Nigeria Customs Imposes 3% Penalty on Banks for Delayed Revenue Remittance

The Nigeria Customs Service (NCS) has announced a three per cent penalty on Designated Banks that fail to remit collected revenue on time, following lapses identified on its B’odogwu platform.

The Service noted that reconciliation of transactions revealed delays by some banks in transferring funds due to the Federal Government, a practice that undermines remittance obligations and threatens the transparency and effectiveness of revenue administration.

To address this, the NCS has initiated enforcement measures in line with the Service Level Agreement (SLA) with Designated Banks. Any bank failing to remit Customs revenue within the agreed timeframe will incur penalty interest of three per cent above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the period of default. Banks will be formally notified of the outstanding amount, applicable penalty, and settlement deadline.

Mr. Aliyu Maiwada, NCS National Public Relations Officer, warned that repeated SLA breaches could attract stricter sanctions, including regulatory and administrative actions under relevant laws. He emphasized that prompt, accurate, and complete remittance of Customs revenue is a core obligation of Designated Banks. Any payment into unauthorized accounts, whether deliberate or accidental, will be treated as a serious violation.

The NCS urged banks to strengthen internal controls, comply with remittance timelines, and fully adhere to the SLA. The agency reaffirmed its commitment to accountability, safeguarding government revenue, and promoting a transparent and predictable financial system to support Nigeria’s economic growth.

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