The Senate Committee on Public Accounts has exonerated the Nigeria Customs Service of allegations that it failed to remit N62.2 billion into the Federation Account, as contained in the 2019 Audit Report of the Office of the Auditor-General of the Federation.
The decision was reached on Tuesday during an investigative hearing involving the Comptroller-General of Customs, Bashir Adeniyi, and lawmakers probing 77 audit queries raised against the agency across the 2019 and 2020 audit reports.
Despite clearing the agency on the disputed N62.2 billion, the committee resolved to establish an ad hoc reconciliation panel to examine the remaining 76 audit queries and submit its findings for further legislative consideration.
Officials from the Office of the Auditor-General told the committee that Customs generated over N691 billion in revenue in 2017, but remitted about N629 billion to the Federation Account, leaving an apparent shortfall of N62.2 billion.
However, the Comptroller-General of Customs, Bashir Adeniyi, rejected the allegation, insisting that the disputed funds were not part of revenue meant for remittance to the Federation Account.
According to him, the sum in question represented levies collected on behalf of other government agencies and was wrongly classified in the audit report as unremitted revenue.
“The figure was wrongly classified as under-remittance in the audit report,” he explained, maintaining that Customs does not retain such funds.
Adeniyi further clarified that while certain levies collected by the service are paid into the Federation Account, others are directed into separate statutory accounts.
He listed examples such as levies tied to local production in sectors including wheat, textiles, and wines, which are not remitted to the Federation Account.
He maintained that the disputed N62.2 billion fell within these categories and therefore should not have been recorded as funds owed to the Federation.
The Customs chief also responded to other audit queries, particularly the second and third issues raised by lawmakers, which the committee described as satisfactorily addressed.
Some senators, however, questioned why the matter escalated to a formal Senate investigation, arguing that it should have been resolved through routine reconciliation between Customs and audit authorities.
Responding to the concerns, Adeniyi noted that the audit years under review coincided with a period of strained relations between the National Assembly and the Customs Service, which affected routine engagement processes.
The committee stated that the newly established reconciliation panel would work closely with Customs officials and auditors to resolve outstanding discrepancies in the remaining 76 audit queries before any further action is taken.
