Delayed or unremitted revenue may trigger a major conflict between the Nigeria Customs Service (NCS) and deposit money banks (DMBs), even as the latter has already been accused of breaching the terms of the agreement.
This comes after a protracted disagreement between DMBs and telecommunications operators over unremitted USSD charges, which amount to billions of naira.
Yesterday, the NCS announced that it has begun enforcing penalties against commercial banks that failed to promptly remit collected customs revenue, as part of measures to strengthen revenue transparency and protect government earnings.
The Service expressed concern over recurring instances of delayed remittance by designated banks following reconciliation of collections processed through its B’odogwu electronic platform, describing such delays as breaches of contractual obligations.
Deputy Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, disclosed this in a statement on Wednesday, noting that the delays undermine the efficiency, transparency and integrity of government revenue administration.
According to the statement, the enforcement action is anchored on provisions of the Service Level Agreement (SLA) executed between the NCS and designated banks responsible for collecting customs revenue on behalf of the Federal Government.
“The Nigeria Customs Service has noted instances of delayed remittance of Customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform. Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration,” the statement read.
Maiwada explained that any bank failing to remit collected customs revenue within the prescribed timeline would be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the period of delay.
He added that affected banks would receive formal notifications indicating the delayed amounts, applicable penalties and deadlines for settlement.
The NCS warned that persistent or repeated violations of the SLA could attract stiffer sanctions, including regulatory and administrative measures, as provided under the agreement and relevant laws guiding customs revenue collection.
The NCS further cautioned that any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, would be treated as serious violations and addressed in accordance with the SLA and applicable legal frameworks.
“The NCS reiterates that prompt, accurate, and complete remittance of Customs revenue is a fundamental obligation of designated banks. Any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, will be treated as a serious violation,” the statement added.
The Service advised designated banks to strengthen their internal control mechanisms, ensure strict compliance with remittance timelines and fully adhere to the terms of the agreement.
Customs revenue continues to play a pivotal role in the Federal Government’s non-oil earnings, underpinning key budgetary commitments and development programmes.
In recent years, NCS has stepped up reforms focused on automation, monitoring and reconciliation of collections, including the rollout of digital platforms such as B’odogwu, aimed at curbing leakages and enhancing operational efficiency.
The latest enforcement action aligns with broader efforts by revenue-generating agencies to strengthen controls, increase remittances and support the government’s push for improved revenue mobilisation.
The NCS is targeting N10 trillion this year, after generating N3.6 trillion in the first half of the year.
