The House of Representatives has launched a sweeping investigation into systemic abuses at Nigeria’s bonded terminals and warehouses, targeting the diversion of containers, inaccurate excise duty calculations, expired temporary importation bonds, and non-remitted customs duties—practices estimated to cost the government billions in annual revenue.
The probe was triggered by a motion moved by Hon. Hassan Shehu Hussain (NNPP, Kano) during Wednesday’s plenary, which was unanimously adopted.
Bonded Terminals: From Trade Facilitators to Revenue Black Holes
Hussain told the House that bonded terminals and fast-track warehouses were designed to decongest seaports, streamline trade, and boost federal revenue. Instead, he alleged, rogue operators have turned them into conduits for fraud and security risks.
“Containers meant to move under Nigeria Customs Service (NCS) escort and full-value bonds are routinely diverted before reaching their destinations,” Hussain warned. “We don’t know what’s inside—tramadol, arms, ammunition—anything that threatens public safety.”
He cited cases where companies exploit three-year excise duty holidays for new manufacturers, then refuse to pay after the grace period ends. Manual duty assessments, he added, enable falsified records and systematic under-remittance to the Federation Account.
Temporary Importation Scheme Abused
The lawmaker highlighted rampant abuse of the Temporary Importation (TI) scheme, which allows duty-free entry of vessels, aircraft, and heavy machinery in exchange for bank-backed bonds.
“Many companies never redeem expired bonds or pay duties, causing massive revenue leakage,” Hussain said.
He also flagged over-importation of sugar and other quota-regulated commodities, bypassing federal limits and depriving the treasury of billions.
House Directs Immediate Action
Following robust debate, the House mandated the Comptroller-General of Customs to:
- Strengthen real-time supervision of bonded container movements;
- Deploy advanced GPS and tracking technology from port to final destination;
- Ensure 100% duty and levy remittance with zero tolerance for diversion.
The resolution further tasks a yet-to-be-constituted ad-hoc committee with a forensic audit of bonded terminal operations, excise compliance, and TI bond redemptions over the past five years.
Lawmakers warned that the scale of the infractions undermines Nigeria’s trade facilitation goals and fuels insecurity through unchecked smuggling.
The NCS has been directed to submit a comprehensive compliance report within 60 days, with findings expected to inform stricter penalties and digital enforcement reforms.
The investigation comes amid intensified legislative scrutiny of revenue leakages across federal agencies, as the government seeks to plug fiscal gaps without increasing taxes.
