Reported by Weng Patrick Atokor | Journalist at Weng Global
The Nigeria Customs Service (NCS) has called on the National Assembly to review the country’s import waiver regime and key provisions of the Nigeria Customs Service Act 2023, arguing that evolving global trade patterns and the nation’s fiscal realities require a more responsive legal framework.
The Service said while import waivers were originally introduced to stimulate investment, encourage industrial development and support strategic sectors of the economy, their continued implementation without periodic evaluation has significantly reduced government revenue and created concerns about fairness and efficiency within Nigeria’s import system.
The position was presented by senior officials of the Service during an engagement with lawmakers, where Customs emphasized the need for legislative reforms that would strengthen revenue generation, improve transparency and align Nigeria’s customs operations with current international trade practices.
Revenue losses from excessive waivers
According to the Customs Service, import duty waivers have over the years become a major source of revenue leakage.
The agency explained that although genuine waivers remain necessary in exceptional circumstances, indiscriminate exemptions reduce customs collections and place additional pressure on government finances, especially at a time when Nigeria is seeking to expand non-oil revenue.
Officials noted that many beneficiaries continue to enjoy concessions long after the original economic justification has faded, making it necessary for lawmakers to reassess existing policies.
The Service maintained that every waiver granted represents potential revenue that could have been invested in infrastructure, healthcare, education and other public services.
Customs therefore urged the National Assembly to establish stronger oversight mechanisms that would ensure exemptions are granted only where there is measurable economic benefit.
Customs Act 2023 requires updates
Beyond import waivers, the Service also advocated amendments to portions of the Nigeria Customs Service Act 2023.
According to Customs, the legislation represented a major milestone in modernising Nigeria’s customs administration, but practical implementation has exposed areas requiring further refinement.
The agency said international trade has continued to evolve rapidly through digital commerce, emerging technologies, regional trade agreements and changing global supply chains.
To remain effective, Customs argued, Nigeria’s legal framework must also evolve.
Officials said reviewing the Act would help eliminate operational bottlenecks, improve compliance, strengthen enforcement powers and support more efficient cargo clearance procedures.
Supporting economic growth
The Nigeria Customs Service stressed that its recommendations are not intended to discourage legitimate businesses or investors.
Rather, the agency said the proposed reforms are designed to create a more transparent and predictable trade environment that benefits both government and the private sector.
Customs explained that a well-regulated waiver system would ensure incentives are directed only to sectors that genuinely require government support while preventing abuse by companies seeking unnecessary exemptions.
The Service added that improved customs administration would enhance investor confidence by ensuring consistent implementation of trade policies.
Aligning with international standards
The agency also highlighted the importance of aligning Nigeria’s customs laws with global best practices.
It noted that many countries regularly update customs legislation to reflect changes in international trade rules, border security requirements and technological innovation.
Customs said Nigeria must equally strengthen its legal framework to improve competitiveness under the African Continental Free Trade Area (AfCFTA) and other international trade agreements.
According to the Service, modern customs administration now depends heavily on automation, intelligence gathering, risk management and inter-agency collaboration, all of which require flexible legal backing.
National Assembly urged to act
The Customs Service appealed to lawmakers to commence a comprehensive review of both the import waiver regime and relevant sections of the Nigeria Customs Service Act 2023.
The agency said such a review would improve accountability, reduce revenue losses and ensure government incentives achieve their intended economic objectives.
It further expressed readiness to work closely with the National Assembly, the Federal Ministry of Finance, the private sector and other stakeholders throughout the review process.
According to Customs, broad consultations would ensure that any amendments balance revenue generation with economic competitiveness and industrial growth.
Experts back periodic policy reviews
Economic analysts have consistently argued that tax incentives and import waivers should be subjected to regular assessments to determine whether they continue to deliver value for the economy.
They note that while carefully targeted incentives can stimulate investment, prolonged exemptions without proper monitoring often distort competition and reduce government income.
Analysts also believe that updating customs legislation periodically is necessary to keep pace with technological advancement, changing trade patterns and evolving security challenges at international borders.
Looking ahead
As Nigeria intensifies efforts to increase internally generated revenue and reduce dependence on oil earnings, reforms within the customs sector are expected to play a significant role.
A review of import waivers could help plug revenue leakages while ensuring incentives remain focused on priority sectors capable of creating jobs and boosting local production.
Similarly, amendments to the Nigeria Customs Service Act 2023 could strengthen institutional capacity, enhance trade facilitation and improve the efficiency of border management.
Whether lawmakers adopt the proposed reforms in full or introduce alternative measures, the discussions underscore the growing importance of customs administration in supporting Nigeria’s economic stability and long-term development.
Sources:
- Nigeria Customs Service (NCS)
- National Assembly of Nigeria
- Federal Ministry of Finance
