FG Waived N34trn Customs Duties in 2025, Earned Only N28.23trn — CSJ By Emmanuel Iyoho
FG Waived N34trn Customs Duties in 2025, Earned Only N28.23trn — CSJ
By Emmanuel Iyoho
ABUJA— The Centre for Social Justice, CSJ, has raised the alarm over what it described as fiscal recklessness by the Federal Government, revealing that N34 trillion worth of customs duties were waived in 2025 while only N28.23 trillion was accrued as consolidated revenue.
The Lead Director of CSJ, Mr. Eze Onyekpere, disclosed this in a statement issued in Abuja on Wednesday. He cited a recent disclosure by the Nigeria Customs Service, NCS, before the House of Representatives Committee on Finance.
According to Onyekpere, the NCS told lawmakers it implemented the waivers on the authority of the Minister of Finance, noting that the Service does not approve waivers under existing laws. The House Committee has since requested a full breakdown of beneficiaries, the legal basis, and purpose of the waivers.
The CSJ noted that customs duty waivers form part of broader tax expenditures, which also include tax holidays and exemptions granted to companies to attract investment. It warned that total tax expenditure for 2025 would likely far exceed the N34 trillion figure.
The group further stated that the Federal Government’s actual revenue for 2025 stood at N28.23 trillion out of a budget target of N36.35 trillion.
“Is it reasonable in an economy running a very high budget deficit for government to waive and forfeit more revenue than it retains? We forfeit revenue that rightfully belongs to us and go cap in hand to creditors,” Onyekpere queried.
Citing Section 29(1) of the Fiscal Responsibility Act, FRA, the CSJ Lead Director said any proposed tax expenditure must be evaluated and approved only if it does not impair revenue or is accompanied by countervailing measures.
He argued that the N34 trillion waiver did not follow due process under the FRA. “Where is the evaluation of its budgetary and financial implication? Was it sent to the National Assembly for approval? Where is the documentation of countervailing measures?” he asked.
Onyekpere also referenced the Nigerian Tax Policy 2017, which mandates annual reporting of revenue forgone against actual benefits. “Nigeria has been granting tax waivers over the years. Where are the annual reports quantifying waivers against accrued benefits?” he queried.
CSJ concluded that the tax expenditure regime has been “mismanaged and abused,” warning that granting public officers discretion to waive huge revenues amid rising deficits and borrowing is not tenable in a democracy.
To address the issue, CSJ recommended that the National Assembly amend relevant laws to cap all tax expenditures at 10 percent of actual revenue in the preceding year. It also urged that proposed tax expenditures be presented alongside the Appropriation Bill for legislative approval, and that lawmakers enforce provisions of the FRA through oversight.
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