The House of Representatives has ordered the Nigeria Customs Service (NCS) to end the collection of the controversial Comprehensive Import Supervision Scheme (CISS) levy by June 30, 2025, calling it illegal and unconstitutional.
The directive was issued on Monday during a budget review session in Abuja by Rep. Leke Abejide, Chairman of the House Committee on Customs and Excise. He declared that CISS is not backed by any existing Nigerian law, and warned the Customs Service not to collect the levy beyond the set deadline.
What’s the Issue?
The CISS levy (1% on imports) has been collected by Customs for years but is not included in any Act passed by Nigeria’s parliament. It is widely believed to be a carryover from military-era policies, which lawmakers argue have no place in a democratic era.
“We are representatives of the people. This is a democratic dispensation. Any attempt to collect CISS after June 30 will face legal action,” Abejide warned.
The only legal levy recognised under current law, according to Abejide, is the 4% Free-On-Board (FOB) cost provided under Section 18(1a) of the Nigeria Customs Service Act, 2023.
Budget Concerns and Revenue Use
Despite surpassing its 2024 revenue target by over ₦1 trillion (generating ₦6.11 trillion against a target of ₦5.08 trillion), Customs reportedly failed to adequately fund:
- Personnel costs (43.53%)
- Overhead costs (46.34%)
- Capital projects (45.68%)
Lawmakers demanded accountability and better utilisation of public funds.
Why It Matters
- The CISS levy has no legal backing, raising concerns about unauthorised revenue collection.
- Lawmakers vow to sue the Customs Service if it continues the practice after June.
- Better budgeting and transparency are essential for public trust and effective governance.
- The issue could set a precedent for reviewing other outdated or unauthorized government revenue streams.
What’s Next?
A joint session with the Senate Committee on Customs and Excise, and the Minister of Finance, is scheduled for Wednesday to resolve the matter and ensure compliance.
Customs Comptroller-General Adewale Adeniyi admitted that reforms had been delayed but assured lawmakers that stakeholder sensitisation was ongoing.
“We did not receive anything on the 1% CISS this year,” he said.
Lawmakers, however, remain firm — June 30 is the final deadline. After that, only the 4% FOB levy will be legally allowed.
