Nigeria Customs Service CG, Adewale Adeniyi
The Centre for Social Justice (CSJ) has criticised the N34 trillion customs duty waivers granted in 2025, alleging that the approvals did not comply with the provisions of the Fiscal Responsibility Act (FRA).
In a statement issued by its Lead Director, Mr Eze Onyekpere, the civil society organisation said the country’s tax expenditure regime had been poorly managed and abused over the years.
The group’s reaction followed recent disclosures by the Nigeria Customs Service (NCS) before the House of Representatives Committee on Finance that customs duty waivers valued at N34 trillion were implemented during the 2025 financial year.
According to the NCS, it does not approve waivers but merely implements them based on directives from the Minister of Finance in line with extant laws.
CSJ noted that the House committee had requested details of the beneficiaries of the waivers, their legal basis and the objectives for which they were granted.
The organisation explained that customs duty waivers form part of broader tax expenditures, which also include tax holidays and exemptions granted to companies, often to attract investments into strategic sectors.
It argued that total tax expenditures for the year would likely exceed the N34 trillion customs waiver figure.
CSJ further observed that the Federal Government generated N28.23 trillion in consolidated revenue in 2025 against a target of N36.35 trillion, raising concerns over the rationale for granting waivers exceeding actual revenue retained by the government.
The organisation questioned the wisdom of forfeiting huge revenues at a time when Nigeria continues to grapple with widening fiscal deficits and rising public debt.
Citing Section 29(1) of the Fiscal Responsibility Act, CSJ stated that any proposed tax expenditure must be accompanied by an assessment of its budgetary and financial implications for the year of implementation and the following three years. It added that such expenditures should only be approved if they do not adversely affect government revenue projections or are backed by countervailing measures such as tax increases or expansion of the tax base.
The group queried whether the required evaluations and approvals were undertaken in respect of the N34 trillion waivers.
“Where is the evaluation of its budgetary and financial implications? Was it sent to the National Assembly for approval? Where are the countervailing measures prepared by the Minister and approved by the National Assembly?” it asked.
CSJ also pointed to the Nigerian Tax Policy 2017, which requires annual reporting on revenues forgone through tax incentives and an assessment of the benefits derived from such concessions.
According to the organisation, there has been little evidence of such reports over the years, reinforcing concerns that the tax expenditure framework has been abused.
The group consequently called on the National Assembly to amend relevant laws to ensure that tax expenditures do not exceed 10 per cent of actual revenues generated in the preceding financial year.
It also urged lawmakers to ensure that proposed tax expenditures are presented alongside the Appropriation Bill for legislative approval and to strengthen oversight to guarantee compliance with the provisions of the Fiscal Responsibility Act.
