The installation of Electronic Cargo Tracking Notes for seaports across Nigeria, was on Wednesday signed by the Federal Executive Council (FEC).
According to FEC, the cargo e-tracking system will further curb revenue leakages, insecurity and safety cases at the borders amongst other challenges faced by the industry.
The Minister of Transportation, Mu’azu Sambo, addressed newsmen after the weekly Federal Executive Council meeting presided over by President Muhammadu Buhari at the Aso Rock Villa, Abuja.
He noted that the electronic scheme is projected to generate between $90m to $235m yearly for the Federal Government.
Sambo hinted that the ECTN project will be carried out in partnership among five Belgian companies and four Nigerian logistics firms in a concession with a 15 years timeframe. The revenue sharing formula was pegged at 60-40 per cent, while the Federal Government gets the larger share.
Investors King gathered that the electronic cargo tracking note is currently operating in about 26 African countries including; Ghana, Senegal, Benin, Republic and Togo to reduce revenue leaks.
The Minister of Transportation further explained that the e-tracking will curb issues of under-declaration, concealment and wrong classification of cargos at seaports.
Part of the goals of the electronic cargo tracking note, Sambo said, is to create an efficient system of tracking oil exports and exposing oil theft that has drained the nation’s economy for years.
He mentioned that a major benefit of the e-tracking system is to tackle the issue of under-declaration at ports.
According to a report submitted to the Senate in November, 2022, Nigeria lost over $2 billion to oil theft from January to August 2022 and that only 66 per cent of the nation’s oil production and distribution could be fully accounted for, while the remaining 33 per cent was lost to theft and looseness.