The House of Representatives has directed the Nigeria Customs Service to stop the collection of the Comprehensive Import Suspension Scheme levy with effect from June 30, 2025.
The Chairman, House Committee on Customs and Excise, Leke Abejide (ADC, Kogi) issued the directive on Monday in Abuja during the 2024 budget performance review of N6.11 trn and 2025 budget defence of proposed N6.58 trn.
This is just as the African Democratic Congress lawmaker disclosed that the committee would hold a joint sitting with the Senate Committee on Customs and Excise as well as the Minister of Finance and Economy, Mr Wale Edun, on Wednesday.
On behalf of the committee, Abejide demanded an explanation for the Service’s inability to fully fund its personnel costs, overhead costs, and capital projects despite surpassing the total revenue projection for the year 2024.
He said, “This committee is not unaware that CISS is not backed by any law in Nigeria. It is not in the Laws of the Federation of Nigeria, and even your seven per cent cost of collection is equally illegal, as it is not in the LFN.
“Another shocking revelation is that from January to December 2024, 60 per cent of the one per cent comprehensive import suspension scheme, which was part of the revenue source to fund your overhead, personnel cost, and capital projects, recorded zero revenue.
“Also, payment was made to Web Fountaine Limited, which provided network and automation to NCS, but about 80 per cent of these operations and work schedules have been taken over by the Nigeria Customs Service. Why are you not getting your share of 60 per cent of the one per cent CISS?
“The only legal source of income back by the Act of Parliament as signed by the President of the Federal Republic of Nigeria into Law and gazetted in LFN is the four per cent Free-On Board which can be found in section 18(1a) of Nigeria Customs Service Act, 2023 (Federal Republic of Nigeria official Gazette No. 105 Lagos -9th June, 2023 Vol.110).”
Trouble started when Rivers lawmaker, Awaji-Iniombek Abiante, sought clarification about the legality of the one per cent collection by NCS, stating that the CISS was “not an Act of the parliament, but was handed to us by the military. And this is a democratic dispensation.”
He asked, “I want to find out why you are still operating the illegal one per cent. It is not contained in any Act of this parliament, nor was it a carryover of any decree that would have been part of the laws of the Federation of Nigeria. Can you help us explain why you should continue to implement that illegal scheme?”
Responding, the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, said, “We expected this issue to have started last year, but unfortunately it was suspended. We feel we have to go back and ensure we sensitise our stakeholders.”
Asked whether the Service has carried out sensitisation among relevant stakeholders, he responded, “We are on it. In this case, the CISS, as was discussed last year, we did not receive anything on the one per cent.”
Interjecting, Abejide said: “Do we sit here and allow it to continue? Are you convinced? By the end of this month, June 2025, you must not collect CISS again. You are to collect your four per cent FOB as signed by the President of the Federal Republic of Nigeria.
“This is not a joke. We will challenge you in the court of law. We are not joking. We are representatives of the people. This is a democratic dispensation. Any attempt to try to collect the CISS on July 1 will face the wrath of the law. Go back to what the President used to do in section 18(1a). This is the House of the people.”
Speaking on the 2024 budget performance, Abejide lauded the Service under the leadership of Adewale, saying, “I have gone through your 2024 budget performance and was surprised. I lack words to express the level of poor funding of the Nigeria Customs Service, which made the level of your performance on personnel cost stand at 43.53 per cent, overhead cost at 46.34 per cent, and capital project performance at 45.68 per cent, despite the service surpassing the target of 2024. The target was N5.08tn, and you eventually generated and accounted for N6.11tn, representing an increase of N1.03tn or 20.21 per cent in 2024.
“This committee would like to know that despite outperforming your target, you could not fund your personnel cost, Overhead cost, and Capital projects (both new and ongoing projects.”
In a move aimed at blocking revenue leakages and improving generation, the NCS boss said, “With accelerated clearance and timely release of goods, the floating exchange will remain favourable to trade. Other measures, such as the reintroduction of excise on telecommunication services and Single-Use Plastics policies, are highly recommended.
“Review of the tax expenditure policy of the government to ensure a reasonable application that may not impose maximum negative impact or pressure on revenue. The Service anti-smuggling campaign, using all required operational guides as provided within the confines of Customs laws, will be intensified. This is to ensure that illicit trade that creates a sphere for revenue leakages, as well as economic sabotage, is brought to the barest minimum.
“Capacity building through training and recruitment will be prioritised. This will promote efficiency, intelligence gathering, manpower reinforcement, and most importantly, more revenue generation.”
