacity and collaboration in ensuring that the B’Odogwu platform evolves into an enduring backbone capable of supporting the lifespan and operational depth of the forthcoming National Single Window (NSW) regime.
Drawing lessons from Singapore’s TradeNet system and the Advance Clearance for Courier and Express Shipments System (ACCESS), SEREC stressed that Nigeria’s NSW must be built on institutional coordination, trust and shared national commitment to ensure trade facilitation over bureaucratic competition.
The centre noted that the Singapore model allows efficiency for freight forwarders, terminal operators, airlines and customs authorities to communicate through a unified channel that processes declarations electronically across a “mailbox” system, ensuring speed, transparency and accountability.
The research body emphasised the importance of developing and integrating a home-grown national digital system that reflects Nigeria’s trade realities and suits its peculiarities, rather than overreliance on foreign consultants or off-the-shelf software.
Commending the Federal Government for setting up an Independent National Single Window Secretariat, the group cautioned against dominance by any sectoral interest, advocating for clear rules of engagement, moderation and measurable Key Performance Indicators (KPIs) tied to trade facilitation outcomes rather than revenue collection.
SEREC also advised the National Trade Facilitation Committee (NTFC) to promote policies addressing Incoterms misalignment and documentary non-compliance, proposing the possible adoption of Delivered Duty Paid (DDP) and Delivered Duty Unpaid (DDU) systems and their requisite Letters of Credit as applicable for Nigeria’s import processes.
“The Secretariat’s interventions and oversight functions must remain neutral, inclusive and performance-driven. Furthermore, emphasis must shift from external consultant-driven frameworks towards home-grown expertise that understands the peculiarities of Nigeria’s Cost, Insurance and Freight (CIF)-dominated import culture. Even the most advanced EDI systems risk falling short of expectations,” the group said.
