Senate panel clears Customs of ₦62 billion non-remittance query

Nigeria's Senate Committee on Public Accounts has cleared the Nigeria Customs Service (NCS) of allegations that it failed to remit ₦62.2 billion to the Federation Account. The committee's decision, announced Tuesday, follows an audit report covering 2017 to 2020.

Ibrahim Dankwambo, the committee chairman, indicated that a dedicated ad hoc committee would be formed to reconcile remaining issues. He emphasized that many of the transactions in question occurred before the current Comptroller-General of Customs, Bashir Adeniyi, took office. "We'll set up a small team to sit with you in the next few days," Dankwambo said. "We will set up a small team between the customs and us and iron them out once and for all, and bring only the outstanding issues instead of taking 99 issues that are all the same."

The committee had initially raised approximately 77 audit queries against the NCS. During the audit period, Hammed Ali, a retired colonel, served as Comptroller-General. His tenure was marked by disputes with the National Assembly, including his refusal to wear the Customs uniform and disagreements over import duty policies. Lawmakers had previously called for his removal, but then-President Muhammadu Buhari did not act on the demand.

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We’ll set up a small team to sit with you in the next few days. We will set up a small team between the customs and us and iron them out once and for all, and bring only the outstanding issues instead of taking 99 issues that are all the same.

Responding to the audit observations, Comptroller-General Adeniyi explained that his team had reviewed the queries and found misclassifications and miscalculations. He clarified that the ₦62.2 billion in dispute comprised various levies, some of which are not legally mandated for remittance to the Federation Account. "The N62 billion is all levies and does not go to the federation account," Adeniyi stated. "While most of the levies are to be collected and remitted into the federation account, others like the ones on local production of wheat, textiles and wines do not go into the federation account, the totality of which accounted for the alleged unremitted ₦62.2billion."

Most committee members appeared satisfied with the explanation and encouraged the NCS to continue its efforts to increase government revenue. Senator Osita Izunaso of Imo West noted that many of the audit queries had already been resolved in prior discussions.

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When we read through most of the queries, a good number of them were mixed up either by miscalculation. The N62 billion is all levies and does not go to the federation account. While most of the levies are to be collected and remitted into the federation account, others like the ones on local production of wheat, textiles and wines do not go into the federation account, the totality of which accounted for the alleged unremitted ₦62.2billion.