House Orders Customs to Stop 1% Levy

The House of Representatives has directed the Nigeria Customs Service (NCS) to immediately halt collection of the one-percent Comprehensive Import Supervision Scheme (CISS) levy and the related seven-percent cost of collection by June 30, 2025. The directive was issued during a budget defence session  by the House Committee on Customs and Excise amid concerns about the legality of the levy  .

Hon. Leke Abejide (ADC, Kogi), committee chairman, noted that the CISS and collection fee lack legal backing in the Laws of the Federation. “This Committee is not unaware that CISS is not backed by any law in Nigeria… and even your seven-percent cost of collection is equally illegal,” he warned  . The panel cited a 2023 amendment to the Nigeria Customs Service Act, requiring the agency to collect only a four-percent Free-On-Board (FOB) charge.

During a detailed presentation, Abejide revealed that, while the Customs Service exceeded its 2024 revenue target—raising ₦6.11 trillion, a full ₦1 trillion above projections—the agency’s spending on personnel, overhead, and capital remained under 50%, implying misallocation  . He highlighted that the CISS, originally intended to fund operations, yielded zero income in 2024.

Abeji also questioned payments to private vendors like Web Fontaine, SGS, and COTECNA. “Why are you not getting your share of 60% of the 1% CISS?” he demanded  .

Deputy Comptroller-General Bello Mohammed Jibo, representing NCS leadership, acknowledged the levy’s contested status and the agency’s efforts to sensitise stakeholders. “In this case… we did not receive anything on the one-percent CISS this year,” he said  .

Abeji dismissed these explanations, insisting the illegal charges must stop by June-end. “You must cease collecting the CISS by the end of June 2025… Any attempt to continue after June will face legal consequences,” he cautioned  .

Analysts note that unrecognized levies can inflate import costs, destabilize price structures, and discourage trade. By enforcing the legally mandated four-percent FOB levy, the government ensures compliance with fiscal policy while boosting trade transparency.

In tandem with the CISS cessation, the House approved a ₦1.132 trillion 2025 budget for the Customs Service  . Lawmakers also hinted at a Senate proposal to further raise revenue targets to ₦10 trillion  , emphasizing modernization and anti-smuggling efforts.

A joint House-Senate session—including the Minister of Finance, Wale Edun—is scheduled to finalize the directive. Experts believe this could lead to clearer regulatory frameworks, reduced trade costs, and renewed investor confidence.

However, stakeholders are watching closely. Success hinges on NCS transparency, accountability in vendor payments, and modernization efforts in automation and enforcement capabilities.

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