The House of Representatives has directed the Nigeria Customs Service (NCS) to cease the collection of the controversial Comprehensive Import Supervision Scheme (CISS) levy by June 30, 2025, describing it as an illegal charge not backed by Nigerian law.
The order was given on Monday in Abuja by the Chairman of the House Committee on Customs and Excise, Hon. Leke Abejide (ADC, Kogi), during a joint session reviewing the performance of the Service’s N6.11 trillion 2024 budget and defending its proposed N6.58 trillion budget for 2025.
Hon. Abejide emphasized that the CISS levy lacks legal backing under Nigeria’s current democratic framework. He argued that neither the CISS nor the 7% cost of collection currently retained by the Customs Service are recognized in the Laws of the Federation of Nigeria (LFN).
Instead, he clarified that the only legally valid revenue source for the agency is the 4% Free-On-Board (FOB) levy, as provided under Section 18(1a) of the Nigeria Customs Service Act, 2023, signed into law and published in the official gazette (No. 105, Lagos – June 9, 2023, Vol. 110).
Abejide issued a stern warning:
“From July 1, 2025, the collection of the 1% CISS levy must stop. You are to rely solely on the 4% FOB as approved by the President. Any attempt to collect CISS beyond June will be met with legal action. This is a democratic government, not a military regime. We will hold you accountable.”
The committee’s directive followed revelations that the NCS received no revenue from 60% of the 1% CISS between January and December 2024—a fund earmarked to cover personnel expenses, overheads, and capital projects.
Furthermore, despite surpassing its 2024 revenue target by over N1 trillion, the NCS was still unable to adequately fund these key areas. Specifically, the Customs only achieved 43.53% of its personnel cost performance, 46.34% in overhead, and 45.68% in capital projects.
Addressing this, Abejide expressed concern:
“You exceeded your 2024 target of N5.08 trillion, generating N6.11 trillion—an impressive increase of N1.03 trillion or 20.21%. Yet you still could not fully fund your obligations. Why is this the case?”
Questions around the legality of the CISS collection intensified after Hon. Awaji-Inombek Abiante (Rivers) raised concerns about its origin. He pointed out that the levy was introduced during military rule and not backed by any Act of Parliament.
“We are in a democracy,” he stated. “The 1% CISS levy is not part of our laws. Why are you still enforcing it?”
In response, the Comptroller General of the Nigeria Customs Service, Adewale Adeniyi, admitted that the issue had been identified previously but action was postponed.
“We expected discussions around this to begin last year, but it was shelved. However, we’re now working on sensitising stakeholders,” he said.
When asked if stakeholder sensitisation had been done, Adeniyi replied, “We’re working on it. However, we’ve not received any revenue from the 1% CISS so far this year.”
The Committee was also concerned about payments made to Web Fontaine Ltd., the service provider responsible for network and automation solutions at NCS. According to the lawmakers, about 80% of Web Fontaine’s tasks have now been absorbed by Customs staff, yet questions remain over continued payments and revenue shares tied to CISS.
Meanwhile, the Committee announced plans to hold a joint session with the Senate Committee on Customs and Excise and the Minister of Finance and Economy, Mr. Wale Edun, to deliberate further on these issues.
Looking ahead, the Customs Comptroller General presented initiatives aimed at improving revenue generation and closing leakages.
“With accelerated clearance processes and timely goods release, we expect the floating exchange rate to favour trade,” Adeniyi said. He also proposed reinstating excise duties on telecommunications and single-use plastics, alongside a review of the government’s tax expenditure policy to optimize tax application without hurting revenue flow.
He added that anti-smuggling operations would be intensified to curtail illicit trade and economic sabotage.
“Capacity building through recruitment and training will also be prioritised,” he stated. “This will help improve operational efficiency, intelligence gathering, and ultimately boost revenue.”