The Senate Committee on Finance on Monday opened a fresh probe into the federal government's issuance of Import Duty Exemption Certificates (IDEC) valued at about N34 trillion between March 1, 2000 and December 2025.
The panel raised concerns over their impact on government revenue even as the Nigeria Customs Service (NCS) defended the waivers as strategic fiscal interventions designed to address security, economic and social challenges.
The committee, chaired by Senator Sani Musa, also issued a stern warning to several Ministries, Departments and Agencies (MDAs) that failed to honour invitations to its ongoing investigative hearing into the remittance of internally generated revenue and operating surplus to the Consolidated Revenue Fund (CRF) between 2023 and 2025.
The lawmakers threatened legislative and administrative sanctions against the defaulting agencies and warned that persistent non-compliance could be reported to President Bola Ahmed Tinubu.
Follow us on WhatsApp | LinkedIn for the latest headlines
The hearing featured the appearance of the Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi, who gave detailed explanations on Customs' revenue performance, fiscal policy implementation, import duty waivers, Treasury Single Account (TSA) compliance and ongoing reforms aimed at improving trade facilitation.
A major highlight of the session was the disclosure that Import Duty Exemption Certificates issued by the federal government had risen to about N34 trillion in 2025.
Responding to senators' concerns over the growing value of the exemptions, Adeniyi explained that nearly 60 per cent of the approvals related to military hardware were imported to strengthen Nigeria's security architecture in response to prevailing security challenges across the country.
He added that the exemptions also covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs as well as food import intervention programmes designed to reduce inflationary pressures.
According to the Customs boss, fiscal incentives should not be viewed solely through the prism of revenue generation but should also be assessed based on their wider economic objectives.
He argued that such incentives were intended to stimulate industrial production, reduce the cost of essential commodities, improve healthcare delivery and strengthen national security.
Adeniyi however recommended the government establish stronger monitoring mechanisms to ensure that beneficiaries of duty waivers actually delivered the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
Earlier in the session, senators recalled previous deliberations on the rapid increase in duty exemptions and the need for the Minister of Finance to provide explanations on the fiscal implications of the policy.
The committee also examined Customs' revenue performance over the last four years.
Adeniyi disclosed that the Service recorded N3.2 trillion against a target of N3.67 trillion in 2023, representing a shortfall of about eight per cent.
He said revenue collection improved significantly in 2024 when Customs generated N6.1 trillion, exceeding the target of N5.079 trillion by more than 20 per cent.
For 2025, he said the Service realised about N7.2 trillion, surpassing the target of N6.584 trillion, while revenue generated as of June 2026 stood at approximately N4.5 trillion against a yearly target of N11 trillion.
The Comptroller-General attributed fluctuations in revenue performance to external developments, including disruptions in global cargo movement arising from the Russia-Ukraine war and tensions in the Middle East, particularly the Iran crisis.
He nevertheless expressed optimism that cargo volumes had started recovering, noting that figures recorded in July showed encouraging improvements.
The Fiscal Responsibility Commission (FRC), which also appeared before the committee, informed lawmakers that government-approved import duty waivers on food commodities such as maize and rice had substantially reduced Customs revenue.
The Commission, however, confirmed that all revenues collected by Customs were remitted directly into the Treasury Single Account in compliance with extant financial regulations.
The committee also examined the federal government's recent reduction of import duties on vehicles.
During the session, Senator Adams Oshiomhole questioned the policy, arguing that lowering import duties on certain categories of vehicles, including fairly used vehicles, could undermine Nigeria's local automobile assembly industry.
While acknowledging that Customs merely implements government directives, Oshiomhole maintained that encouraging cheaper imports could discourage investments in domestic vehicle manufacturing.
Responding, Adeniyi stressed that Customs had no role in formulating fiscal policies but was only responsible for implementing decisions approved by the federal government.
He admitted that the reduced tariffs would affect Customs revenue but explained that the measure was introduced to make vehicles more affordable for Nigerians grappling with rising economic hardship.
The committee also reviewed the progress of the National Single Window project, with Adeniyi disclosing that implementation had entered its second phase.
According to him, systems operated by relevant government agencies had already been integrated, while extensive sensitisation programmes had been carried out for importers, exporters, shipping companies, airlines and port operators.
Although he acknowledged operational challenges associated with the rollout, he described them as expected for a project of such magnitude and expressed confidence that the initiative would improve transparency, trade efficiency and Nigeria's competitiveness.
On Customs' ongoing modernisation programme, the Comptroller-General said the deployment of electronic payment platforms, digital declarations, geospatial intelligence and surveillance technology had significantly strengthened revenue collection and border enforcement.
He also disclosed that Nigeria's export trade had expanded by about 70 per cent over the past three years following the establishment of a dedicated export command in 2023.
The Fiscal Responsibility Commission also informed the committee that the Nigeria Customs Service had yet to submit audited financial statements beyond 2019.
According to the Commission, Customs currently has an estimated outstanding operating surplus liability of about N8.9 billion, although the exact figure can only be determined after reconciliation of more recent audited accounts.
Consequently, the committee directed the Comptroller-General to submit comprehensive revenue records and updated audited financial statements within one week.
Also at the investigative hearing, the Corporate Affairs Commission (CAC) informed the panel that over N13.9billion unremitted revenue against the agency from its operations covering 2023 to 2025.
Registrar-General of CAC, Hussaini Ishaq Magaji, who appeared before the committee, confirmed the outstanding liability but assured the committee that the money was being paid gradually.
The outstanding liability was disclosed by the Fiscal Responsibility Commission (FRC) after the Chairman of the Senate Committee, Senator Sani Musa, asked the representative of the FRC to verify the remittances of CAC.
Although senators commended the CAC for its "impressive" revenue performance, they also queried the N13.9bn liability, which they considered to be on the high side.
Following the submission by Magaji that CAC was offsetting the liability gradually, Musa directed that CAC, the FRC and the committee should hold a meeting to reconcile the details in order to ascertain the exact outstanding balances.
Proceedings later shifted to the scheduled appearance of NNPC Limited, which was eventually postponed after the Group Chief Executive Officer failed to attend.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
NNPCL's Financial Controller, Tajudeen Karim, informed the committee that the company's Chief Financial Officer was receiving medical treatment, prompting several senators to insist that only the GCEO and relevant top executives could adequately respond to issues under investigation.
The committee subsequently adjourned NNPC's appearance until next week and directed that the GCEO and senior finance officials must appear in person to explain the company's remittances to the Federation Account, compliance with Executive Orders, monthly revenue reconciliation and gains from ongoing reforms.
At the close of the hearing, Senator Musa expressed displeasure over the absence of several government agencies invited to the investigative hearing.
He warned the Senate would no longer tolerate repeated disregard for legislative invitations and declared that agencies that persistently failed to appear risked legislative sanctions and possible referral to President Tinubu for appropriate administrative action.
The chairman listed the defaulting agencies as the Office of the Accountant-General of the Federation (OAGF), Industrial Training Fund (ITF), Nigerian Communications Commission (NCC), Nigerian Maritime Administration and Safety Agency (NIMASA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Railway Corporation (NRC).
Others are, the National Environmental Standards and Regulations Enforcement Agency (NESREA), Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigerian Institute of Transport Technology (NITT), Institute for Agricultural Research (IAR), Zaria, Nigeria Agricultural Quarantine Service (NAQS), Federal Medical Centre (FMC), Jabi, and the Veterinary Council of Nigeria (VCN).
Musa said the Senate was merely carrying out its constitutional oversight responsibilities and vowed that every agency handling public resources must account fully for revenues collected on behalf of the federal government.
