Senate Approves Customs 2026 Budget, Backs N11.07tn Revenue Target

The Senate on Wednesday approved the 2026 budget proposal of the Nigerian Customs Service (NCS), endorsing a revenue target of N11.074 trillion and an expenditure estimate of N1.295 trillion for the 2026 fiscal year.

The approval followed the presentation and consideration of the Senate Committee on Customs, Excise and Tariffs’ report, chaired by Senator Isah Jibrin (Kogi East), during plenary.

Presenting the report, Jibrin said the committee thoroughly reviewed the agency’s 2025 budget performance before examining the 2026 estimates.

According to him, the Customs Service surpassed its 2025 revenue target of N6.5 trillion, generating approximately N7.2 trillion, representing 110.53 per cent performance.

He, however, noted that the agency’s performance could have been higher but for several mitigating factors, including the suspension of excise duty on telecommunications services, fiscal policies encouraging local production of healthcare products, and disruptions in global trade caused by the Russia-Ukraine war, which affected imports, particularly wheat.

On expenditure, the committee disclosed that although the Customs Service had an approved budget of about N1.132 trillion in 2025, actual spending stood at N591 billion.

Jibrin attributed the low capital utilisation to delays in project 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.

He explained that the Customs Service had set an ambitious revenue target of N11.074 trillion for 2026, which it intends to achieve through increased deployment of technology, enhanced revenue recovery mechanisms, real-time audit systems, improved trade facilitation and intensified anti-smuggling operations.

The committee also stated that the proposed expenditure of N1.295 trillion comprises N421 billion for personnel costs, N307 billion for overhead costs, and N565 billion for capital expenditure, with funding to be sourced primarily from 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 for the 2026 financial year.

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 Customs workforce for their outstanding performance.

Barau said the impressive revenue generation justified President Bola Tinubu’s decision to extend the tenure of the Comptroller-General of Customs.

“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,” he said.

He further noted that despite the significant increase in revenue generation, the agency spent only N591 billion in 2025, with a substantial portion devoted to capital projects rather than overhead expenses.

According to him, the Customs Service’s proposal to generate over N11 trillion in 2026 reflects confidence in reforms and innovations introduced by its leadership.

“For an agency to propose generating N11 trillion and spending only N1.2 trillion to run its operations shows remarkable fiscal discipline. This is an institution Nigerians should be proud of,” Barau stated.

He added that the allocation pattern, which prioritises capital expenditure over overhead costs, demonstrates prudent financial management rarely seen in public institutions.

Following the committee’s recommendations, Senate President Godswill Akpabio put the proposals to a voice vote, and lawmakers unanimously approved both the revenue target and expenditure estimates.

Akpabio commended the Senate Committee on Customs, Excise and Tariffs for what he described as a thorough scrutiny of the budget proposal and congratulated the leadership of the Nigerian Customs Service on its performance.

He also thanked senators for their contributions to the budget’s consideration, expressing confidence that the approved estimates would further strengthen the operations of the Customs Service and enhance the Federal Government’s revenue.