Senate approves Customs’ N1.3tn budget, backs N11.07tn revenue target

The Nigerian Senate has given its approval to the 2026 budget proposal for the Nigerian Customs Service, endorsing a substantial revenue target of N11.074 trillion and an expenditure estimate of N1.295 trillion for the fiscal year. This decision follows the consideration and adoption of the report by the Senate Committee on Customs, Excise and Tariffs.

“

The Customs Service exceeded its 2025 revenue target of N6.5tn by generating about N7.2tn, representing a performance of 110.53 per cent.

During the presentation of the report, committee chairman Senator Isah Jibrin highlighted the agency's strong performance in 2025. The Customs Service surpassed its revenue target of N6.5 trillion by generating about N7.2 trillion, achieving a performance rate of 110.53 percent. However, Jibrin noted that revenue could have been higher, citing factors such as the suspension of excise duty on telecommunications, fiscal policies supporting local production, and global trade disruptions from the Russia-Ukraine war that impacted imports.

“

the agency’s revenue could have been higher but for factors including the suspension of excise duty on telecommunications services, fiscal policies promoting local production of healthcare products and disruptions to global trade arising from the Russia-Ukraine war, which affected imports, particularly wheat.

Regarding expenditure, the committee reported that while the Customs Service had an approved budget of approximately N1.132 trillion in 2025, actual spending was N591 billion. Delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council were identified as reasons for low capital utilization, leading to several projects being carried over to the 2026 fiscal year.

“

delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council, resulting in several projects being rolled over to the 2026 fiscal year.

The Customs Service aims to meet its ambitious N11.074 trillion revenue target for 2026 by increasing the deployment of technology, strengthening revenue recovery mechanisms, implementing real-time audit systems, enhancing trade facilitation, and intensifying anti-smuggling operations. The proposed expenditure includes N421 billion for personnel costs, N307 billion for overheads, and N565 billion for capital projects, funded primarily by the statutory four percent Free on Board levy.

“

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.