SENATE APPROVES CUSTOMS’ N1.3TN BUDGET, ENDORSES N11.07TN REVENUE TARGET
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By; Sunmola Ganiyat
The Senate on Wednesday approved the 2026 budget proposal of the Nigerian Customs Service (NCS), endorsing a revenue target of ₦11.074 trillion and an expenditure estimate of ₦1.295 trillion for the fiscal year.
The approval followed the adoption of the report presented by the Senate Committee on Customs, Excise and Tariffs during plenary.
Presenting the report, the committee chairman, Senator Isah Jibrin, said the panel reviewed the Customs Service’s 2025 budget implementation before considering its 2026 estimates.
He disclosed that the agency surpassed its 2025 revenue target of ₦6.5 trillion, generating about ₦7.2 trillion, representing a performance rate of 110.53 per cent.
Jibrin noted, however, that revenue generation could have been higher but for factors such as the suspension of excise duty on telecommunications services, government policies encouraging local production of healthcare products and disruptions to global trade caused by the Russia-Ukraine war, which affected imports, particularly wheat.
On expenditure, the committee reported that although the Customs Service had an approved 2025 budget of about ₦1.132 trillion, it had spent ₦591 billion.
The committee attributed the low capital expenditure to 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.
According to the report, the Customs Service intends to achieve its 2026 revenue target through greater deployment of technology, enhanced revenue recovery strategies, real-time audit systems, improved trade facilitation and intensified anti-smuggling operations.
The proposed expenditure of ₦1.295 trillion comprises ₦421 billion for personnel costs, ₦307 billion for overheads and ₦565 billion for capital projects.
The committee also noted that the budget would be financed primarily through the statutory four per cent Free on Board (FOB) levy provided under the Nigerian Customs Service Act, 2023.
Based on its findings, the committee recommended Senate approval of both the proposed revenue target and expenditure estimates.
During the debate, Deputy Senate President Barau Jibrin commended the committee for its detailed report and praised the Comptroller-General of Customs and the agency’s personnel for exceeding their 2025 revenue target.
He said the impressive performance justified President Bola Tinubu’s decision to extend the tenure of the Comptroller-General, noting that generating ₦7.2 trillion against a target of ₦6.5 trillion reflected strong leadership and operational efficiency.
Barau further observed that despite the significant revenue generated, the agency spent only ₦591 billion in 2025, with a substantial portion allocated to capital projects rather than overhead costs.
He described the proposal to generate more than ₦11 trillion in 2026 as evidence of the Customs Service’s confidence in its ongoing reforms and innovations.
Following the committee’s recommendations, Senate President Godswill Akpabio put the proposals to a voice vote, after which lawmakers unanimously approved both the revenue target and expenditure estimates.
Akpabio commended the Senate Committee on Customs, Excise and Tariffs for its thorough review of the budget and congratulated the leadership of the Nigerian Customs Service on its performance.
He expressed confidence that the approved budget would strengthen the operations of the Customs Service, enhance revenue generation and support the Federal Government’s drive to improve non-oil revenue while reducing reliance on borrowing.
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