Banks Risk 3% Penalty for Delayed Customs Duty Remittances

The Nigeria Customs Service has cautioned designated banks that any delay in remitting collected customs revenue will attract penalty interest set at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of default.

The warning follows reported cases of delayed revenue remittances by some designated banks after reconciliation of collections processed through the B’odogwu platform.

In a statement issued on Wednesday, the National Public Relations Officer of the service, Abdullahi Maiwada, said such delays violate agreed remittance obligations and undermine the efficiency, transparency, and integrity of government revenue administration.

He noted that, in line with the Service Level Agreement between the Nigeria Customs Service and designated banks, enforcement actions have commenced against institutions found to be in breach of remittance timelines.

According to the statement, any designated bank that fails to remit collected customs revenue within the stipulated period will be charged penalty interest calculated at three per cent above the prevailing NIBOR for the duration of the delay. Affected banks will receive formal notices detailing the outstanding amount, applicable penalties, and deadlines for settlement.

The service added that repeated or persistent non-compliance with the SLA could result in further regulatory and administrative sanctions, as provided under the agreement and relevant laws governing customs revenue collection.

The NCS reiterated that prompt, accurate, and complete remittance of customs revenue is a core responsibility of designated banks. It warned that payments made into unauthorised accounts, whether intentionally or in error, would be treated as serious violations and handled in accordance with the SLA and applicable legal frameworks.

Designated banks were therefore urged to strengthen internal controls, strictly observe remittance timelines, and fully comply with the terms of the SLA.

The service reaffirmed its commitment to enforcing accountability, protecting government revenue, and promoting a transparent and predictable financial system in support of national economic development.

Under the Nigeria Customs Service Act, all customs duties, excise taxes, and related charges are payable to the service. Any intermediary, including banks, that collects such revenues and fails to remit them appropriately may face prosecution and penalties, including fines or imprisonment, as provided by law.