Senate approves Customs N11.074trn revenue target

By Taiwo Scholarstica

The Nigerian Senate on Wednesday approved the a projected revenue target of N11.074 trillion and an expenditure estimate of N1.295 trillion for the 2026 fiscal year for the Nigeria Customs Service (NCS).

The approval followed the adoption of the report submitted by the Senate Committee on Customs, Excise and Tariffs during plenary.

Presenting the committee’s report, the Chairman of the panel, Senator Isah Jibrin, said lawmakers reviewed the agency’s performance in implementing its 2025 budget before considering the estimates for 2026.

According to him, the Nigeria Customs Service surpassed its 2025 revenue target of N6.5 trillion by generating approximately N7.2 trillion, representing a performance rate of 110.53 percent.

He noted, however, that the agency could have recorded even higher revenue if not for several factors, including the suspension of excise duty on telecommunications services, government policies encouraging the local production of healthcare products, and the impact of the Russia-Ukraine conflict, which disrupted global trade and reduced imports, particularly wheat.

The committee also reported that although the Customs Service had an approved budget of about N1.132 trillion in 2025, actual expenditure stood at N591 billion.

Jibrin explained that the low level of capital spending resulted largely from delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council, leading to the rollover of several projects into the 2026 fiscal year.

He added that the service intends to achieve its 2026 revenue target through greater deployment of technology, stronger revenue recovery strategies, real-time audit systems, improved trade facilitation, and intensified anti-smuggling operations.

The committee further disclosed that the proposed N1.295 trillion expenditure includes N421 billion for personnel costs, N307 billion for overhead expenses, and N565 billion for capital projects.

It noted that the budget would be financed mainly through the statutory four percent Free on Board levy provided under the Nigeria Customs Service Act, 2023.

Based on its review, the committee recommended that the Senate approve both the proposed revenue target and the expenditure estimates.

During the debate, Deputy Senate President Barau Jibrin commended the committee for its detailed assessment and praised the Comptroller-General of Customs and the officers of the service for their outstanding performance.

Barau said the impressive revenue performance justified President Bola Tinubu’s decision to extend the tenure of the Comptroller-General.

“You have an entity that budgeted to generate about N6.5 trillion but ended up generating N7.2 trillion. That is a wonderful performance, and we cannot commend the Comptroller-General and his team enough,” he said.

He also observed that despite the increase in revenue generation, the agency spent only N591 billion in 2025, with a significant share of the expenditure directed toward capital projects instead of overhead costs.

According to him, the proposal to generate more than N11 trillion in 2026 demonstrates the confidence of the Customs leadership in the reforms and innovations introduced within the agency.

“For an agency to propose generating N11 trillion and spending only N1.2 trillion to run its operations shows remarkable fiscal discipline. This is an institution Nigerians should be proud of,” Barau stated.

He further said the emphasis on capital expenditure over recurrent costs reflects prudent management of public resources.

Following the committee’s recommendations, Senate President Godswill Akpabio put the proposals to a voice vote, with lawmakers unanimously approving both the revenue target and the expenditure estimates.

Akpabio commended the Senate Committee on Customs, Excise and Tariffs for its thorough examination of the budget proposal and congratulated the leadership of the Nigeria Customs Service on its performance.

He also thanked the senators for their contributions to the debate, expressing optimism that the approved budget would enhance the operations of the Customs Service and improve revenue generation for the Federal Government.

The approval comes as the National Assembly continues its consideration of the 2026 budgets of key revenue-generating agencies, with the Federal Government placing greater emphasis on increasing non-oil revenue to support budget implementation and reduce reliance on borrowing.