The Nigeria Customs Service (NCS) has introduced a penalty interest on designated banks that fail to remit revenue to the government within the prescribed timeframe. According to a statement by NCS spokesperson Abdullahi Maiwada, any bank that delays remittance will be liable to a penalty interest calculated at three percent above the prevailing Nigerian Interbank Offered Rate (NIBOR).
This move is in line with the Service Level Agreement (SLA) signed with designated banks, which mandates adherence to agreed remittance timelines. The NCS explained that affected banks will receive formal notifications detailing the outstanding amount, applicable penalty, and deadline for settlement. Repeated breaches of the SLA may result in stiffer sanctions, including regulatory and administrative measures.
The NCS emphasized the importance of timely remittance of funds, warning that payment of collected revenue into unauthorized accounts will be treated as a serious violation. The service urged all designated banks to strengthen internal controls and comply fully with the terms of the SLA.
The introduction of the penalty interest comes as the Federal Government faces revenue shortfalls, with the Minister of Finance announcing on Tuesday that the 2025 revenue target had been missed. The NCS’ move aims to ensure that all revenue due to the government is remitted promptly, in accordance with the SLA.
The penalty interest rate of three percent above NIBOR will be applied to the duration of the delay, serving as a deterrent to banks that fail to meet the prescribed remittance timelines. The NCS’ decision is expected to promote accountability and transparency in revenue collection, as the service seeks to optimize its revenue generation capabilities.
In recent years, the NCS has taken steps to improve its revenue collection efficiency, including the introduction of digital platforms and strengthened collaboration with other government agencies. The introduction of penalty interest on delayed remittances is the latest measure aimed at ensuring that all revenue due to the government is collected and remitted promptly. With the NCS committed to enforcing the SLA, designated banks are expected to take immediate action to strengthen their internal controls and comply with the agreed remittance timelines.