Customs imposes 3% fine on banks for late revenue remittance

By Godwin Oritse

The Nigeria Customs Service (NCS) has imposed a three per cent penalty on Designated Banks that fail to remit collected revenue within the stipulated timelines, following the discovery of lapses in remittances processed on its B’odogwu platform.

The Service said reconciliation of transactions revealed delays by some banks in transferring revenues due to the Federal Government, a development it noted undermines established remittance obligations and poses risks to the transparency, credibility and effectiveness of government revenue administration.

In response, the NCS said it has commenced enforcement actions in line with the Service Level Agreement (SLA) between the Service and Designated Banks, aimed at safeguarding the integrity of the revenue collection process.

Under the new enforcement regime, any Designated Bank that fails to remit collected Customs revenue within the agreed timeframe will be charged penalty interest at a rate of three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the period of default. Affected banks will be formally notified of the outstanding amount, the applicable penalty and the deadline for settlement.

In a statement issued by the National Public Relations Officer of the Service, Mr. Aliyu Maiwada, the NCS warned that persistent or repeated breaches of the SLA could attract stiffer sanctions, including regulatory and administrative measures, as provided under the Agreement and relevant laws governing Customs revenue collection.

The statement stressed that prompt, accurate and complete remittance of Customs revenue remains a fundamental obligation of Designated Banks. It further cautioned that the payment of collected revenue into unauthorised accounts, whether deliberate or due to error, would be treated as a serious violation and addressed in accordance with the SLA and applicable legal frameworks.

According to the Service, Designated Banks are expected to strengthen their internal control systems, ensure strict compliance with remittance timelines and fully adhere to the provisions of the SLA.

The NCS reaffirmed its commitment to enforcing accountability across the revenue collection value chain, safeguarding government revenue and promoting a transparent and predictable financial system to support national economic development.

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