The Nigeria Customs Service (NCS) has set an ambitious revenue target of N11.074 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 on Monday 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 comprises 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 raised by committee members over 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.

Despite the anticipated revenue impact, he said the Service expects to bridge the gap by leveraging the Unified Customs Information System (B’Odogwu), strengthening its post-clearance audit system, expanding trade facilitation programmes and intensifying anti-smuggling operations.

The Customs boss also revealed that the Service exceeded its 2025 revenue target by generating N7.277 trillion, surpassing its N6.584 trillion target by 10.24 per cent, despite several concessions granted on healthcare products, CNG and electric vehicles, the continued suspension of telecom excise duty and extensive import duty waivers.

Speaking during the hearing, Chairman of the committee, Hon. Leke Abejide, commended President Bola Ahmed Tinubu for approving a reduction in import tariffs on vehicles, noting that duties on brand-new vehicles had been reduced by 15 per cent, while tariffs on fairly used vehicles were cut by five per cent.

He said the policy would require an average of 90 days before full implementation, explaining that importers with consignments already in the ports would still be affected by the previous tariff regime.

Abejide expressed optimism that the measure would encourage more importers to use Nigerian ports and improve the competitiveness of the country’s maritime sector, declaring, “All we need to say is, ‘Thank you, Baba,’ for listening to the concerns of Nigerians.”