The Nigeria Customs Service (NCS) has issued a stern warning to designated banks, cautioning them against delays in remitting collected customs revenue to the government's coffers.
Penalty Interest Set at 3% Above NIBOR
In a decisive move to protect public funds, the NCS announced that any bank found defaulting on its remittance obligations will be required to pay a penalty. This penalty interest is calculated at three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the entire duration of the delay. The announcement was made in a statement on Wednesday by the National Public Relations Officer of the NCS, Abdullahi Maiwada.
Maiwada explained that this action is a direct response to reported cases of delayed remittance by some financial institutions following the reconciliation of collections processed through the B'odogwu platform. He emphasized that such delays are a clear violation of the remittance obligations outlined in existing agreements and significantly undermine the efficiency, transparency, and credibility of the government's revenue administration system.
Enforcement Under Mutual Service Agreement
The customs service clarified that this enforcement measure is firmly rooted in the Service Level Agreement (SLA) mutually agreed upon between the NCS and the designated banks. The enforcement process has now officially commenced against institutions that fail to meet the agreed-upon remittance timelines.
According to the detailed statement, any bank that does not transfer collected customs revenue within the stipulated period will be liable for the penalty interest. Affected banks will receive formal notices specifying the exact amounts delayed, the applicable penalties calculated, and clear timelines for settlement.
The NCS further warned that repeated or persistent non-compliance could lead to even more severe consequences. These additional sanctions may include various regulatory and administrative actions, as explicitly provided under the SLA and the relevant laws governing customs revenue collection in Nigeria.
Strict Warning Against Unauthorised Accounts
In a related directive, the Nigeria Customs Service also strongly cautioned against the practice of paying collected customs revenue into any unauthorised accounts. The service described such actions, whether deliberate or accidental, as serious violations that will be dealt with strictly in line with the SLA and applicable legal frameworks.
The NCS advised all designated banks to immediately strengthen their internal controls, ensure strict adherence to remittance deadlines, and fully comply with all terms of their agreements with the service. Reaffirming its core position, the NCS stated that the prompt, accurate, and complete remittance of customs revenue is a fundamental obligation of the appointed banks.
The service reiterated its unwavering commitment to safeguarding government revenue and promoting greater accountability and transparency, which are crucial for supporting national economic development. Under the Nigeria Customs Service Act, all customs duties, excise taxes, and related charges are payable to the service and must be properly remitted. The law provides for penalties, including fines and potential imprisonment, for any individuals or intermediaries, such as banks, that collect but fail to remit customs revenue as legally required.
This development follows a recent report by Legit.ng noting that the Central Bank of Nigeria (CBN) reduced the customs duty exchange rate from N1,487.396/$1 to N1,421.23 per dollar, a move expected to lower the cost of importation into the country.
