Nigeria’s PPP Model Adopted for $3.1bn AfCFTA Customs Modernisation Project

Nigeria’s Customs Modernisation PPP Becomes Model for $3.1bn AfCFTA Project

Nigeria’s Public-Private Partnership (PPP) model for customs modernisation has been adopted as the template for a $3.1 billion African Continental Free Trade Area (AfCFTA) customs project expected to cover about 50 member countries.

The Infrastructure Concession Regulatory Commission (ICRC) said the development demonstrates the potential of properly structured PPPs to attract private capital into large-scale infrastructure and technology projects while reducing pressure on public borrowing.

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AfCFTA adopts Nigerian customs model

The AfCFTA Secretariat recently signed a 20-year concession agreement with Bergmans Security Consultants and Supplies Ltd., the parent company of Trade Modernisation Project (TMP), to deploy the customs modernisation system across about 50 member states.

The project will support a continental market serving about 1.3 billion people and is designed to improve customs processes and facilitate trade across participating African economies.

According to the ICRC, the agreement adopted Nigeria’s Customs Modernisation Project as its model.

Indigenous technology at the centre of project

The Nigerian system at the centre of the model is B’Odogwu, an electronic customs platform developed by Nigerian engineers and deployed by the Nigeria Customs Service as part of its digital transformation programme.

ICRC Director-General Jobson Ewalefoh said the adoption of the Nigerian solution demonstrates that locally developed technology can support large-scale infrastructure and trade systems beyond Nigeria.

He said the project had initially faced doubts about the ability of its private-sector partner to deliver the required technology but has since progressed sufficiently to attract continental adoption.

PPP model reduces pressure on government borrowing

The ICRC positioned the project as an example of how PPPs can mobilise private capital for infrastructure without requiring government to finance the entire investment directly.

Under the model, private-sector participation provides funding and technical capacity, while government retains regulatory oversight and benefits from improved public services and revenue collection.

Ewalefoh said the Trade Modernisation Project demonstrates how private investment can contribute to government revenue generation and operational efficiency without placing additional borrowing pressure on the public sector.

This financing structure has wider implications for Nigeria’s infrastructure market, where limited public resources and high borrowing costs continue to constrain the pace of development.

Lekki Deep Sea Port cited as another PPP example

The ICRC also cited the Lekki Deep Sea Port as another example of private capital supporting major infrastructure development in Nigeria.

The Commission said the experience demonstrates the potential for PPPs to deliver infrastructure where government works with private investors under a regulated concession framework.

The approach is consistent with the Federal Government’s broader strategy of using private investment to support infrastructure development and its ambition to build a $1 trillion economy under the Renewed Hope Development Plan 2026–2030.

PPP experience could attract more infrastructure investment

The adoption of Nigeria’s customs model at the continental level could strengthen the country's profile as a market capable of developing and exporting PPP structures and indigenous technology.

For investors, the development also highlights the potential of concession-based infrastructure projects in sectors where government needs to expand capacity but faces fiscal constraints.

A well-structured PPP can transfer some financing, construction and operational responsibilities to private investors while allowing government to maintain regulatory control.

However, successful PPP delivery depends on transparent procurement, clear concession terms, effective regulation, appropriate risk allocation and reliable revenue mechanisms.

Implications for infrastructure and real estate

Although the project focuses on customs modernisation rather than physical housing infrastructure, its implications extend to the wider infrastructure and property markets.

More efficient customs operations can reduce delays and transaction costs associated with international trade. Improved trade infrastructure can also strengthen logistics activity around ports, border crossings, industrial zones and commercial centres.

As trade volumes increase, demand can expand for warehouses, logistics parks, industrial facilities, offices and worker accommodation around major trade corridors.

For Nigeria's property and construction sectors, stronger trade infrastructure therefore has the potential to support the development of industrial and logistics real estate, particularly around strategically located ports and economic corridors.

Nigeria seeks stronger regional PPP cooperation

The ICRC said the AfCFTA project reflects the need for greater regional cooperation in infrastructure development.

Ewalefoh linked the project to his recent call for stronger cooperation on PPPs across West Africa, arguing that a successful project in one country can provide a model for infrastructure development across the region.

The continental adoption of Nigeria’s customs model provides an example of how infrastructure solutions can move beyond national boundaries when governments establish common frameworks and private investors have sufficient confidence in the underlying concession structure.

Outlook

The adoption of Nigeria’s Customs Modernisation Project as the model for the $3.1 billion AfCFTA customs initiative represents a significant development for the country's PPP framework and indigenous technology sector.

For Nigeria, the project provides evidence that locally developed systems can achieve continental relevance when supported by appropriate regulation, private investment and government commitment.

For infrastructure and real estate investors, the wider significance lies in the potential for PPP-led trade modernisation to stimulate investment in logistics, industrial property and supporting infrastructure as African trade integration deepens.

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