The Nigeria Customs Service (NCS) has begun enforcing penalties against banks that delay remitting collected customs revenue to the government, a move aimed at strengthening financial transparency and protecting public funds. The action was announced in Abuja this week by the NCS’s National Public Relations Officer, Deputy Comptroller Abdullahi Maiwada, who said several banks have failed to meet agreed deadlines for forwarding revenue collected on behalf of the service.
The NCS said it observed instances of delayed remittance during reconciliation of collections processed through its B’odogwu electronic platform, which the agency uses to track payments from importers and other revenue sources. According to the service, these delays breach the terms of the Service Level Agreement (SLA) signed between the Customs and designated banks responsible for transmitting funds to the government.
Under the newly enforced arrangements, any bank that fails to remit the funds within the prescribed timeframe will be liable to pay a penalty interest charge. This will be calculated at three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the period of the delay, the NCS said. Banks found in default will receive formal notifications outlining the amount owed, the interest penalty, and the deadline for settling the outstanding sum.
The customs authority described the failure to transmit funds on time as a serious violation that undermines the efficiency, transparency and integrity of government revenue administration. Maiwada emphasised that prompt remittances are essential in ensuring that the federal government has the resources needed to fund public services and national development.
The NCS also warned that persistent or repeated non-compliance could attract further sanctions beyond the initial penalty interest. These could include regulatory and administrative actions, as provided under the SLA and relevant Nigerian laws governing customs revenue collection. The measure signals the agency’s broader commitment to enforcing accountability and strengthening institutional compliance among financial intermediaries.
Officials said any payment of collected revenue into unauthorised accounts, whether deliberate or due to error, would be treated as a serious contravention of agreed procedures and subject to appropriate action. Banks were urged to review and reinforce their internal control systems to ensure strict compliance with remittance deadlines and to avoid future breaches of the SLA.
The enforcement move comes amid ongoing reforms in Nigeria’s revenue administration, as government agencies seek to reduce leakages, improve monitoring and increase accountability in the handling of public funds. The NCS has been rolling out digital platforms and reconciliation processes intended to deliver real-time tracking of revenue flows and reduce opportunities for delays or discrepancies.
Customs revenue constitutes a significant part of the federal government’s non-oil income, funding key budgetary and development priorities across sectors. The NCS has in recent years intensified efforts to modernise its systems, including greater automation and strict oversight of payment channels, to ensure that funds collected at borders and through trade facilitation are remitted quickly and completely to the Treasury.
Banking sector compliance in revenue remittance has been a longstanding concern in Nigeria, with past disputes over delayed transfers prompting parliamentary scrutiny and calls for stronger enforcement. The current penalties introduced by Customs represent a formal step towards holding financial institutions accountable and improving collaboration between government revenue agencies and banks.
As the enforcement takes effect, stakeholders in both the banking and revenue administration sectors are watching closely to see how the measures will impact the pace of remittances and broader efforts to deepen fiscal discipline. The NCS has reaffirmed its commitment to maintaining a transparent and predictable financial system that supports national economic growth.
