Reps order Customs to halt collection of ‘illegal’ CISS levy, 7% fees by June 30

By Seun Ibiyemi

The House of Representatives Committee on Customs and Excise has directed the Nigeria Customs Service (NCS) to immediately cease the collection of the 1 per cent Comprehensive Import Supervision Scheme (CISS) levy and the 7 per cent cost of collection charge, declaring both as unlawful and unsupported by existing legislation.

Chairman of the Committee, Hon. Leke Abejide (ADC, Kogi), issued the order on Monday during a budget defence session for the NCS’s 2025 fiscal proposal.

Abejide stated that the only legally sanctioned funding provision for the Customs Service is the 4 per cent Free-On-Board (FOB) allocation, clearly outlined in Section 18(1a) of the Nigeria Customs Service Act, 2023.

“CISS and the 7 per cent cost of collection do not appear anywhere in the Laws of the Federation of Nigeria. They are not lawful. The sole recognised funding source is the 4 per cent FOB,” Abejide asserted.

Despite acknowledging the NCS’s impressive revenue performance in 2024, generating N6.105 trillion against a target of N5.079 trillion, Abejide expressed disappointment over the inadequate budgetary allocation from the federal government. He noted that the Customs Service struggled to meet its capital expenditure goals, with capital project implementation reaching just 45.68 per cent.

The Committee ruled that the CISS and 7 per cent deductions may continue only until 30 June 2025. Beyond that date, any further collection would be considered illegal and subject to sanctions.

Deputy Comptroller General of Customs, Bello Mohammed Jibo, who represented the Comptroller General, explained that the 4 per cent FOB implementation was temporarily suspended to allow for stakeholder engagement.

However, Abejide rejected the explanation and insisted on immediate compliance with the law. He warned that failure to adhere to legal provisions would prompt decisive legislative intervention.

The lawmaker also raised questions regarding the 60 per cent portion of the CISS levy earmarked for Customs operations, pointing out that there had been no record of such remittance in 2024.

“Why is Customs not receiving its statutory share? Many of the services once covered under the CISS are now being undertaken directly by the NCS,” Abejide queried.

In response, Jibo outlined a number of operational difficulties affecting the Service’s performance, including revenue losses due to government duty exemptions, reduced cargo volumes, and the impact of the floating exchange rate on import activity.

Nevertheless, he said the NCS had made considerable gains in revenue recovery and was advancing its modernisation efforts with a focus on automation and surveillance systems.

He also proposed a range of new revenue strategies, including the reintroduction of excise duties on telecommunications services and single-use plastics, broader deployment of cargo scanners, and policy revisions aimed at minimising revenue leakages.

As the Customs Service presses ahead with reform and digital transformation, the House Committee reaffirmed its commitment to ensuring that all fiscal activities align strictly with the rule of law.