The Nigeria Customs Service has announced its intention to impose penalties on designated banks that fail to remit customs revenue on time. This move aims to enhance transparency and protect government earnings. According to a statement released by the service’s spokesman, Abdullahi Maiwada, delays in remitting customs revenue undermine the efficiency, transparency, and integrity of government revenue administration.
The Nigeria Customs Service has observed instances of delayed remittance of customs revenue by some designated banks after reconciliation of collections processed through the e-payment platform. Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration. The service has executed a Service Level Agreement with designated banks, which outlines the terms and conditions for remitting customs revenue.
In line with this agreement, the Nigeria Customs Service will commence enforcement actions against banks found to be in default of agreed remittance timelines. Any bank that fails to remit collected customs revenue within the prescribed timeline will be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of the delay. Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement.
The decision to impose penalties on defaulting banks is aimed at ensuring that government revenue is collected and remitted efficiently. The Nigeria Customs Service is responsible for collecting customs revenue on behalf of the government, and any delay in remitting this revenue can have significant implications for the country’s finances. By enforcing penalties on defaulting banks, the service hopes to promote transparency and accountability in the collection and remittance of customs revenue.
The move is also expected to improve the overall efficiency of government revenue administration in Nigeria. The Nigeria Customs Service has been working to strengthen its revenue collection processes, and the imposition of penalties on defaulting banks is a key part of this effort. As the service continues to work towards enhancing transparency and accountability, it is likely that similar measures will be introduced to ensure that all government revenue is collected and remitted efficiently.
