The House of Representatives has launched an investigation into the massive loss of government revenue and the diversion of containers meant for bonded terminals and warehouses across Nigeria’s ports.
This decision came after lawmakers adopted a motion sponsored by Hon. Hassan Hussain, who raised alarm over the improper assessment of excise duties, unremitted customs levies, and overdue temporary importation schemes managed by officials of the Nigeria Customs Service (NCS).
Lawmakers Alarmed by Container Diversion and Revenue Loss
During plenary on Wednesday, Hon. Hussain explained that bonded terminals and fast-track warehouses were initially designed to decongest ports, enhance trade facilitation, and improve government earnings. However, he said illegal operations at several bonded terminals now threaten both economic stability and national security.
“Containers under customs supervision are being diverted before reaching bonded destinations, and their contents are often unknown,” Hussain warned, adding that such containers could carry dangerous goods, including tramadol or firearms.
Customs Leakages, Quota Abuse, and Tax Evasion Under Scrutiny
The lawmaker also criticized the abuse of the federal government’s three-year tax and excise duty holiday granted to new industries, saying some companies exploit it to avoid legitimate payments. He further revealed that manual excise duty collection still persists, causing frequent assessment errors and under-collection.
Hussain noted that similar leakages occur under the Temporary Importation Scheme, which allows duty-free entry of vessels, aircraft, and heavy machinery for limited periods. Many firms, he said, have overstayed their approved bond durations without remitting the appropriate duties.
He also cited the excessive importation of sugar and other essential goods beyond approved quotas, blaming the continuous recycling and unauthorized expansion of quotas for the loss of billions of naira in government revenue.
Customs Boss, Adeniyi, Ordered to Probe Container Transfers
The House directed the Comptroller-General of Customs, Dr. Adewale Adeniyi, to investigate officials handling container transfers and escorts under bond. Lawmakers urged the NCS to deploy technology to track all containers and ensure that related duties are fully remitted to the federal government.
Additionally, the House Committee on Customs and Excise was mandated to investigate cases of container diversion, excise duty leakages, irregularities in temporary importation, and misuse of import quotas. The committee is expected to submit its findings within four weeks for further legislative action.
