• Endorses N1.235tn expenditure proposal after budget defence
• Customs surpasses 2025 revenue target by N674bn, blames Middle East crisis for 2026 shortfall
Sunday Aborisade in Abuja
The Senate Committee on Customs and Excise on Monday approved a revenue target of N11.074 trillion and an expenditure proposal of N1.235 trillion for the Nigeria Customs Service (NCS) for the 2026 fiscal year.
The panel expressed confidence that the agency would consolidate ongoing reforms and sustain its impressive revenue performance despite prevailing global economic uncertainties.
The approval followed the defence of the agency’s 2026 budget proposal by the Comptroller-General of Customs, Mr.Bashir Adewale Adeniyi, before the committee at the National Assembly.
Chairman of the Senate Committee on Customs and Excise, Senator Isah Jibrin, said the committee was impressed by the reforms introduced by the Customs management, particularly in revenue generation, anti-smuggling operations and trade facilitation.
He also commended President Bola Tinubu for extending the tenure of the Comptroller-General of Customs, saying the decision would enable him to consolidate reforms already yielding positive results.
Jibrin said: “I want to appreciate the President of the Federal Republic of Nigeria for the recent extension of service granted to the Comptroller-General of Customs.
“Since assuming office, he has introduced various reforms which today have manifested in improved revenue generation, improved anti-smuggling operations and enhanced trade facilitation.
“I believe that within the next six months, he will have fully consolidated these reforms and placed the Nigeria Customs Service on a sustainable path.”
The senator noted that the Federal Government’s ambitious infrastructure programme required enormous financial resources and described the Customs Service as one of the country’s foremost revenue-generating agencies.
“Customs remains one of the major drivers of revenue generation in this country. I therefore urge the Comptroller-General and his management team to work even harder in 2026 to actualise the ambitious revenue target before the Service,” he added.
Presenting the agency’s budget proposal, the Comptroller-General expressed appreciation to President Tinubu for the extension of his tenure and thanked members of the committee for sacrificing part of their recess to consider the budget proposal.
“We really appreciate you and we do not take this for granted. We have always relied on the support and guidance of this distinguished committee, and we believe our relationship will continue to be guided by those principles,” he said.
Reviewing the Service’s 2025 performance, the Customs boss disclosed that although the National Assembly approved a revenue target of N6.584 trillion, the Service generated N7.277 trillion between January and December 2025.
According to him, the figure exceeded the approved target by N674.1 billion, representing 10.24 per cent above projection.
He, however, explained that the Service could have generated even more revenue but for several government policy interventions and global economic challenges.
Among the factors he listed were the suspension of excise duty on telecommunications services, delayed implementation of the Green Tax, import duty waivers granted on compressed natural gas (CNG) and electric vehicles, healthcare equipment, raw materials and capital machinery, as well as extensive Import Duty Exemption Certificates issued by the Federal Government.
He also cited disruptions arising from the Russia-Ukraine war, which affected wheat imports and other international trade flows.
Despite the strong revenue performance, the Comptroller-General disclosed that Customs received only N808.86 billion, representing 71.46 per cent, out of its approved N1.132 trillion expenditure budget for 2025.
Looking ahead, he said the Service had proposed a revenue target of N11.074 trillion for 2026.
The projected revenue, he explained, comprises N5.542 trillion from Federation Account revenue, N1.491 trillion from non-Federation revenue, N2.773 trillion from Import VAT and N1.266 trillion from the four per cent Free-on-Board (FOB) cost of collection.
He attributed the ambitious projection to ongoing reforms, including the successful deployment of the indigenous Unified Customs Information System (UCIS), known internally as B’Odogwu, enhanced post-clearance audits, improved systems audits and stronger intelligence-driven anti-smuggling operations.
“Our technology platform is now fully operational after overcoming initial implementation challenges. It has significantly improved automation across our commands and strengthened revenue collection and trade facilitation,” he said.
The Customs chief also revealed that the Presidential Enabling Business Environment Council (PEBEC) recently ranked the Nigeria Customs Service as the most improved government agency in trade facilitation and ease of doing business.
According to him, the Service has increasingly adopted intelligence-driven border surveillance using geospatial technology while strengthening collaboration with the private sector and international development partners.
However, he cautioned that external developments could affect the agency’s performance in 2026.
He identified the ongoing tensions in the Middle East, particularly around the Strait of Hormuz, as a major concern.
“The crisis has affected global supply chains and reduced cargo throughput into Nigeria. These are some of the assumptions that may affect revenue performance in 2026,” he explained.
The Comptroller-General disclosed that Customs had generated about N4.043 trillion during the first half of 2026, falling short of the projected mid-year target of approximately N5.5 trillion.
He expressed optimism that easing geopolitical tensions and improving international trade conditions would boost revenue in the second half of the year.
“We are hopeful that the de-escalation of the crisis will continue and that international trade activities will gradually return to normal. June recorded our highest monthly revenue so far in 2026, and we expect that momentum to continue,” he said.
The Customs boss also briefed lawmakers of Nigeria’s implementation of the African Continental Free Trade Area (AfCFTA), saying the Service was collaborating with the AfCFTA Secretariat, the African Development Bank (AfDB) and neighbouring customs administrations to improve cross-border trade and establish joint border posts.
He disclosed that Nigerian Customs officials would soon visit Zimbabwe to study the joint border management arrangement between Zimbabwe and South Africa with a view to replicating the model at Seme and other strategic borders.
During the interactive session, senators sought clarification on the proposed N210.64 billion earmarked for ‘Financial and Miscellaneous Services’ under the agency’s overhead expenditure.
Responding, the Comptroller-General explained that the classification followed the Federal Government’s official Chart of Accounts issued by the Office of the Accountant-General.
He said the heading covered 84 approved expenditure items, including publicity, foreign missions, sports development, annual conferences, recruitment, promotions, advocacy programmes, laboratory services and other statutory administrative obligations.
“These are not vague expenditures. Every item is clearly captured in the detailed budget documents submitted to the committee. We merely presented them under the summary heading provided in the government’s Chart of Accounts,” he explained.
At the conclusion of the budget defence, members of the committee unanimously approved both the proposed revenue target and expenditure estimates.
Putting the recommendations to a voice vote, Senator Jibrin asked lawmakers to approve the 2026 revenue target of N11.074 trillion.
The proposal received overwhelming support.
The committee thereafter unanimously approved the N1.235 trillion expenditure proposal for the 2026 fiscal year.
In his closing remarks, Jibrin congratulated the Comptroller-General once again on the extension of his tenure and urged the Customs management to intensify efforts to surpass its 2026 revenue target.
“I want to commend you and your management team for what you have achieved so far. We urge you to work harder and ensure that you actualise the projected revenue figures for 2026. The committee is satisfied with your responses and remains confident in your ability to deliver,” he said.
