By Nathaniel Zaccheaus, Abuja
The Senate Committee on Finance on Monday opened a far-reaching investigation into approximately ₦34 trillion in Import Duty Exemption Certificates (IDECs) granted by successive administrations between 2000 and 2025, amid growing concerns about the impact of the waivers on government revenues and their effectiveness in stimulating economic growth.
The probe came as the committee threatened sanctions against Ministries, Departments and Agencies (MDAs) that failed to honour invitations to its ongoing investigation into the remittance of internally generated revenue and operating surpluses into the Consolidated Revenue Fund (CRF), warning that persistent defaulters could ultimately be referred to President Bola Tinubu for administrative action.
Chairman of the committee, Senator Sani Musa, said the exercise was intended to determine whether the fiscal incentives had delivered measurable economic benefits and whether agencies entrusted with public resources had complied with extant financial regulations governing remittances and accountability.
According to him, while governments have historically used import duty waivers to stimulate industrial growth, support strategic sectors, and respond to national emergencies, concerns remain about their transparency, implementation, and economic value.
“The National Assembly is carrying out its constitutional oversight responsibility, and every agency entrusted with public resources must account fully for revenues collected on behalf of the Federal Government.”
The committee noted that the investigation would cover all import duty exemptions issued over the past 25 years and assess their impact on government earnings, industrial expansion, investment promotion and job creation.
Appearing before the committee, Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, defended the waivers, insisting that they should not be viewed merely as revenue losses but as strategic fiscal interventions designed to support national priorities.
He disclosed that almost 60 per cent of the exemptions approved during the period under review were granted for the importation of military hardware and security equipment to strengthen Nigeria’s security architecture amid rising insecurity nationwide.
According to him, other beneficiaries included imports of Compressed Natural Gas (CNG) vehicles, electric and hybrid automobiles, industrial machinery, medical equipment, healthcare supplies and food commodities introduced under various intervention programmes.
“Fiscal incentives should not be measured solely by the revenue forgone but by their contribution to industrial development, healthcare delivery, lower production costs and national security.”
Adeniyi, however, acknowledged the need for stronger monitoring mechanisms to ensure that beneficiaries of government incentives translate them into lower consumer prices, increased local production, higher employment levels and wider economic gains.
He told lawmakers that Customs had intensified post-clearance audits and compliance checks to ensure that waivers are not abused or diverted from their original objectives.
The hearing also reviewed the revenue performance of the Nigeria Customs Service over the last four years.
Adeniyi disclosed that the Service generated ₦3.2 trillion in 2023 against a target of ₦3.67 trillion, attributing the shortfall largely to disruptions arising from the Russia-Ukraine conflict and instability in parts of the Middle East, which affected global trade flows and import volumes.
He said the agency rebounded strongly in subsequent years, collecting ₦6.1 trillion in 2024 against a target of ₦5.079 trillion and ₦7.2 trillion in 2025 against a target of ₦6.584 trillion.
According to him, revenue collections for the first half of 2026 had already reached approximately ₦4.5 trillion out of an annual target of ₦11 trillion.
The Customs boss expressed optimism that ongoing reforms, improved cargo throughput and digital innovations would strengthen collections in the second half of the year.
The committee also examined the implementation of the National Single Window project, which Customs said had entered its second phase following the integration of digital platforms operated by several government agencies involved in trade facilitation.
Adeniyi disclosed that Customs’ modernisation programme, involving electronic payment systems, digital declarations, geospatial intelligence, and advanced surveillance technology, had significantly improved revenue collection, cargo processing, and border management.
He further revealed that Nigeria’s export trade had expanded by approximately 70 per cent over the last three years following the creation of a dedicated export command in 2023.
During the session, Senator Adams Oshiomhole raised concerns over the Federal Government’s decision to reduce import duties on certain categories of vehicles, warning that the policy could undermine investments in local automobile assembly plants.
“Lower import duties on fairly used vehicles could discourage investment in local manufacturing and weaken efforts to develop the domestic automotive sector.”
Responding, Adeniyi maintained that the Nigeria Customs Service merely implements fiscal policies approved by the Federal Government and does not determine them.
“The Nigeria Customs Service has no authority to formulate fiscal policy; our responsibility is implementation.”
The Fiscal Responsibility Commission (FRC), which also appeared before the committee, informed lawmakers that Customs had not submitted audited financial statements beyond 2019 and currently had an estimated operating surplus liability of about ₦8.9 billion, subject to reconciliation with more recent records.
Consequently, the committee directed the Customs Service to submit updated audited accounts and detailed revenue records within one week.
The hearing also exposed fresh concerns at the Corporate Affairs Commission (CAC), where the FRC disclosed an outstanding unremitted revenue liability exceeding ₦13.9 billion covering the period between 2023 and 2025.
Registrar-General of the CAC, Hussaini Ishaq Magaji, acknowledged the liability and assured lawmakers that repayment had already commenced.
“The Commission has already begun gradual repayment of the outstanding amount.”
Although lawmakers commended the CAC’s revenue performance, they described the outstanding remittance as unacceptable and ordered a reconciliation exercise involving the Commission, the Fiscal Responsibility Commission and the committee secretariat.
Attention later shifted to the Nigerian National Petroleum Company Limited (NNPCL), but proceedings were stalled due to the absence of the company’s Group Chief Executive Officer.
NNPCL Financial Controller, Tajudeen Karim, informed senators that the Chief Financial Officer was receiving medical treatment and therefore could not attend the session.
The explanation failed to convince members of the committee, who insisted that only the Group Chief Executive Officer and senior finance officials could adequately address issues relating to remittances, Executive Orders and revenue reconciliation.
The committee subsequently directed the NNPCL GCEO and top finance officials to appear in person before it next week.
At the close of proceedings, Senator Musa expressed displeasure over the continued absence of several invited agencies, including the Office of the Accountant-General of the Federation, the Nigerian Communications Commission (NCC), the Nigerian Maritime Administration and Safety Agency (NIMASA), the Federal Airports Authority of Nigeria (FAAN), the Nigerian Railway Corporation (NRC), the National Environmental Standards and Regulations Enforcement Agency (NESREA), the Nigerian Civil Aviation Authority (NCAA), the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and others.
“The Senate will no longer tolerate repeated disregard for legislative invitations by agencies entrusted with public resources.”
He warned that agencies that continue to ignore invitations risk legislative sanctions and possible referral to President Tinubu for further action.
The committee maintained that the investigation was not designed to discourage legitimate fiscal incentives but to ensure that waivers granted over the years achieved their intended objectives and did not become channels for revenue leakages or abuse of government concessions.
