The Nigeria Customs Service (NCS) has disclosed that import duty exemption certificates (IDECs) granted by the Federal Government rose to about N34 trillion in 2025, affecting the agency’s revenue generation capacity.
Comptroller-General of Customs, Bashir Adeniyi, revealed this on Monday during an investigative session held by the Senate Committee on Finance with revenue-generating agencies.
Adeniyi said government policies and interventions have continued to influence the revenue performance of the customs service, noting that the agency would have generated more income without the impact of import duty waivers.
According to him, IDECs, which were introduced in March 2020, remain one of the major factors affecting customs revenue.
“IDEC approvals reached about N34 trillion in 2025, 60 percent of which was rightly granted by government for military hardware procurements because of Nigeria’s prevailing security challenges,” he said.
The customs boss explained that other duty exemptions covered the importation of compressed natural gas (CNG), electric and hybrid vehicles, medical equipment and healthcare supplies, industrial machinery, manufacturing materials, and food import intervention programmes.
During the session, Senator Adams Oshiomhole, representing Edo North, questioned the Federal Government’s decision to reduce import duties on some categories of vehicles.
Oshiomhole warned that the policy could negatively affect Nigeria’s automobile assembly sector by increasing dependence on imported vehicles.
Responding, Adeniyi explained that the customs service only implements government policies and does not determine fiscal decisions.
He acknowledged that reducing import duties could affect customs revenue but said the policy was introduced to make vehicles more affordable for Nigerians.
Adeniyi also provided updates on the implementation of the National Single Window (NSW) initiative, stating that the digital integration of government agencies was progressing and would enhance trade efficiency, transparency and Nigeria’s competitiveness.
The customs chief noted that fiscal policies should not be judged solely by their revenue impact but also by their wider economic and social benefits.
However, he called for stronger monitoring systems to ensure beneficiaries of duty waivers achieve the intended objectives, including reduced prices, increased production and improved access to healthcare.
Adeniyi further informed the committee that the customs service generated N4.5 trillion as of June 30, 2026, against its annual revenue target of N11.04 trillion.
He added that the agency would need to generate about N7 trillion in the second half of the year to meet its target.