Senate Approves Customs’ 2026 Budget, Endorses N11.074tn Revenue Target
The Senate on Wednesday approved the 2026 budget proposal of the Nigeria Customs Service (NCS), endorsing a revenue target of N11.074 trillion and total expenditure of N1.295 trillion for the 2026 fiscal year.
The approval followed the consideration and adoption of the report of the Senate Committee on Customs, Excise and Tariffs during plenary.
Presenting the report, Chairman of the committee, Senator Isah Jibrin (APC–Kogi East), said the panel reviewed the implementation of the Service’s 2025 budget before examining the 2026 estimates.
According to him, the Nigeria Customs Service surpassed its 2025 revenue target of N6.5 trillion, generating approximately N7.2 trillion, representing a performance of 110.53 per cent.
He noted that the Service could have generated even higher revenue but for the suspension of telecommunications excise duty, incentives granted to healthcare manufacturers, and disruptions in global trade arising from the Russia-Ukraine conflict, which affected import volumes, particularly wheat.
On expenditure, Jibrin disclosed that although the Service had an approved 2025 budget of about N1.132 trillion, actual spending stood at N591 billion.
He attributed the shortfall in capital expenditure to delays in project approvals by the Bureau of Public Procurement (BPP) and the Federal Executive Council (FEC), which led to the rollover of several projects into the 2026 fiscal year.
The lawmaker explained that the proposed N11.074 trillion revenue target for 2026 would be driven by expanded deployment of technology, strengthened revenue recovery mechanisms and real-time audit systems aimed at improving efficiency and compliance.
He further stated that the proposed expenditure of N1.295 trillion comprises N421 billion for personnel costs, N307 billion for overheads and N565 billion for capital projects.
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According to him, funding for the budget is expected to come primarily from the statutory four per cent Free on Board (FOB) levy provided under the Nigeria Customs Service Act, 2023.
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 Barau Jibrin commended the committee for what he described as a comprehensive report and praised the Comptroller-General of Customs and the entire workforce for their outstanding performance.
He said the Service’s impressive revenue generation justified President Bola Ahmed Tinubu’s decision to extend the tenure of the Comptroller-General.
“The agency projected revenue of about N6.5 trillion but generated N7.2 trillion. That is an exceptional performance, and the Comptroller-General and his team deserve commendation,” he said.
Barau also noted that despite generating significantly higher revenue, the Service spent only N591 billion in 2025, with a greater proportion allocated to capital projects than recurrent expenditure.
He described the projected N11.074 trillion revenue target for 2026 as a reflection of the confidence inspired by ongoing reforms and innovations within the Service.
“For an agency to project revenue of over N11 trillion while proposing to spend only N1.295 trillion on its operations demonstrates commendable fiscal discipline. It is an institution Nigerians should be proud of,” he added.
Following the presentation of 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 diligent scrutiny of the budget proposal and congratulated the leadership of the Nigeria Customs Service on its strong performance.
He expressed confidence that the approved budget would further strengthen the operational capacity of the Service and enhance revenue generation for the Federal Government.
By PRNigeria
