The Nigeria Customs Service (NCS) has taken a decisive step to clamp down on financial institutions that delay the remittance of government revenue, introducing a significant financial penalty and the threat of public shaming.
Stiff Penalties for Delayed Remittances
In a move aimed at safeguarding federal revenue and streamlining port operations, the NCS has declared that any bank which fails to transfer collected customs duties within the stipulated timeframe will face a penalty of three per cent on the total amount withheld. This announcement was made on Wednesday, December 18, 2025, by the National Public Relations Officer of the Service, Dr. Abdullahi Maiwada.
The penalty is not the only consequence for erring banks. The Customs authority has also warned that it may publish the names of defaulting institutions. For banks that are repeat offenders, even stiffer sanctions are on the table, which could include being deactivated from the duty collection process entirely.
Breach of Agreement Undermines Port Efficiency
This crackdown follows persistent operational headaches caused by banks' delays. Despite the integration of about 23 commercial banks into the NCS's electronic payment platform, B'odogwu, designed to enhance transparency and speed, some institutions have been slow to forward collected funds.
Dr. Maiwada stated that the Service identified multiple instances of delayed remittances after reconciling transactions on the B'odogwu platform. He described these delays as a clear breach of the Service Level Agreement (SLA) between the NCS and the designated banks. This malpractice has a direct negative impact, causing revenue shortfalls for the government and frustrating importers whose cargo clearance is stalled despite making prompt payments.
Enforcement Actions and Final Warnings
The NCS has confirmed that enforcement actions have already commenced. Affected banks will receive formal notifications detailing the delayed amount, the calculated penalty, and a deadline for settlement. The Service emphasized that the 3% penalty will apply for the entire duration of the delay, acting as a strong deterrent.
In a stern final warning, the Customs Service clarified that any payment of collected government revenue into unauthorized accounts, whether intentional or accidental, will be treated as a serious violation. Banks have been urged to strengthen their internal controls and strictly adhere to remittance timelines to avoid penalties and protect the integrity of Nigeria's revenue administration system.
