Nigeria Customs Service (NCS) has set an ambitious revenue target of N11.07 trillion for 2026 despite acknowledging that the Federal Government’s recent reduction in import tariffs on both brand-new and fairly used vehicles could reduce customs earnings.

The Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi, disclosed this yesterday while defending the Service’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise, chaired by Hon. Leke Abejide, at the National Assembly in Abuja.

Adeniyi said the 2026 revenue projection comprised N5.542 trillion for the Federation Account, N1.491 trillion for non-Federation accounts, N2.273 trillion from Import Value Added Tax (VAT) and about N1.266 trillion from the four per cent Free-on-Board (FOB) levy.

He explained that although the Service remains confident of meeting the target through improved technology and stronger compliance measures, recent fiscal policy changes, particularly the reduction in tariffs and levies on imported vehicles, could negatively affect revenue collections.

According to him, the revised fiscal measures, which took effect on May 1, 2026, significantly reduced duties on both brand-new and fairly used vehicles following calls by stakeholders for a review of the country’s import tariff regime.

“The tariff on vehicles and levies on vehicles have been reduced significantly. We believe this is one of the measures that may negatively affect our revenue performance,” Adeniyi said, adding that Customs is mandated to implement fiscal policies approved by the Federal Government through the Ministry of Finance.

Responding to concerns whether the tariff reduction could encourage importers to redirect cargo from neighbouring ports to Nigeria, Adeniyi said periodic fiscal policy adjustments were necessary to respond to prevailing economic realities, stimulate trade and support key sectors of the economy.

Meanwhile, 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 yesterday 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.