Nigerian Senate probes N34 trillion in import duty exemptions

Nigeria's Senate Committee on Finance has launched a fresh investigation into Import Duty Exemption Certificates (IDEC), collectively valued at around N34 trillion, issued between March 1, 2000, and December 2025. The panel is scrutinizing the significant impact these waivers have on government revenue.

During an investigative hearing, the committee issued a stern warning to numerous Ministries, Departments, and Agencies (MDAs) that have failed to attend its hearings on the remittance of internally generated revenue and operating surplus to the Consolidated Revenue Fund. Lawmakers threatened legislative and administrative sanctions against non-compliant agencies and indicated they would report persistent offenders to President Bola Ahmed Tinubu.

The Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi, appeared before the committee to explain the service's revenue performance, fiscal policy implementation, and reforms. He defended the import duty waivers, explaining that nearly 60% of the approvals were for military hardware to bolster national security. Other exemptions covered essential items such as Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment, medical supplies, industrial machinery, and food imports aimed at curbing inflation.

Adeniyi argued that fiscal incentives should be evaluated not only for revenue generation but also for their broader economic objectives, including stimulating industrial production, reducing essential commodity costs, improving healthcare, and strengthening national security. He recommended enhanced monitoring mechanisms to ensure beneficiaries of these waivers achieve the intended economic outcomes, such as lower consumer prices and increased local production. The committee also heard that the waiver for fairly used vehicles was intended as a relief measure for Nigerians, while the Corporate Affairs Commission (CAC) faced scrutiny over N13.9 billion in unremitted funds.

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Fiscal incentives should not be viewed solely through the prism of revenue generation but should also be assessed based on their wider economic objectives.