House Of Reps

The House of Representatives Committee on Customs and Excise has ordered the Nigeria Customs Service (NCS) to halt the collection of two controversial levies — the 1% Comprehensive Import Supervision Scheme (CISS) charge and the 7% cost of collection — declaring them illegal and lacking statutory backing.

The directive was issued on Monday by the Committee Chairman, Hon. Leke Abejide (ADC, Kogi), during a budget defence session on the NCS’s 2025 fiscal proposal.

According to Abejide, the only revenue stream recognised by law for funding the NCS is the 4% Free-on-Board (FOB) allocation as stated in Section 18(1a) of the Nigeria Customs Service Act, 2023. He warned that while the Committee would permit the continued collection of the CISS and 7% cost of collection until June 30, 2025, any extension beyond that date would be considered illegal and subject to legal action.

Responding to the Committee, Deputy Comptroller General of Customs in charge of Finance, Bello Mohammed Jibo, who represented the Comptroller General, explained that the implementation of the 4% FOB allocation had been temporarily suspended to allow for stakeholder sensitisation. However, Abejide rejected the explanation and insisted on compliance with the law.

He said the Committee found it troubling that despite Customs exceeding its 2024 revenue target by generating ₦6.105 trillion — 20.21% above the ₦5.079 trillion target — the service still underperformed in key budget areas. Personnel costs reached only 43.53%, overheads 46.34%, and capital projects 45.68%. More troubling, according to him, was the complete lack of remittance of the 60% share of the CISS levy meant for the NCS in 2024.

Abejide pointed out that the CISS was originally established to fund service providers such as COTECNA, SGS, and Global Scan, which previously handled valuation and scanning services. However, with most of those functions now internalised by the NCS, he questioned the continued relevance of the levy.

“The 1% CISS and 7% cost of collection are not listed in the Laws of the Federation. They are not backed by any Act of Parliament. The only recognised source of funding is the 4% FOB allocation, signed into law and gazetted,” he said.

In defence, DCG Jibo outlined several constraints affecting Customs operations, including policy-induced duty exemptions, cargo throughput decline, and the floatation of the naira. He noted that exemptions from customs duties and import VAT on key food items, as well as delays in the 2023 fiscal policy rollout, impacted revenue in 2024.

Despite these challenges, he said the NCS achieved commendable results and remains focused on its 2025–2027 fiscal strategy. Jibo also highlighted the introduction of the Unified Customs Information System for automating procedures, along with reforms such as the Authorised Economic Operator (AEO) and Advanced Rulings programme, aimed at facilitating trade and improving revenue.

He further noted ongoing efforts to intensify anti-smuggling operations and improve border security through greater stakeholder collaboration, surveillance equipment, and new scanning systems.

Looking ahead, Jibo proposed additional revenue-enhancing measures, including the reintroduction of excise duties on telecom services and single-use plastics, as well as a review of tax expenditure policies to minimise their negative impact on national revenue.

He reaffirmed the service’s commitment to fighting smuggling and economic sabotage while enhancing compliance and efficiency through technology-driven reforms. However, unless the levies in question are legally backed, the Customs Service now faces a firm deadline to cease their collection by July 1, 2025.