Senate Gives Nod to Customs’ ₦11.07tn Revenue Projection for 2026
Senate Gives Nod to Customs’ ₦11.07tn Revenue Projection for 2026
The Senate on Wednesday approved the 2026 budget proposal of the Nigeria Customs Service (NCS), endorsing a revenue target of ₦11.074 trillion and total expenditure of ₦1.295 trillion for the 2026 fiscal year.
The approval followed the adoption of the report of the Senate Committee on Customs, Excise and Tariffs, chaired by Senator Isah Jibrin (APC-Kogi), during plenary.
Presenting the report, Jibrin said the committee reviewed the implementation of the Customs Service’s 2025 budget before considering the 2026 estimates.
He disclosed that the NCS surpassed its 2025 revenue target of ₦6.5 trillion, generating about ₦7.2 trillion, representing 110.53 per cent performance.
According to him, revenue generation would have been even higher but for the suspension of telecoms excise duty, healthcare production incentives and disruptions to global trade caused by the Russia-Ukraine conflict, which reduced imports, particularly wheat.
On expenditure, Jibrin noted that although the Customs Service had an approved 2025 budget of about ₦1.132 trillion, actual spending stood at ₦591 billion.
He attributed the shortfall in capital expenditure to delays in approvals by the Bureau of Public Procurement (BPP) and the Federal Executive Council (FEC), forcing several projects to be rolled over to the 2026 fiscal year.
The committee chairman explained that wider deployment of technology, enhanced revenue recovery mechanisms and real-time audit systems would support the agency’s projected ₦11.074 trillion revenue target for 2026.
He added that the proposed ₦1.295 trillion expenditure comprises ₦421 billion for personnel costs, ₦307 billion for overheads and ₦565 billion for capital projects.
“The funding is expected to come mainly from the statutory four per cent Free on Board (FOB) levy under the Nigerian Customs Service Act, 2023,” he said.
Based on its findings, the committee recommended Senate approval of both the proposed revenue target and expenditure estimates.
Contributing to the debate, Deputy Senate President Jibrin Barau commended the committee for its detailed report and praised the Comptroller-General of Customs and the agency’s workforce for their outstanding performance.
Barau said the Customs Service’s record revenue generation had vindicated President Bola Tinubu’s decision to extend the tenure of the Comptroller-General.
“You have an agency that budgeted to generate about ₦6.5 trillion but ended up generating ₦7.2 trillion. That is a wonderful performance, and we cannot commend the Comptroller-General and his team enough,” he said.
He observed that despite generating substantially higher revenue, the organisation spent only ₦591 billion in 2025, with a significant portion directed towards capital projects.
Barau also described the agency’s projected revenue target of more than ₦11 trillion for 2026 as a reflection of confidence in the reforms and innovations introduced by its leadership.
“For an agency to propose generating ₦11 trillion and spending only ₦1.2 trillion to run its operations shows remarkable fiscal discipline. This is an institution Nigerians should be proud of,” he added.
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 expenditure estimates.
Akpabio commended the Senate Committee on Customs, Excise and Tariffs for its thorough review of the budget proposal and congratulated the leadership of the Customs Service on its performance.
He expressed confidence that the approved budget would further strengthen the operations of the Nigeria Customs Service and enhance revenue generation for the Federal Government.
