Business
Controversy Surrounds Nigeria’s National Single Window Over Exclusion of Key Trade Agencies
A major controversy has erupted following the recent launch of Nigeria’s National Single Window (NSW) initiative, an ambitious project aimed at streamlining trade processes and reducing inefficiencies at the country’s ports. Launched under President Bola Tinubu’s administration, the NSW is designed to tackle the chronic delays and corruption that plague Nigeria’s ports, costing the country an estimated $4 billion annually. However, the federal government’s decision to exclude the Nigerian Shippers’ Council (NSC) and the Nigeria Customs Service (NCS) from leading roles in the project has sparked widespread industry unrest.
Key Agencies Excluded
The decision to appoint the Federal Inland Revenue Service (FIRS) and the Nigerian Sovereign Investment Authority (NSIA) as the lead agencies for the NSW, bypassing the NSC and NCS, has raised concerns across the maritime and trade sectors. Experts and industry stakeholders fear that the exclusion of these critical agencies, both of which have extensive experience in trade facilitation, could undermine the effectiveness of the NSW.
Industry Backlash
Prominent voices in the industry have been vocal in their criticism of the federal government’s move. Dr. Kayode Farinto, a former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), described the initiative as “dead on arrival,” emphasizing that successful Single Window systems globally are typically led by Customs agencies due to their specialized knowledge. Farinto warned that placing FIRS, an agency focused on tax collection, in charge of trade facilitation was a grave mistake that could doom the project.
Dr. Eugene Nweke, a maritime expert, echoed these concerns, arguing that the NSW should prioritize simplifying and automating trade processes rather than becoming a revenue-generating scheme. He criticized the government’s decision as contradictory to global best practices, noting that Nigeria risks falling behind its regional peers, such as Ghana, in trade facilitation.
Divergent Opinions
Despite the widespread criticism, some stakeholders, like Dr. Segun Musa, Deputy President of the National Association of Government Approved Freight Forwarders (NAGAFF), offered a different perspective. Musa suggested that a neutral agency like FIRS might prevent the system from being compromised by entrenched interests, implying that the government’s decision could have merit. However, this view remains in the minority, with most stakeholders advocating for the reinstatement of the NSC and NCS in leading roles.
Looking Ahead
As tensions mount, clearing agents are preparing to escalate the issue by submitting a formal protest letter to the Minister of Finance and the Presidency, demanding the reinstatement of the NSC and NCS as lead agencies in the NSW’s implementation. The federal government now faces a critical decision: either reconsider its approach to the NSW or risk the initiative becoming a symbol of yet another missed opportunity in Nigeria’s quest for modernization and efficiency in trade.
The coming weeks will be crucial in determining whether the National Single Window can fulfill its promise of economic transformation or whether it will falter due to the exclusion of key trade agencies.
The Naira appreciated to N1,590 per dollar in the parallel market on Monday, strengthening from N1,600 per dollar recorded over the weekend.
However, in the Nigerian Foreign Exchange Market (NFEM), the local currency depreciated to N1,549 per dollar, according to data from the Central Bank of Nigeria (CBN). The indicative exchange rate rose slightly from N1,548 per dollar last Friday, marking a N1 depreciation.
As a result, the gap between the parallel market and the NFEM rate narrowed to N41 per dollar, down from N52 per dollar last weekend.
The exchange rate movement reflects ongoing fluctuations in Nigeria’s forex market as authorities continue efforts to stabilize the currency.
The Central Bank of Nigeria (CBN) has reaffirmed its commitment to the Nigerian Foreign Exchange (FX) Code, stating that its operations align with the principles of the code.
In a statement signed by Governor Olayemi Cardoso, Deputy Governor of Economic Policy Mohammad Abdullahi, and Director of the Financial Markets Department Dr. Omolara Duke, the apex bank emphasized that its decision follows a review of the FX Global Code and recognition that the code represents a set of principles widely acknowledged as good practice in the foreign exchange market.
The statement confirmed that the CBN acts as a regulator to market participants as defined by the code and is committed to overseeing FX market activities in a manner consistent with its principles.
“To this end, the Bank has taken appropriate steps, based on the size and complexity of the FX Market, and therefore aligns its roles with the principles of the Code,” the statement added.
The Federal Government has launched a national electronic assets register to provide real-time access to information on government-owned assets, aiming to enhance transparency and attract more investments into the country.
The digital registry was introduced by the Accountant General of the Federation, Dr. Oluwatoyin Madein, during an event that also featured the unveiling of a compendium of FAAC allocations to federal, state, and local governments from 2020 to 2023.
Madein described the initiative as a major milestone in improving public resource management, emphasizing that it is essential for financial sustainability and integrity. She stated that the project aligns with the government’s commitment to transparency and accountability in handling public funds and assets.
She noted that giving citizens access to information about public asset management would increase government accountability. “Whether it is infrastructure, equipment, or other public property, every asset must be accounted for,” she said.
The real-time access provided by the digital register is expected to support policy formulation, budgeting, and planning. Madein explained that by having a clear understanding of the government’s assets and their conditions, policymakers can make more informed decisions on resource allocation, investment management, and potential privatisation or public-private partnerships (PPPs) for underutilized assets.
She added that the initiative also aligns with international best practices, supporting Nigeria’s adoption of the International Financial Reporting Standards (IFRS) and the International Public Sector Accounting Standards (IPSAS). These standards will help strengthen the credibility and integrity of the country’s financial statements.
On the compendium of FAAC allocations, Madein stated that it provides a detailed breakdown of revenue distribution to the three tiers of government and serves as a valuable resource for policymakers, researchers, and the general public.
Minister of State for Finance, Doris Uzoka-Aniete, who officially unveiled the compendium, praised the Accountant General’s efforts in promoting transparency and accountability. She described the electronic asset register as an important tool that will help determine the real value of Nigeria’s assets and create opportunities for local and foreign investment.
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