The Nigeria Customs Service has started enforcing penalties against specific banks that fail to remit Customs revenue on time.

This initiative is designed to increase transparency and protect the financial earnings of the government.

The Service noted that after reconciling collections made through its B’odogwu electronic platform, it identified several cases where banks held onto funds longer than permitted. Such delays are considered a violation of the established duties of these financial institutions.

In a statement released on Wednesday by Abdullahi Maiwada, who serves as the Deputy Comptroller of Customs and National Public Relations Officer, the Service emphasized that these delays harm the integrity and efficiency of the revenue administration process.

The enforcement measures are based on the Service Level Agreement currently in place between the Nigeria Customs Service and the banks authorized to collect revenue for the Federal Government.

The statement read, “The Nigeria Customs Service has noted instances of delayed remittance of Customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform.

“Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.

“In line with the provisions of the Service Level Agreement executed between the Nigeria Customs Service and designated banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”

The Nigeria Customs Service revealed that any bank failing to transfer revenue within the set timeframe will be charged penalty interest. This interest is set at three percent above the current Nigerian Interbank Offered Rate for the duration of the delay.

The agency further explained that any bank involved will get a formal notice detailing the amount delayed, the specific penalty applied, and the timeframe for payment.

“Accordingly, any designated bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay.

“Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement,” the statement read.

The Service issued a warning that if a bank repeatedly violates the Service Level Agreement, it could face much harsher administrative and regulatory sanctions as allowed by law.

Furthermore, the Nigeria Customs Service cautioned that depositing collected revenue into unauthorized accounts, even if done by mistake, will be viewed as a major violation and handled according to legal frameworks.

Banks have been advised by the Service to improve their internal controls to ensure they meet remittance deadlines and follow the terms of their agreements strictly.

The agency stated its dedication to ensuring accountability and maintaining a predictable financial system that supports the development of the national economy.

“The NCS reiterates that prompt, accurate, and complete remittance of Customs revenue is a fundamental obligation of Designated Banks.

“Any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, will be treated as a serious violation and addressed in accordance with the SLA and applicable legal frameworks.

“Designated banks are therefore advised to strengthen internal controls, ensure strict adherence to remittance timelines, and comply fully with the provisions of the SLA. The Service remains committed to enforcing accountability, safeguarding government revenue, and promoting a transparent and predictable financial system in support of national economic development,” the statement concluded.

Customs revenue is a vital part of the non-oil income used by the Federal Government to fund development and budget priorities. Recently, the Service has increased its use of digital platforms like B’odogwu to stop financial leakages.

This new enforcement action is part of a larger movement by government agencies to improve fiscal discipline and ensure that more revenue is successfully mobilized.

For the year 2025, the Nigeria Customs Service has set a total revenue target of 10 trillion Naira. During the first half of the year, the agency successfully collected 3.6 trillion Naira toward that goal.