House Orders Customs To Cease 7% CISS Levy Collection By June 30, As Joint NASS Committee Set To Meet Edun Wednesday
•By Admin
ABUJA – The House of Representatives has instructed the Nigeria Customs Service (NCS) to stop collecting the 7% Comprehensive Import Supervision Scheme (CISS) levy from June 30, 2025.
The directive was handed down on Monday by the Chairman of the House Committee on Customs and Excise, Hon. Leke Abejide (ADC, Kogi), during a session reviewing the agency’s ₦6.11 trillion 2024 budget performance and deliberating on its proposed ₦6.58 trillion budget for 2025.
Abejide also announced that a joint meeting will be held on Wednesday between the House and Senate Committees on Customs and Excise, alongside the Minister of Finance and Economy, Mr. Wale Edun, to further address concerns surrounding the levy and other related matters.
The lawmaker raised alarm over the NCS’s inability to adequately fund salaries, overheads, and capital expenditures, despite exceeding its annual revenue target.
“This Committee is fully aware that the CISS levy has no legal foundation under Nigerian law. It is not contained in the Laws of the Federation, and even the 7% collection fee lacks legitimacy,” Abejide stressed.
He cited a disturbing discovery that from January to December 2024, the NCS failed to receive any funds from its 60% share of the 1% CISS levy—revenue that was supposed to support operational funding. He also questioned why Web Fontaine Limited continued to receive payments, even though the Customs Service had taken over the majority of its automation functions.
“Why have you not received the 60% you’re entitled to? The only valid revenue source, according to Section 18(1a) of the Nigeria Customs Service Act, 2023, as officially gazetted on June 9, 2023, is the 4% Free-On-Board (FOB) collection,” he said.
The issue of legality was also raised by Hon. Awaji-Inombek Abiante (PDP, Rivers), who challenged the basis for the levy, describing it as a remnant of military rule.
“Why do you still implement a 1% levy that has never been ratified by the National Assembly? It is not a carryover of any recognized decree and clearly doesn’t belong in a democratic framework,” Abiante queried.
In response, Comptroller General of Customs, Adewale Adeniyi, admitted that the issue had been anticipated in 2024 but was deferred. He said efforts to educate stakeholders are ongoing. “We’ve started stakeholder sensitisation. And to clarify, we received no revenue from the 1% levy this year,” he explained.
But Abejide was unyielding. “You must discontinue the CISS collection by June 30, 2025. The only permissible levy is the 4% FOB as signed into law by the President. This is not negotiable, failure to comply will result in legal action.
“This is the legislature of the people. If the CISS levy is collected on July 1, the full force of the law will be brought to bear. Follow what is stipulated in Section 18(1a) of the Customs Act.”
On budget execution, Abejide voiced concern over the agency’s fiscal performance despite recording higher-than-expected revenue.
“Your implementation rate is alarming, personnel expenses were only 43.53% executed, overheads 46.34%, and capital projects 45.68%, even though your total revenue hit ₦6.11 trillion—₦1.03 trillion above the target of ₦5.08 trillion for 2024, reflecting a 20.21% increase,” he said.
He called for an explanation on how such a revenue surplus did not translate into adequate operational funding.
In response, CG Adeniyi outlined measures to boost revenue generation and block leakages. He emphasized the importance of quicker cargo clearance and maintaining a favorable exchange rate to support trade.
“We’re also proposing a return of excise duties on telecom services and single-use plastics. A review of the government’s tax exemption policy is necessary to ensure it doesn’t heavily impact revenue,” he stated.
He added that the Service would intensify anti-smuggling operations and invest in manpower development to improve operational capacity and revenue generation.
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