The Nigeria Customs Service (NCS) has disclosed that import duty waivers granted by the Federal Government rose to about ₦34 trillion in 2025, significantly affecting the agency’s revenue generation.
The Comptroller-General of Customs, Bashir Adeniyi, made the disclosure on Monday during an investigative hearing by the Senate Committee on Finance, where revenue-generating agencies appeared before lawmakers.
According to Adeniyi, import duty exemption certificates (IDECs), introduced in 2020, have continued to reduce the amount of revenue the Customs Service is able to collect.
He explained that about 60 percent of the waivers were approved for the importation of military hardware to strengthen Nigeria’s security, while others covered Compressed Natural Gas (CNG), electric and hybrid vehicles, medical equipment, industrial machinery, manufacturing inputs, and food import intervention programmes.
Adeniyi noted that although the waivers reduced Customs revenue, they were introduced to support key sectors of the economy and achieve broader national objectives beyond revenue generation.
During the hearing, Senator Adams Oshiomhole questioned the government’s decision to reduce import duties on certain categories of vehicles, warning that the policy could discourage local vehicle assembly and increase Nigeria’s dependence on imported automobiles.
Responding, the Customs boss said the agency only implements government-approved fiscal policies and does not determine import duty rates.
He added that the reduced duties were designed to make vehicles more affordable for Nigerians despite the impact on Customs revenue.
Adeniyi also briefed lawmakers on the progress of the National Single Window (NSW) initiative, saying ongoing digital integration among government agencies would improve trade efficiency, transparency and Nigeria’s competitiveness.
He, however, called for stricter monitoring of beneficiaries of import duty waivers to ensure the incentives translate into lower prices, increased local production and improved healthcare services.
The Customs boss further revealed that the agency generated ₦4.5 trillion as of June 30, 2026, against its annual revenue target of ₦11.04 trillion, leaving about ₦7 trillion to be realised before the end of the year.
