The Senate Committee on Public Accounts has cleared the Nigeria Customs Service of allegations involving an alleged N62.2 billion under-remittance, bringing an end to one of the most closely examined audit queries from the 2019 federal financial report.
The decision followed an investigative hearing held on Tuesday, where lawmakers reviewed explanations provided by the Comptroller-General of Customs, Bashir Adewale Adeniyi, regarding the disputed figures flagged by the Office of the Auditor-General of the Federation.
Audit Query Originated From 2017 Revenue Figures
At the centre of the investigation was a 2019 audit report referencing revenue records from 2017.
The report stated that while the Customs Service generated N691.242 billion in total revenue, only N629.23 billion was remitted into the Federation Account, leaving a gap of N62.2 billion.
The Auditor-General’s representatives presented the query before the committee, prompting a detailed response from the Customs leadership during the session chaired by Senator Ibrahim Dankwambo of Gombe North.
Customs CG Explains Alleged Misclassification of Funds
Responding to the allegation, Comptroller-General Bashir Adewale Adeniyi told the committee that the disputed sum did not represent missing or unremitted revenue, but rather a misclassification of levies collected on behalf of different government agencies.
He explained that while certain levies are required to be paid into the Federation Account, others—including charges linked to local production sectors such as wheat, textiles, and wines—are retained outside the federation pool under existing financial arrangements.
According to him, this distinction accounted for the perceived discrepancy highlighted in the audit report.
Lawmakers Question Why Issue Escalated to Senate Level
Following the explanations, Senator Babangida Hussaini of Jigawa North West raised concerns over why the matter escalated to a full Senate investigation, suggesting it should have been resolved at the reconciliation stage between auditors and the agency.
He noted that many of the issues raised in the first set of queries appeared administrative in nature and could have been clarified earlier without reaching the legislative chamber.
Customs Boss Cites Historical Institutional Tensions
In his defence, Adeniyi told the committee that the period under review coincided with strained relations between the National Assembly and the Customs Service, which he suggested contributed to delays in resolving audit discrepancies at an earlier stage.
He implied that the strained institutional environment affected reconciliation processes that typically resolve such accounting issues before escalation.
Senate Moves to Close Case With New Reconciliation Panel
After reviewing the explanations and deliberating on the submissions, the committee formally vacated the N62.2 billion under-remittance query against the Customs Service.
However, lawmakers did not conclude the entire audit review process.
Instead, they resolved to set up a smaller reconciliation panel to examine the remaining 74 queries contained in the 2019 and 2020 audit reports.
The panel is expected to work directly with the Customs Service to resolve outstanding financial issues and streamline disputed entries in the federal audit records.
The Senate Committee on Public Accounts has cleared the Nigeria Customs Service of allegations involving an alleged N62.2 billion under-remittance, bringing an end to one of the most closely examined audit queries from the 2019 federal financial report.
The decision followed an investigative hearing held on Tuesday, where lawmakers reviewed explanations provided by the Comptroller-General of Customs, Bashir Adewale Adeniyi, regarding the disputed figures flagged by the Office of the Auditor-General of the Federation.
Audit Query Originated From 2017 Revenue Figures
At the centre of the investigation was a 2019 audit report referencing revenue records from 2017.
The report stated that while the Customs Service generated N691.242 billion in total revenue, only N629.23 billion was remitted into the Federation Account, leaving a gap of N62.2 billion.
The Auditor-General’s representatives presented the query before the committee, prompting a detailed response from the Customs leadership during the session chaired by Senator Ibrahim Dankwambo of Gombe North.
Customs CG Explains Alleged Misclassification of Funds
Responding to the allegation, Comptroller-General Bashir Adewale Adeniyi told the committee that the disputed sum did not represent missing or unremitted revenue, but rather a misclassification of levies collected on behalf of different government agencies.
He explained that while certain levies are required to be paid into the Federation Account, others—including charges linked to local production sectors such as wheat, textiles, and wines—are retained outside the federation pool under existing financial arrangements.
According to him, this distinction accounted for the perceived discrepancy highlighted in the audit report.
Lawmakers Question Why Issue Escalated to Senate Level
Following the explanations, Senator Babangida Hussaini of Jigawa North West raised concerns over why the matter escalated to a full Senate investigation, suggesting it should have been resolved at the reconciliation stage between auditors and the agency.
He noted that many of the issues raised in the first set of queries appeared administrative in nature and could have been clarified earlier without reaching the legislative chamber.
Customs Boss Cites Historical Institutional Tensions
In his defence, Adeniyi told the committee that the period under review coincided with strained relations between the National Assembly and the Customs Service, which he suggested contributed to delays in resolving audit discrepancies at an earlier stage.
He implied that the strained institutional environment affected reconciliation processes that typically resolve such accounting issues before escalation.
Senate Moves to Close Case With New Reconciliation Panel
After reviewing the explanations and deliberating on the submissions, the committee formally vacated the N62.2 billion under-remittance query against the Customs Service.
However, lawmakers did not conclude the entire audit review process.
Instead, they resolved to set up a smaller reconciliation panel to examine the remaining 74 queries contained in the 2019 and 2020 audit reports.
The panel is expected to work directly with the Customs Service to resolve outstanding financial issues and streamline disputed entries in the federal audit records.
