Customs cracks down on banks over late revenue transfers

The Nigeria Customs Service (NCS) has begun enforcing penalties on designated banks that delay the remittance of Customs revenue, in a bid to enhance transparency and safeguard government earnings.

According to the Service, delays in remitting collections processed through its B’odogwu electronic platform breach agreed obligations and undermine the efficiency, transparency, and integrity of government revenue administration.

In a statement on Wednesday, Deputy Comptroller of Customs and National Public Relations Officer Abdullahi Maiwada said the enforcement aligns with the Service Level Agreement (SLA) between the NCS and designated banks responsible for collecting Customs revenue on behalf of the Federal Government.

“Any bank that fails to remit collected Customs revenue within the prescribed period shall incur a penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay,” the statement read.

Affected banks will receive formal notifications detailing the delayed amounts, applicable penalties, and deadlines for settlement.

The NCS warned that repeated violations of the SLA could attract stricter sanctions, including regulatory and administrative measures, as provided under the agreement and relevant laws.

Payments into unauthorised accounts, whether intentional or accidental, will also be treated as serious violations.

The Service urged designated banks to strengthen internal controls, comply strictly with remittance timelines, and adhere fully to the terms of the SLA, reaffirming its commitment to protecting government revenue and promoting a transparent and predictable financial system.

Customs revenue remains a key component of the Federal Government’s non-oil income, financing crucial budgetary and development priorities.

The NCS has, in recent years, implemented reforms including automation, monitoring, and reconciliation of collections through platforms like B’odogwu to improve efficiency and reduce leakages.

The latest enforcement action is part of broader efforts by revenue agencies to tighten controls, boost remittances, and support the government’s fiscal discipline initiatives.

The NCS has a 2025 revenue target of N10 trillion and recorded N3.6 trillion in collections during the first half of the year.