Banks to face 3% penalty for delayed Customs Duty Remittances

In a bid to ensure timely remittance of customs duties, the Nigeria Customs Service (NCS) has introduced a 3% penalty on banks that fail to remit customs revenue within the stipulated time frame. This move is aimed at addressing the recurring issue of delayed remittances resulting in significant revenue losses for the government. Daily Trust […]

In a bid to ensure timely remittance of customs duties, the Nigeria Customs Service (NCS) has introduced a 3% penalty on banks that fail to remit customs revenue within the stipulated time frame.
This move is aimed at addressing the recurring issue of delayed remittances resulting in significant revenue losses for the government.
Daily Trust reports that some banks have been licensed to collect import duty on behalf of the Nigeria Customs Service (NCS).
In all about 23 banks have been integrated into the NCS’s B’Odogwu platform, making it easier for importers to pay duties.
However, our correspondent reports that there have been complaints over delay in remittance by the importers resulting in delays in clearance of goods.
Reacting to the delayed remittance, the Service stated that the 3% penalty will be applied on the total amount of customs duty collected by banks that fail to remit the funds within the specified period.
This penalty is expected to serve as a deterrent and encourage banks to prioritize timely remittances.
The NCS has also warned that any bank that fails to comply with the new directive will face further sanctions, including deactivation from the customs duty collection process.
National Public Relations Officer for the Nigeria Customs Service, Dr. Abdullahi Maiwada, in a statement issued on Wednesday stated that the Service has noted instances of delayed remittance of Customs revenue by some designated Banks following reconciliation of collections processed through the B’odogwu platform.
Maiwada stated that such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.
He explained that in line with the provisions of the Service Level Agreement (SLA) executed between the Nigeria Customs Service and Designated Banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.
“Accordingly, any Designated Bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three percent (3%) above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the duration of the delay. Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement.

 

“The Service further notes that persistent or repeated non-compliance with the terms of the SLA may attract additional sanctions, including regulatory and administrative measures, as provided under the Agreement and relevant laws guiding Customs revenue collection.

 

“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 and addressed in accordance with the SLA and applicable legal frameworks.

“Designated Banks are therefore advised to strengthen internal controls, ensure strict adherence to remittance timelines, and comply fully with the provisions of the SLA. The Service remains committed to enforcing accountability, safeguarding government revenue, and promoting a transparent and predictable financial system in support of national economic development,” he added.