The Nigeria Customs Service (NCS) has raised concerns over delays in the remittance of Customs revenue by some designated banks following reconciliation of collections processed through its B’odogwu platform, warning that enforcement actions are now being taken against defaulting financial institutions.
In a notice to stakeholders, the Service says it has “noted instances of delayed remittance of Customs revenue by some Designated Banks following reconciliation of collections processed through the B’odogwu platform,” stressing that such delays “constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.”
The NCS explained that the decision to enforce sanctions is consistent with the provisions of the Service Level Agreement (SLA) executed with Designated Banks. According to the Service, stakeholders are hereby notified of “the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”
Under the enforcement framework, the Service says any Designated Bank that fails to remit collected Customs revenue within the prescribed period “shall be liable to penalty interest calculated at three percent (3%) above the prevailing Nigerian Interbank Offered Rate (NIBOR) for the duration of the delay.” It adds that affected institutions “will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement.”
Beyond financial penalties, the NCS is warning that repeated violations will attract stiffer consequences. The Service notes that “persistent or repeated non-compliance with the terms of the SLA may attract additional sanctions, including regulatory and administrative measures, as provided under the Agreement and relevant laws guiding Customs revenue collection.”
The development is placing renewed attention on the B’odogwu platform, the digital system deployed by the NCS to modernise Customs revenue collection, enhance transparency, and reduce human intervention in payment processes. The platform is designed to enable real-time processing and reconciliation of Customs payments, ensuring that revenue collected on behalf of the Federal Government is promptly and accurately accounted for.
The development is placing renewed attention on the B’odogwu platform, the digital system deployed by the NCS to modernise Customs revenue collection, enhance transparency, and reduce human intervention in payment processes. The platform is designed to enable real-time processing and reconciliation of Customs payments, ensuring that revenue collected on behalf of the Federal Government is promptly and accurately accounted for.
How B’odogwu eliminates revenue leakages
By integrating Designated Banks into a unified digital framework, B’odogwu is intended to eliminate leakages, strengthen oversight, and boost confidence in the Customs revenue administration process. However, the Service is emphasising that the effectiveness of the platform depends heavily on the compliance of participating financial institutions.
The NCS reiterates that “prompt, accurate, and complete remittance of Customs revenue is a fundamental obligation of Designated Banks,” warning that delays undermine the core objectives of the digital system.
The Service is also cautioning against the improper handling of Customs funds, stating that “any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, will be treated as a serious violation and addressed in accordance with the SLA and applicable legal frameworks.”
Designated Banks, Customs says, are therefore being advised to strengthen internal controls, ensure strict adherence to remittance timelines, and comply fully with the provisions of the SLA. The NCS says it remains committed to enforcing accountability, safeguarding government revenue, and promoting a transparent and predictable financial system in support of national economic development.
The enforcement action, the Service adds, is forming part of broader efforts to ensure that technology-driven reforms such as the B’odogwu platform deliver their intended impact, while reinforcing discipline and accountability across the Customs revenue value chain.
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