FG Extends Contracts of DI Service Providers

Three direct inspection (DI) service providers have had their contract terms extended by six months by the federal government following calls by international trade stakeholders on the ministry of finance to allow more time for effective mastering of the systems by the Nigeria Customs Service (NCS)

The three DI concessionaires, whose contracts were extended via a letter dated  December 31, 2012, and signed by Danladi Kifasi, permanent secretary of the Federal Ministry of Finance, include SGS Ltd at Port Harcourt and Onne ports, Cotecna at Apapa Port and indigenously owned Global Scan Ltd at Tincan Port.

“I wish to inform you that the President has approved the extension of the agreement dated January 1, 2006, between your company and the Federal Government of Nigeria (FGN) for the provision, Installation, operation and management of X-ray scanning equipment and software for Inspection of goods. The agreement which is to expire on December 31, 2012, has been extended for a period of six (6) months with effect from January 1, 2013,” Kifasi stated in the letter with reference F10361/S.56/VA/491 and sent to the three service providers.

With the extension, the contract now ends on June 30, 2013.

Kifasi directed the service providers to liaise with the legal unit of the ministry of finance “for the preparation and execution of the new agreement within one week of the date of this offer.”

Meanwhile, the Association of Nigerian Licenced Customs Agents (ANLCA) has kicked against the extension of the contract.

National President of ANLCA, Prince Olayiwola Shittu, who spoke with some newsmen described the development as unfortunate, adding that it was a “clear indication of government’s lack of seriousness in local capacity development.”

The three service providers were awarded a seven-year contract that commenced in January 2006 to supply cargo scanning machines on a build, own, operate and transfer basis (BOOT) as well as train Nigeria Customs Service (NCS) officers on risk management, valuation and classification.

As the seven-year contract expired on Monday, many operators in the maritime industry had expressed concern over the preparedness of the Nigeria Customs to take over the DI scheme and effectively operate the scanning machines, despite Customs assurance that it was ready to take over.