Senate probes ₦34tn import duty waivers, threatens sanctions for defaulting MDAs

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Senate

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**Orders Customs to submit updated audited accounts within one week
**CAC admits ₦13.9bn unremitted operating surplus; NNPCL GCEO summoned

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By Henry Umoru

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ABUJA — The Senate has threatened to sanction several Ministries, Departments and Agencies (MDAs) for failing to honour invitations to its ongoing investigation into the remittance of internally generated revenue and operating surplus into the Consolidated Revenue Fund (CRF).

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The Senate Committee on Finance warned that agencies including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF) and Federal Medical Centre (FMC), Jabi, risk legislative sanctions if they fail to appear at subsequent hearings.

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Chairman of the committee, Senator Sani Musa (APC, Niger East), also warned that persistent defaulters could be reported to President Bola Tinubu for administrative action.

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The warning came during an investigative hearing into the Federal Government’s issuance of Import Duty Exemption Certificates (IDECs) valued at about ₦34 trillion between March 2020 and December 2025.

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Senator Musa said the probe was aimed at ensuring accountability in the management of public resources and assessing whether fiscal incentives granted by the Federal Government had achieved their intended economic objectives.

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Customs defends duty waivers

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Appearing before the committee, Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, disclosed that import duty waivers approved under the IDEC scheme rose to about ₦34 trillion by 2025.

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He explained that nearly 60 per cent of the waivers covered military hardware imported to strengthen Nigeria’s security architecture, while other beneficiaries included imports of Compressed Natural Gas (CNG), electric and hybrid vehicles, medical equipment, industrial machinery, manufacturing inputs and food commodities under government intervention programmes.

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“IDEC approvals reached about ₦34 trillion in 2025, about 60 per cent of which related to military hardware procurements that attracted duty exemptions because of Nigeria’s prevailing security challenges.

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“Other government-backed waivers included imports of CNG, electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes,” Adeniyi said.

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He argued that duty waivers were deliberate fiscal policy measures intended to support national security, economic growth and social development rather than simply reduce government revenue.

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According to him, fiscal policy should not be assessed solely on the basis of revenue forgone but also on its contribution to industrial development, healthcare delivery, lower production costs and national security.

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He, however, recommended stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver expected outcomes, including lower consumer prices, increased local production and improved healthcare access.

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Customs revenue performance

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The Customs boss also presented the agency’s revenue performance over the past four years.

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According to him, the Service generated ₦3.2 trillion in 2023 against a target of ₦3.67 trillion, representing an eight per cent shortfall, largely due to disruptions in global trade arising from the Russia-Ukraine war and instability in the Middle East.

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He said Customs rebounded in 2024 by generating ₦6.1 trillion, exceeding its target of ₦5.079 trillion by more than 20 per cent.

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In 2025, the Service generated ₦7.2 trillion against a target of ₦6.584 trillion, while ₦4.5 trillion had been realised between January and June 2026 out of an annual target of ₦11.04 trillion.

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Adeniyi also updated lawmakers on the National Single Window project, saying it had entered its second phase with the successful integration of digital platforms operated by relevant government agencies.

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He added that Customs’ ongoing modernisation programme, including electronic payment systems, digital declarations, geospatial intelligence and advanced surveillance technology, had significantly strengthened revenue generation and border management.

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He further disclosed that Nigeria’s export trade had grown by about 70 per cent over the past three years following the establishment of a dedicated export command in 2023.

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FRC raises remittance concerns

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Representing the Fiscal Responsibility Commission (FRC), Deputy Director of Monitoring and Evaluation, Bello Gulmare, alleged that the Nigeria Customs Service had an outstanding ₦8.9 billion liability arising from non-remittance of operating surplus into the Consolidated Revenue Fund as of 2019.

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The Customs Service disputed the claim, insisting that all revenues collected were remitted directly into the Treasury Single Account (TSA) in line with financial regulations.

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The FRC also informed lawmakers that Customs had not submitted audited financial statements beyond 2019.

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The committee consequently directed the Comptroller-General to submit updated audited accounts and comprehensive revenue records within one week.

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CAC admits ₦13.9bn liability

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The committee also examined the Corporate Affairs Commission (CAC), where the FRC alleged ₦13.9 billion in outstanding operating surplus between 2023 and 2025.

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Registrar-General of the CAC, Hussaini Ishaq Magaji, acknowledged the liability but said the commission had begun settling the outstanding amount.

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The committee directed the CAC, the FRC and its own officials to reconcile the figures and submit a detailed report within two weeks.

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Oshiomhole questions vehicle duty policy

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Senator Adams Oshiomhole (APC, Edo North) questioned the Federal Government’s decision to reduce import duties on certain categories of vehicles.

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He argued that lower duties on fairly used vehicles could undermine Nigeria’s automobile assembly industry by encouraging dependence on imported vehicles and discouraging investment in local manufacturing.

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Responding, Adeniyi said Customs merely implements fiscal policies approved by the Federal Government.

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He acknowledged that the policy could reduce Customs revenue but said it was introduced to make vehicles more affordable for Nigerians facing economic hardship.

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NNPCL GCEO summoned

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The hearing later shifted to the Nigerian National Petroleum Company Limited (NNPCL), but proceedings were postponed following the absence of the Group Chief Executive Officer.

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NNPCL Financial Controller, Tajudeen Karim, informed the committee that the company’s Chief Financial Officer was receiving medical treatment.

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The explanation did not satisfy lawmakers, who insisted that only the GCEO and senior management could adequately address issues relating to remittances, compliance with Executive Orders, revenue reconciliation and ongoing reforms.

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The committee consequently rescheduled NNPCL’s appearance to next week and directed the GCEO and other top finance officials to appear in person.

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Senate warns defaulting agencies

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At the close of the hearing, Senator Musa expressed displeasure over the continued absence of several agencies invited to participate in the investigation.

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The affected agencies include the Office of the Accountant-General of the Federation, ITF, Nigerian Communications Commission (NCC), Nigerian Maritime Administration and Safety Agency (NIMASA), Federal Airports Authority of Nigeria (FAAN), Nigerian Railway Corporation (NRC), National Environmental Standards and Regulations Enforcement Agency (NESREA), NCAA, SMEDAN, Nigerian Institute of Transport Technology (NITT), Institute for Agricultural Research (IAR), Nigeria Agricultural Quarantine Service (NAQS), FMC Jabi and the Veterinary Council of Nigeria (VCN).

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He warned that the Senate would no longer tolerate disregard for legislative invitations.

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“Agencies entrusted with public resources must account fully for revenues collected on behalf of the Federal Government. The National Assembly is discharging its constitutional oversight responsibilities, and every government agency will be held accountable for the management of public funds,” Musa said.

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