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FG granted N34tn import duty waivers in 2025 – Customs

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The Comptroller-General of the Nigeria Customs Service, Bashir Adeniyi, on Monday disclosed that the value of Import Duty Exemption Certificate approvals granted by the Federal Government on selected imported goods and equipment rose to N34tn in 2025, warning that such fiscal incentives have significantly reduced the service’s revenue-generating capacity.

Adeniyi made the disclosure during an investigative hearing of the Senate Committee on Finance with revenue-generating agencies in Abuja.

At the same session, the committee threatened to invoke sanctions against the heads of the Nigerian Civil Aviation Authority, the Small and Medium Enterprises Development Agency of Nigeria, the Industrial Training Fund, the Federal Medical Centre, Jabi, and other agencies for failing to honour its invitation.

Addressing lawmakers, the Customs boss said government fiscal policies often directly affect the agency’s revenue performance, either positively or negatively.

He said although the Nigeria Customs Service remained one of the country’s leading revenue-generating agencies, it could have recorded higher collections over the years if not for government-approved duty waivers and other policy interventions.

According to him, one of the major factors affecting Customs revenue is the Import Duty Exemption Certificate policy introduced in March 2020.

He said, “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.

“Other government-backed waivers included the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, and food import intervention programmes.”

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

He, nevertheless, urged the Federal Government to strengthen monitoring mechanisms to ensure beneficiaries of the waivers deliver the expected outcomes, including lower prices, increased industrial production, and improved access to healthcare.

Earlier in his presentation, Adeniyi told the committee that the Customs Service had generated N4.5tn as of June 30 from its N11.04tn revenue target for 2026, leaving about N7tn to be realised before the end of the fiscal year.

The hearing also exposed disagreements over the alleged non-remittance of operating surpluses by some government agencies.

Representing the Fiscal Responsibility Commission, the Deputy Director of Monitoring and Evaluation, Bello Gulmare, alleged that the Nigeria Customs Service had an outstanding liability of N8.9bn arising from the non-remittance of its operating surplus into the Consolidated Revenue Fund as of 2019.

The claim was, however, rejected by Customs officials.

 

 

Similarly, the commission alleged that the Corporate Affairs Commission owed N13.9bn in unremitted operating surplus covering the period from 2023 to 2025.

Reacting, the Registrar-General of the Corporate Affairs Commission, Hussaini Ishaq Magaji, said the agency had been settling the outstanding obligations gradually.

Following the submissions, the Senate Committee on Finance directed the CAC, the Fiscal Responsibility Commission and the committee’s secretariat to reconcile their records and determine the exact outstanding balance.

Chairman of the committee, Senator Sani Musa (Niger East), said the reconciliation exercise should be concluded within two weeks ahead of another interface with the commission.

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He said, “A detailed report on the outcome of the planned meeting should be ready within the next two weeks for another interface with CAC.

“Heads of agencies like NCAA, ITF, SMEDAN, FMC Jabi and others who failed to physically attend today’s session should unfailingly make themselves available at the next sitting or risk severe sanction through invocation of the relevant section of our rules against them.”

The Senate has in recent months intensified oversight of revenue-generating agencies as part of efforts to improve government earnings, enforce compliance with the Fiscal Responsibility Act, and ensure proper remittance of operating surpluses into the Consolidated Revenue Fund.

The Finance Committee has also been scrutinising the impact of tax waivers and import duty exemptions on the country’s revenue profile amid growing pressure to expand non-oil revenue.

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Jide Kosoko laments debt following N300m movie cinema loss

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Veteran Nollywood actor and filmmaker Jide Kosoko has said he is in debt after his film, Eleko: Oba Esugbayi, failed to recoup its production cost of over N300m in cinemas.

Kosoko disclosed this in a now trending clip from his interview on African A-List published on October 17, where he explained that the money used to produce the film came from investors who expected returns on their investment.

According to him, the film which premiered in the cinemas in March, failed to generate enough revenue to recover its production cost, while the little money earned was shared among those involved.

“My film ‘Eleko: Oba Esugbayi’ that recently came out and we took to the cinemas, cost us over N300 million. Do I have 300 million? You should know that some people gave it to me and it was not that they dashed me, they invested in it and we took the film to the cinemas,” he said.

He added, “Different things happened and we did not earn our money back. The little that was earned was split. As I am, if you hear someone with debt dancing around their neck, it is me.”

PUNCH Online had earlier reported that Kosoko revealed he had been living with diabetes since 1996, saying his decades-long experience with the condition had given him a better understanding of his health.

The actor made this known in an interview on African A-List, uploaded to YouTube on Saturday.

“I became diabetic in 1996; I understand my health better than some doctors do. Do not misquote me. I am not saying I know how to do everything, I just do not want to die,” Kosoko said.

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He also spoke about his personal life, disclosing that he had lost three wives, including the mother of his daughter, Bidemi Kosoko, who died during childbirth.

“I lost my wife during childbirth; that’s Bidemi’s mother. I have lost three wives,” he said.

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Airline extends Saudi flights suspension after Houthi strikes

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UAE national airline Etihad has extended until November 5 its suspension of flights to Riyadh and Dammam in Saudi Arabia, targeted by strikes from Yemen’s Houthis.

