***Lawmakers approve N1.235tn spending plan after strong budget defence
***Customs beats 2025 revenue target by N674bn despite global economic shocks
***CG warns Middle East tensions, shipping disruptions threaten 2026 projections

 

The Senate has thrown its weight behind the Nigeria Customs Service’s (NCS) ambitious N11.074 trillion revenue target for the 2026 fiscal year, expressing confidence that ongoing reforms under Comptroller-General Adewale Adeniyi will enable the agency to sustain record-breaking collections despite growing global trade uncertainties.

The endorsement came on Monday after the Senate Committee on Customs and Excise approved the Service’s N1.235 trillion expenditure proposal following a detailed budget defence by the Customs management at the National Assembly.

Chairman of the committee, Senator Isah Jibrin, described the proposed revenue target as challenging but achievable, urging the Service to maintain the aggressive revenue mobilisation strategy that saw it outperform expectations in 2025.

Jibrin also commended President Bola Ahmed Tinubu for extending Adeniyi’s tenure, saying the move would ensure continuity in the reforms that have transformed Customs operations, strengthened anti-smuggling efforts and boosted trade facilitation.

“The extension of the Comptroller-General’s tenure will allow him to consolidate the reforms already yielding significant results. Customs remains one of Nigeria’s most strategic revenue-generating institutions, and the expectations are understandably high,” he said.

Responding, Adeniyi thanked the President for the confidence reposed in him and appreciated members of the committee for reconvening during their legislative recess to consider the agency’s budget proposal.
The Customs boss disclosed that although the National Assembly approved a 2025 revenue target of N6.584 trillion, the Service generated N7.277 trillion, surpassing the benchmark by N674.1 billion, representing a 10.24 per cent increase.

He said the achievement came despite several government fiscal interventions and global economic disruptions that affected import volumes and Customs collections.

According to him, factors such as the suspension of excise duty on telecommunications services, delayed implementation of the Green Tax, import duty waivers on compressed natural gas (CNG), electric vehicles, healthcare equipment and industrial raw materials, as well as the lingering effects of the Russia-Ukraine conflict, all constrained revenue generation.

However, he noted that while Customs exceeded its revenue target, only N808.86 billion, representing 71.46 per cent of its approved N1.132 trillion expenditure budget, was released in 2025.

N11.074tn Target Built on Reforms

For 2026, Adeniyi said the Service is projecting total revenue of N11.074 trillion, comprising: N5.542 trillion from Federation Account revenue; N1.491 trillion from non-Federation collections; 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 projection to sweeping institutional reforms, including the successful deployment of the indigenous Unified Customs Information System (UCIS), codenamed B’Odogwu, enhanced post-clearance audits, intelligence-led anti-smuggling operations and expanded trade facilitation initiatives.

“Our technology platform is now stable and fully operational. It has improved automation across our commands, strengthened compliance and significantly enhanced revenue collection,” he said.
Adeniyi also revealed that the Presidential Enabling Business Environment Council (PEBEC) recently ranked the Nigeria Customs Service as the country’s most improved government agency in trade facilitation and ease of doing business.

Despite the optimistic projections, the Comptroller-General warned that external developments remain a major source of concern. He disclosed that Customs generated N4.043 trillion in the first half of 2026 against a projected N5.5 trillion, blaming the shortfall on disruptions to global shipping caused by tensions around the Strait of Hormuz.

“The crisis around the Strait of Hormuz disrupted global supply chains and reduced cargo throughput into Nigerian ports. We are encouraged, however, that June recorded our strongest monthly revenue performance this year, giving us confidence that collections will improve as global trade stabilises,” he said.

Adeniyi further informed lawmakers that Customs is strengthening implementation of the African Continental Free Trade Area (AfCFTA) through collaboration with the AfCFTA Secretariat, the African Development Bank (AfDB) and neighbouring customs administrations.
He disclosed that Nigerian Customs officials will soon visit Zimbabwe to understudy the joint border management model operated by Zimbabwe and South Africa, with plans to replicate similar arrangements at the Seme Border and other strategic entry points.

During the budget review, senators queried an allocation of over N210 billion under “Financial and Miscellaneous Services.”
The Customs chief explained that the classification followed the Federal Government’s official Chart of Accounts and covered 84 approved expenditure items, including recruitment, staff promotions, overseas missions, publicity, laboratory services, advocacy programmes, annual conferences and other statutory administrative obligations.

Satisfied with the explanations, the committee unanimously approved both the N11.074 trillion revenue target and the N1.235 trillion expenditure estimate for the 2026 fiscal year.

Before adjourning, Senator Jibrin congratulated the Comptroller-General on his tenure extension and challenged the Customs leadership to build on its recent achievements by exceeding the newly approved revenue target and further strengthening its contribution to Nigeria’s economic growth.