FRC Queries Customs Over Failure to Submit Audited Accounts

Nigeria’s Financial Reporting Council (FRC) has expressed serious concern over the failure of the Nigeria Customs Service (NCS) to submit its audited financial statements since 2019, a lapse that raises questions about transparency and accountability in one of the country’s most critical revenue-generating agencies.

Speaking during an oversight session in Abuja, FRC officials stressed that the Customs Service, as a government parastatal, is legally required to prepare and submit audited accounts annually in line with the Fiscal Responsibility Act and the Financial Reporting Council Act. The council noted that the prolonged delay undermines Nigeria’s efforts to strengthen fiscal discipline and public sector accountability.

According to reports from Punch Newspapers, Vanguard, and ThisDay, the FRC disclosed that Customs has not filed its audited accounts for over six years, despite handling billions of naira in revenue. The council warned that such lapses could erode public confidence and hinder Nigeria’s compliance with international financial reporting standards.

The FRC’s Director of Monitoring and Enforcement explained that audited financial statements are not mere bureaucratic requirements but essential tools for assessing the financial health of government agencies. They provide clarity on revenue inflows, expenditure patterns, and compliance with statutory obligations. Without them, oversight bodies and the public are left in the dark about how funds are managed.

Lawmakers present at the session echoed the council’s concerns, describing the situation as unacceptable. Members of the House Committee on Finance insisted that Customs must account for its stewardship, given its strategic role in revenue generation and border enforcement. They emphasized that transparency is key to curbing corruption and ensuring that government agencies operate within the law.

The Customs Service, however, attributed the delay to internal challenges, including restructuring processes and the transition to new accounting systems. Officials assured lawmakers that efforts were underway to finalize outstanding audits and submit them to the FRC. They pledged to clear the backlog and align with statutory requirements going forward.

Analysts say the controversy highlights broader issues in Nigeria’s public financial management system. While agencies like Customs generate significant revenue, weak compliance with reporting standards undermines accountability and creates room for inefficiency. Experts argue that enforcing strict deadlines for audited accounts would improve fiscal discipline and enhance Nigeria’s credibility with international partners.

Civil society organizations have also weighed in, urging the government to sanction agencies that fail to comply with financial reporting obligations. They argue that transparency in revenue collection is critical, especially at a time when Nigeria is grappling with budget deficits and rising debt.

The FRC’s intervention is expected to intensify pressure on Customs to act swiftly. Lawmakers have hinted at possible sanctions if the service fails to submit its audited accounts within a stipulated timeframe. For now, Nigerians await concrete action to ensure that one of the country’s most important agencies operates with full transparency.