Economists and financial experts have called for a thorough investigation after the Nigeria Customs Service disclosed that import duty waivers granted in 2025 amounted to about N34 trillion.
The figure, announced by Comptroller-General of Customs Bashir Adeniyi during an investigative hearing before the Senate Committee on Finance, has sparked concerns about its impact on government revenue and fiscal sustainability.
According to Adeniyi, the approved Import Duty Exemption Certificates (IDECs) represented a significant reduction in potential customs revenue.
Customs explains purpose of duty exemptions
Adeniyi said many of the waivers were approved to support key government priorities.
He explained that approximately 60 percent of the exemptions covered military equipment imported to strengthen national security.
Other beneficiaries included imports related to compressed natural gas (CNG) projects, electric and hybrid vehicles, medical equipment, industrial machinery, manufacturing inputs and food intervention programmes.
While acknowledging the economic importance of such incentives, he noted that they also reduced the revenue generated by the Nigeria Customs Service.
Waivers exceed customs revenue
The Customs Service generated N7.28 trillion in revenue during the 2025 fiscal year.
However, the N34 trillion approved in import duty waivers was more than four times the agency’s total revenue collection for the same period.
The amount also represents about 61.8 percent of Nigeria’s N54.99 trillion national budget for 2025, highlighting the scale of the fiscal concessions.
Experts call for transparency
Professor Godwin Oyedokun, a Professor of Accounting and Finance at Lead City University, said import duty waivers can support industrial growth when properly implemented.
However, he stressed that government must demonstrate that the incentives resulted in measurable benefits such as increased production, employment, exports and economic expansion.
According to him, if those objectives were not achieved, the country may have forfeited substantial revenue without corresponding economic gains.
Oyedokun also warned that excessive or poorly monitored waivers could increase budget deficits, raise government borrowing and reduce funding available for education, healthcare, infrastructure and security.
He urged authorities to strengthen oversight through regular audits, cost-benefit assessments and improved transparency.
Concerns over possible revenue leakages
Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, also described the reported figure as alarming.
He said import waivers remain legitimate economic tools but warned they should never become channels for revenue leakages or abuse.
According to Idakolo, the reported N34 trillion could have significantly supported budget implementation and reduced the government’s dependence on borrowing.
He called on the Federal Government to review its waiver policy, investigate any irregularities and sanction agencies or officials found responsible for abuses within the system.
Debate likely to continue
The disclosure has intensified discussions over Nigeria’s fiscal policies, with analysts urging greater accountability in the administration of import duty incentives.
Many believe that while targeted tax concessions can stimulate economic growth, stronger monitoring is necessary to ensure they deliver measurable national benefits without undermining public finances.