House Of Representatives To Probe Billions Lost From Container Diversion, Customs Duty Leakages

The House of Representatives is planning investigation into container diversions, excise duty losses, and import quota abuses at Nigeria’s ports.

The House of Representatives on Wednesday announced plans to investigate the loss of billions of naira in government revenue and the diversion of containers meant for bonded terminals and warehouses at the nation’s ports.

This decision followed the adoption of a motion sponsored by Hon. Hassan Hussain, who expressed deep concern over the improper assessment of excise duties, overdue temporary importation, and unremitted customs duties and levies collected by officials of the Nigeria Customs Service.

During his lead debate, Hon. Hussain explained that bonded terminals and fast-track warehouses were established to decongest the ports, facilitate trade, improve efficiency, and boost federal revenue.

He condemned the ongoing illegal activities of some bonded terminals and warehouses across the country, describing their operations as harmful to the economy and a growing threat to national security.

He noted the House is worried about containers meant to be transferred from main ports under the supervision of the Nigeria Customs Service and covered by bonds being diverted before reaching their destinations.

He warned the contents of such containers remain unknown and may include dangerous items such as tramadol or arms and ammunition, posing serious security risks.

Hussain further observed that although the federal government grants new factories and industries a three-year tax or excise duty holiday to encourage growth, some companies exploit this privilege by continually evading duty payments.

He added that in many cases, excise duty collection is still done manually, leading to errors in assessment and under-collection.

The House also identified another major source of revenue loss through the Temporary Importation Scheme, which allows investors to bring in vessels, aircraft, and heavy equipment duty-free for a limited period if they secure a cash-backed bond.

However, many organizations have exceeded their approved bond durations without remitting the required duties to the federal government.

Hussain also raised concerns about the excessive importation of sugar and other essential commodities beyond approved quotas.

He explained the repeated recycling and unauthorized expansion of these quotas have caused the nation to lose billions of naira that should have been paid into the Federation Account.

As a result, the House called on the Comptroller-General of Customs, Dr. Adewale Adeniyi, to investigate officers involved in container transfers and escorts under bond, using technology to ensure that every container and its associated duty are fully tracked and accounted for up to their final destination.

The House further directed its Committee on Customs and Excise to investigate cases of container diversion, excise duty leakages, irregularities in temporary importation, and misuse of import quotas for essential goods, and to submit a report within four weeks for further legislative action.