Green Chamber Demands Answers on ₦34tn Customs Waivers, Revenue Discrepancies

The House of Representatives Committee on Finance has issued a directive to the Nigeria Customs Service, demanding a comprehensive account of import duty waivers estimated at approximately ₦34 trillion for 2025. The legislative body further requested specific details regarding the beneficiaries of these waivers, the legal justifications for their approval, and the economic objectives they were meant to achieve. This instruction was given on Wednesday during an appearance by the Customs management before the committee, as part of the National Assembly's ongoing oversight responsibilities concerning revenue-generating entities and the implementation of the 2025 budget.

Honourable James Faleke, who chairs the committee and represents the Ikeja Federal Constituency in Lagos State, clarified that while lawmakers do not oppose the Federal Government's policy of granting import duty exemptions, they insist on a transparent process that is subject to legislative review. He indicated that the committee's aim is to ascertain whether these concessions delivered their intended economic benefits and if due process was adhered to during their approval.

Faleke stated, "Waiver is good. It is not a bad thing to grant a waiver. But we want to know those who benefited from the waiver and the purpose of such a waiver. It is okay if you grant a waiver on medical and agricultural products. If you grant a waiver, it is aimed at helping the economy to grow. For example, if you grant a waiver on agricultural products, it is aimed at reducing the cost of food. So, we are not against the waiver. But we want to know the beneficiaries of this ₦34tn waiver."

Import duty waivers are fiscal incentives provided by the Federal Government, allowing certain imports to be exempt from customs duties. These are often employed to bolster strategic sectors like agriculture, healthcare, manufacturing, and infrastructure. Although successive administrations have defended this policy as a means of economic stimulation, critics have consistently voiced concerns regarding its transparency, potential for abuse, and its impact on government revenue.

Beyond the waivers, the committee also challenged the Nigeria Customs Service over what it termed inconsistencies in its revenue reporting, despite the agency consistently exceeding its annual collection targets. Faleke acknowledged Customs' impressive revenue generation but noted that the financial documents presented to the committee did not adequately explain how the agency managed to generate revenue beyond approved projections. He stressed the necessity for a detailed, month-by-month breakdown to enable lawmakers to accurately assess the service's performance.

"We are not going to applaud your efforts now because your account books are not balanced. We know that you want to be transparent, but you have not told us how the excess money you are reporting came about. I can see that in some months, you under-declare your revenue collection and in other months, you overshoot the collection. We want to know what is responsible for this. You have to provide these little details that will help us properly assess your performance," Faleke asserted.

Furthermore, the Deputy Chairman of the committee, Saidu Abdullahi, urged the Federal Government to consider increasing the revenue targets set for Customs, citing the agency's consistent demonstration of greater revenue-generating capacity.

Abdullahi remarked, "I believe that they can do more than the target we give to them. I think we are not pushing them enough. That is why they will always come up with excesses. In 2024, you were given a target of ₦5tn, and you generated ₦6.1tn. In 2025, you were given a target of about ₦6tn and you generated ₦7.2tn. I believe that if we push you enough, you can do better."

In response to the queries, Kikelomo Adeola, the Deputy Comptroller-General in charge of Finance, Administration and Technical Services, speaking on behalf of Comptroller-General of Customs Bashir Adeniyi, clarified that the Nigeria Customs Service is not responsible for approving import duty waivers. She explained that such approvals emanate from the Federal Ministry of Finance, in accordance with existing laws and government policy, with Customs merely tasked with their implementation.

Regarding trade facilitation, Adeola advocated for state governments to invest in inland dry ports, highlighting their crucial role in alleviating congestion at the nation’s seaports and expediting cargo clearance processes.

Adeola stated, "I will encourage all state governments to invest in inland dry ports. That will have a lot of impact on our operations. Any cargo that is marked for such an inland port will not be delayed at the main port. The container will be transported directly to the inland port, where it will be examined. That will reduce the pressure at the nation’s ports and increase trade facilitation in the states."

She also reassured the lawmakers that the majority of cargo scanners at the ports are currently operational, with only a few units undergoing necessary repairs. Ifeanyi Uzokwe, a member of the committee, called for enhanced accountability within the service, proposing sanctions for officers whose negligence leads to equipment malfunctions or delays in cargo processing.

In a related development, the committee also critically examined the operations of the Corporate Affairs Commission (CAC). It instructed the commission to provide comprehensive records of all registered companies and businesses in Nigeria, including details of the registration fees remitted by each entity. Lawmakers further criticised the CAC for its failure to submit audited financial statements to the Fiscal Responsibility Commission (FRC) since 2019, a breach of statutory requirements, and mandated an immediate reconciliation of its accounts with the FRC.

A representative from the Fiscal Responsibility Commission informed the committee that the CAC is indebted to the Federal Government for ₦13.9 billion in unremitted operating surplus, accumulated over several years.

Responding to this, Hussaini Magaji, the Registrar-General of the Corporate Affairs Commission, confirmed that reconciliation efforts with the Fiscal Responsibility Commission are already in progress. He added that both agencies have mutually agreed on a repayment plan, which involves settling the outstanding liability through quarterly instalments of ₦500 million.