The Nigeria Customs Service (NCS) has introduced a penalty interest for designated banks that fail to remit revenue to the government within the prescribed timeframe. According to NCS spokesperson Abdullahi Maiwada, any bank that delays remittance will be liable for a penalty interest calculated at three percent above the prevailing Nigerian Interbank Offered Rate (NIBOR). This measure aligns with the Service Level Agreement (SLA) signed with the banks, which mandates adherence to agreed remittance timelines.
The NCS explained that affected banks will receive formal notifications detailing the outstanding amount, the applicable penalty, and the deadline for settlement. Repeated breaches of the SLA may result in stricter sanctions, including regulatory and administrative measures. The service emphasized the importance of timely remittance, warning that payments of collected revenue into unauthorized accounts will be treated as a serious violation. It urged all designated banks to strengthen internal controls and fully comply with the SLA terms.
The introduction of the penalty interest comes as the Federal Government faces revenue shortfalls; the Minister of Finance announced on Tuesday that the 2025 revenue target had been missed. The NCS aims to ensure that all revenue due to the government is remitted promptly, with the three‑percent‑above‑NIBOR rate applied for the duration of the delay as a deterrent. This decision is expected to promote accountability and transparency in revenue collection while optimizing the service’s 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 penalty interest on delayed remittances is the latest measure to ensure that all government‑owed revenue is collected and remitted promptly. With the NCS committed to enforcing the SLA, designated banks are expected to take immediate action to reinforce internal controls and meet the agreed remittance timelines.
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