How B’Odogwu models global strategies to modernize Nigerian trade

The Nigeria Customs Service (NCS) has recently introduced the B’Odogwu system – a sophisticated Unified Customs Management System (UCMS) designed to streamline operations, enhance compliance, and optimise revenue collection.

Spearheaded by Kikelomo Adeola, deputy comptroller-general of Customs, ICT and Modernisation, the web-based application system aligns with Nigeria’s plan to modernise customs and trade operations.

“The B’Odogwu system was conceptualised to address existing gaps in customs automation, further elevate the Service’s capabilities by integrating advanced technology to ensure seamless end-to-end processes in the clearance value chain amongst other aspects and areas of the service as an entity,” Adeola said in an interview with the NCS Editorial Board.

B’Odogwu’s design closely aligns with global strategies to modernise customs operations through advanced technology. The UN Trade and Development Automated System for Customs Data (ASYCUDA), widely implemented in developing countries, has set a precedent for customs modernisation for over 40 years.

ASYCUDA integrates processes such as import and export documentation, duty computation, and cargo tracking into a single automated framework. However, while ASYCUDA focuses on compliance with international standards and reducing transaction costs, B’Odogwu builds on these principles with enhanced AI and machine learning capabilities tailored to Nigeria’s specific trade environment.

Globally, countries like China and others in East Africa have also embraced advanced systems for trade and customs processing.

China’s Intelligent Customs Inspection (ICI) system uses AI to automate inspections and streamline customs clearance, while East Africa’s Regional Electronic Cargo Tracking System (RECTS) offers real-time cargo tracking across borders. Countries in East Africa, including Uganda, Kenya, Rwanda, and the Democratic Republic of Congo, have already implemented RECTS.

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The rapid growth in EU trade volumes and increasing regulatory complexity has sparked an “undeniable” need for automated customs clearance. The EU has already begun exploring the integration of AI to streamline clearance processes and ensure compliance.

These systems share similarities with B’Odogwu, particularly in leveraging technology for risk management and operational efficiency.

“The vision is to establish a data-driven, technology-enabled ecosystem for customs operations,” Adeola stated, adding that B’odogwu is designed to “unify disparate customs processes—such as risk profiling, real-time cargo monitoring, and valuation intelligence— into a centralised digital hub, ensuring compliance with the WCO SAFE Framework of standards.”

Early results show the system’s potential though problems persist. In November 2024, the PTML Command recorded its highest-ever monthly revenue collection of N44.9 billion. “This result underscores B’Odogwu ability to block revenue leakages and optimise collection,” Adeola stated.

While the idea bears good news, the B’Odogwu has bore problems for stakeholders as freight forwarders lament technical, operational, and compliance-related issues, including “human element forces” within the system that threaten its success.

Incomplete integration with banks, high demurrage charges imposed by terminal operators and low compliance levels among freight agents also pose issues.

“As with any new technology, there are bound to be issues before seamlessness, but these were addressed through collaboration with financial institutions,” Adeola affirmed.