The Senate Public Accounts Committee has cleared the Nigeria Customs Service of allegations that it failed to remit N62.2 billion to the Federation Account, while ordering a comprehensive reconciliation of 76 other audit queries raised by the Auditor-General of the Federation.
The decision followed an investigative hearing into financial issues highlighted in the 2019 and 2020 audit reports, during which Comptroller-General of Customs, Dr. Bashir Adewale Adeniyi, appeared before the committee to defend the agency’s financial records.
At the heart of the dispute was an audit query alleging that Customs collected N691.24 billion in 2017 but remitted only N629.23 billion to the Federation Account, leaving an outstanding balance of N62.2 billion. Customs, however, rejected the claim, arguing that the amount in question had been incorrectly classified.
The agency explained that the funds represented statutory levies collected on behalf of other government institutions and were therefore not payable into the Federation Account. Dr. Adeniyi told lawmakers that while some levies are remittable to the Federation Account, others, including charges on local production in sectors such as wheat, textiles and wines, are governed by different remittance arrangements.
He maintained that the discrepancy stemmed from differences in revenue classification and reporting rather than any actual underremittance of funds. Members of the committee observed that the issue should ordinarily have been resolved through technical reconciliation before reaching the National Assembly.
Senator Babangida Hussaini, representing Jigawa North-West, questioned why the matter had escalated to a Senate investigation. In response, the Customs chief attributed the situation to administrative challenges and strained relations between the Senate and the agency during the period under review, which he said hampered earlier reconciliation efforts.
After reviewing the submissions, the committee accepted Customs’ explanation and dismissed the N62.2 billion underremittance allegation. It nevertheless stressed the need for closer collaboration between audit authorities and revenue-generating agencies to prevent similar disputes in the future.
The committee subsequently resolved to establish a sub-committee comprising representatives of the Auditor-General’s office and the Nigeria Customs Service to reconcile the remaining 76 audit queries.