FG granted N34tn import duty waivers in 2025 – Customs

The Nigeria Customs Service has revealed that the Federal Government approved import duty waivers totaling N34 trillion in 2025. Comptroller-General Bashir Adeniyi stated that these fiscal incentives have "significantly reduced the service’s revenue-generating capacity." He made this disclosure during an investigative hearing by the Senate Committee on Finance.

Adeniyi explained that while the Nigeria Customs Service is a leading revenue generator, its collections could have been higher without government-approved duty waivers. The Import Duty Exemption Certificate (IDEC) policy, introduced in March 2020, is cited as a major factor. He noted that 60% of the N34 trillion in IDEC approvals were for military hardware procurement, a necessary exemption given Nigeria's security challenges. Other significant waivers included those for Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment, and food import programs.

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IDEC approvals reached about N34tn in 2025, 60 per cent of which was rightly granted by the government for military hardware procurement, which attracted duty exemptions because of Nigeria’s prevailing security challenges.

Despite the revenue impact, Adeniyi argued that fiscal policies should not be judged solely on revenue generation, as duty waivers also serve broader economic and social objectives. He urged the government to enhance monitoring mechanisms to ensure that beneficiaries of these waivers achieve the intended outcomes, such as lower prices, increased industrial production, and better access to healthcare. The hearing also touched upon disagreements regarding the alleged non-remittance of operating surpluses by some agencies, with the Fiscal Responsibility Commission noting an N8.9 billion outstanding liability from the Nigeria Customs Service.

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fiscal policy should not be assessed solely on revenue generation, saying that duty waivers also serve broader economic and social objectives.