Etihad had suspended its service to Riyadh on October 12, two days after a deadly attack on a passenger terminal killed 13 people.

In a statement on Thursday, Etihad specified that flights to and from Riyadh and Dammam would remain suspended due to “operational disruptions”.

On Wednesday evening, two people were killed and eight others wounded in an attack on Dammam airport.

The airport, however, reopened the following day, while the capital’s airport remains closed.

Etihad added that it would operate only daytime flights to the western city of Jeddah, with night flights cancelled until November 5.

In recent weeks, Houthi attacks on Saudi civilian infrastructure including oil facilities and airports have reached a scale unprecedented since the start of the conflict in Yemen in 2014.

AFP

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States push for suspension of Paris Club deductions

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State governors have rejected deductions from allocations due to the states from the Federation Account in the September 2026 revenue-sharing cycle, arguing that the deductions would further squeeze their finances, The PUNCH reports.

The states also called for the suspension of deductions linked to the Paris Club refund to local government councils, alleging that the payments were resumed without prior communication and reconciliation with affected states.

Their opposition comes after the three tiers of government shared N668.4bn less of August 2026 revenue distributed in September, heightening concerns over the impact of lower revenue receipts on states’ ability to meet their financial obligations.

The governors also demanded the redistribution of the proposed N240bn savings, insisting that the funds should be shared among the federal, state and local governments rather than deducted or retained under the proposed arrangement.

The complaints were raised by several state Accountants-General during the technical session of the Federation Account Allocation Committee meeting, according to a report by the committee’s technical sub-committee, dated 14 October, 2026, obtained by The PUNCH on Thursday.

The meeting, held at the Federal Ministry of Finance headquarters in Abuja, considered revenue accounts for August and the amounts available for distribution in September.

The report showed that the total amount recommended for distribution to the federal, state and local governments stood at N2.339tn, compared with N3.007tn shared in the previous month, representing a decline of N668.4bn.

The statutory revenue available for distribution dropped more sharply, falling from N2.283tn in the previous month to N1.566tn in August, a decrease of N717.08bn.

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However, revenue from Value Added Tax increased to N773.23bn from N724.46bn, providing some relief amid the decline in statutory revenue.

The Director of the Federation Account Department, Okolie Rita, who presented the accounts, told the committee that the statutory revenue available for distribution was calculated after deducting N85.71bn and N36.83bn as four per cent costs of collection for the Nigeria Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission, respectively.

The revenue decline triggered calls from state representatives for the Federal Government to release additional funds and reconsider deductions that they said were putting pressure on state finances.

The Accountant-General of Akwa Ibom State, Andrew Essien, observed that August revenue had dropped considerably compared with July and appealed for the proposed N240bn savings to be returned to the distributable pool.

The Accountant-General of Jigawa State, Abdullahi Shehu, recalled an earlier proposal to augment the previous month’s revenue with N250bn, which he said had not been implemented. He urged the committee to combine the promised N250bn with the proposed N240bn savings and redistribute the funds to the three tiers of government.

The Accountant-General of Bayelsa State, Tokoni Ifidi, supported the demands and raised concerns about deductions for the Paris Club refund to local government councils.

She said the deductions were introduced without prior communication to the states, despite what she described as an earlier commitment in 2025 concerning the deductions, which began in February that year and were stopped by a court order in April 2026.

The document read, “AG Akwa Ibom observed a considerable drop in the revenue of August, 2026 compared to July, 2026 and appealed for the proposed savings of N240bn to, instead, be redistributed. AG Jigawa recalled that there was a proposal to augment the previous month’s revenue with the sum of N250bn but it had not been done. He suggested that the N250bn promised in the previous month should be added to the proposed savings of N240bn and be redistributed.”

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The Director of the Federation Account Department explained that the Paris Club deductions were not new, noting that they had previously been suspended following a court order.

The Bayelsa representative, however, maintained that the deductions should continue to be suspended pending reconciliation. She said the Economic and Financial Crimes Commission had held reconciliation sessions with local government councils and was awaiting feedback from the Office of the Accountant-General of the Federation on the commencement and continuation of the deductions.

The Accountant-General of Niger State, Saidu Abdullahi, criticised the handling of the deductions, arguing that the ministry had made a mistake from the beginning by distributing funds without adequate planning and proper communication.

He insisted that previous agreements should be honoured, particularly the proposed N250bn augmentation, while supporting calls for the redistribution of the N240bn savings.

The Accountant-General of Cross River State, Glory Effiong, also backed the demand for the savings to be redistributed, observing that deductions had consumed a substantial portion of the earnings of many states.

She said she had not been invited to any reconciliation meeting on the Paris Club debt since joining the committee and urged the Office of the Accountant-General of the Federation to improve its communication with state representatives.

The Accountant-General of Jigawa State further questioned the amount deducted under security-related expenditure, describing the quantum of deductions as alarming and calling for a review.

The Accountant-General of Nasarawa State, Musa Mohammed, stressed that states should be properly informed and invited to reconciliation meetings before decisions affecting their allocations were implemented.

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Source: punchng.com

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