Nigeria Customs Sends Warning to Banks over Collected Revenue
- The Nigeria Customs Service has warned banks against delaying the remittance of collected customs revenue
- Defaulting banks would pay penalty interest set at three per cent above the prevailing NIBOR
- The NCS said the move is aimed at protecting government revenue and improving transparency
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigeria Customs Service (NCS) has warned designated banks that fail to remit collected customs revenue within the approved timeframe that they will face sanctions, including penalty charges.
The service said any defaulting bank would be required to pay penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the duration of the delay, The Sun reported.
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According to a statement issued on Wednesday, December 17 by the National Public Relations Officer of the NCS, Abdullahi Maiwada, the warning follows reported cases of delayed remittance by some banks after reconciliation of collections processed through the B’Odogwu platform.
Maiwada noted that such delays violate remittance obligations under existing agreements and undermine the efficiency, transparency and credibility of government revenue administration.
Sanctions in line with Customs, banks' mutual agreement
He explained that the action is in line with the Service Level Agreement (SLA) between the NCS and designated banks, adding that enforcement measures have now commenced against institutions that fail to meet agreed remittance timelines.
The statement added that any bank that does not remit collected Customs revenue within the stipulated period would be liable to penalty interest at three per cent above NIBOR. Affected banks, it added, would receive formal notices detailing the delayed amounts, applicable penalties and timelines for settlement.
The service further warned that repeated or persistent non-compliance could attract additional sanctions, including regulatory and administrative actions, as provided under the SLA and relevant laws guiding customs revenue collection.
Customs frowns against use of unauthorised accounts
The NCS also cautioned against the payment of collected customs revenue into unauthorised accounts, describing such actions, whether deliberate or not, as serious violations that would be handled in line with the SLA and applicable legal frameworks.
It advised designated banks to strengthen internal controls, ensure strict compliance with remittance timelines, and fully adhere to the terms of their agreements with the service.
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Reaffirming its position, the NCS said prompt, accurate and complete remittance of customs revenue is a core obligation of designated banks. It added that it remains committed to protecting government revenue and promoting accountability and transparency in support of national economic development.
Under the Nigeria Customs Service Act, customs duties, excise taxes and other related charges are payable to the service and must be properly remitted. The law provides for penalties, including fines and possible imprisonment, for individuals or intermediaries, such as banks, that collect customs revenue but fail to remit it as required.
CBN crashes Customs exchange rate
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) reduced the Customs duty rate from N1,487.396/$1 to N1,421.23 per dollar, a move that could reduce the cost of importation.
In a directive issued in 2024, the CBN instructed the Nigeria Customs Service and other relevant parties to use the closing foreign exchange rate on the day a Form M is opened for import transactions as the standard for calculating import duties.
The drop in the customs duty rate followed the naira appreciation against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Thursday, November 6, reversing losses recorded in the previous session.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
