The Nigeria Customs Service (NCS) has called on the Senate to review import duty waivers and amend the Nigeria Customs Service Act 2023, arguing that the current waiver regime is being abused and undermining revenue generation. The Comptroller-General of Customs, Adewale Adeniyi, made the appeal during a public hearing on the Act's amendment, organized by the Senate Committee on Customs, Excise and Tariff.
Revenue Leakages from Waivers
Adeniyi revealed that the service recorded over N1.2 trillion in import duty waivers in 2024 alone, a significant portion of which he said was not backed by proper justification. He noted that many waivers are granted to companies that do not meet the eligibility criteria, leading to revenue leakages and unfair competition.
According to Adeniyi, the current provisions in the 2023 Act are vague and lack stringent oversight mechanisms. He stressed the need for a more transparent and accountable process for granting waivers, suggesting that the Senate should introduce stricter conditions and periodic reviews.
Proposed Amendments to the Act
The Customs boss outlined several key amendments to the Nigeria Customs Service Act 2023, including the introduction of a centralized database for all waiver approvals, mandatory quarterly reports to the National Assembly, and the establishment of a joint committee to evaluate the economic impact of each waiver. He also proposed that waivers be limited to strategic sectors such as agriculture, healthcare, and renewable energy.
“We cannot continue to sacrifice revenue on the altar of poorly implemented policies. The amendment will help us plug loopholes and ensure that every waiver granted translates into tangible national development,” Adeniyi stated.
Senate's Response
The Chairman of the Senate Committee on Customs, Senator Jibrin Barau, acknowledged the concerns raised by the NCS and assured that the committee would work with the service to produce a robust legal framework. He noted that the 2023 Act was enacted to modernize customs operations but admitted that implementation challenges have surfaced.
“We are committed to ensuring that the Act serves its purpose without stifling legitimate trade. We will consider all submissions and come up with amendments that balance revenue needs and economic growth,” Barau said.
Stakeholders' Perspectives
Other stakeholders at the hearing, including representatives from the Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), expressed mixed reactions. While some supported the review, they cautioned against blanket removal of waivers, which could increase production costs and affect local industries.
The NCS has also proposed an increase in penalties for false declarations and smuggling, as well as the adoption of advanced technology for cargo tracking and valuation. The committee is expected to submit its report to the Senate for consideration in the coming weeks.
