The Senate Public Accounts Committee has cleared the Nigeria Customs Service (NCS) of three audit queries raised against the agency while setting up an ad hoc reconciliation committee to examine 76 outstanding audit issues.

The decision followed explanations provided by the Comptroller-General of Customs, Adewale Adeniyi, during a hearing on discrepancies contained in audit reports.

Representatives of the Office of the Auditor-General informed lawmakers that the Customs Service generated over ₦691 billion in revenue in 2017 but remitted only about ₦629 billion to the Federation Account, leaving an alleged outstanding balance of ₦62.2 billion.

Responding to the query, Adeniyi explained that the disputed amount consisted of levies collected on behalf of other government agencies and was therefore not required to be paid into the Federation Account.

He argued that the sum had been wrongly classified as unremitted revenue in the audit report.

According to the Customs boss, while some levies collected by the service are remitted to the Federation Account, others—including levies on the local production of wheat, textiles and wines—are designated for separate accounts in line with existing regulations.

He maintained that the ₦62.2 billion in question fell within this category and should not have been listed as revenue due for remittance.

Adeniyi also addressed the second and third audit queries, with members of the committee expressing satisfaction with the explanations provided.

Some senators questioned why the issues had escalated to a legislative investigation, noting that they could have been resolved through routine reconciliation between Customs officials and auditors.

In response, Adeniyi explained that the audit years under review coincided with a period of strained relations between the National Assembly and the Nigeria Customs Service, which may have contributed to the unresolved discrepancies.

Following the hearing, the committee resolved to establish an ad hoc reconciliation panel comprising officials from the Customs Service and the Auditor-General’s office to review the remaining 76 audit queries and report back for further legislative consideration.

The reconciliation committee is expected to work towards resolving all outstanding discrepancies before any further action is taken by the Senate.