The Centre for Social Justice, CSJ, has expressed concern over the N34 trillion worth of customs duty waivers implemented by the Nigeria Customs Service in the 2025 financial year. The group said the amount is higher than the N28.23 trillion consolidated revenue that accrued to the Federal Government in the same year.

According to CSJ, the Nigeria Customs Service told the House of Representatives Committee on Finance that it does not approve waivers but only implements them on the authority of the Minister of Finance. The Committee has now requested a comprehensive breakdown of beneficiaries, the legal basis, and the purpose of the waivers.
 
CSJ noted that the Federal Government’s actual revenue for 2025 stood at N28.23 trillion out of a target of N36.35 trillion. The group asked if it is reasonable for government to waive and forfeit more revenue than it retains, especially at a time of high budget deficits and rising borrowing. It described the situation as a threat to sound fiscal governance.

The Centre cited Section 29(1) of the Fiscal Responsibility Act, which requires an evaluation of the budgetary and financial implications of any tax expenditure and approval by the Minister only if it does not impair revenue estimates. CSJ said the N34 trillion waiver did not follow this procedure and questioned where the evaluation and countervailing measures are.

CSJ also referenced the Nigerian Tax Policy 2017, which requires annual reporting of revenue forgone against actual benefits. The group said there has been no such report over the years and concluded that the tax expenditure regime has been mismanaged and abused. It argued that no law should give public officers discretion to waive huge revenues while deficits keep rising.

To address the problem, CSJ recommended that the National Assembly amend relevant laws to cap all tax expenditures at 10 percent of actual revenue for the preceding year. It also called for proposed tax expenditures to be included as a schedule in the Appropriation Bill for approval, and urged lawmakers to enforce existing provisions of the Fiscal Responsibility Act. The statement was signed by CSJ Lead Director, Eze Onyekpere, on July 17, 2026.