The Senate on Wednesday approved the 2026 budget proposal of the Nigerian Customs Service (NCS), endorsing a revenue target of ₦11.074 trillion and an expenditure estimate of ₦1.295 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, the committee chairman, Senator Isah Jibrin, said the panel reviewed the agency’s 2025 budget performance before considering its 2026 projections.
Jibrin said the Customs Service surpassed its 2025 revenue target of ₦6.5 trillion by generating about ₦7.2 trillion, representing 110.53 per cent performance.
He, however, noted that the agency’s revenue could have been higher but for factors such as the suspension of excise duty on telecommunications services, fiscal measures encouraging local production of healthcare products and disruptions to global trade caused by the Russia-Ukraine war, which affected imports, particularly wheat.
On expenditure, the committee disclosed that while the Customs Service had an approved budget of about ₦1.132 trillion in 2025, actual spending stood at ₦591 billion.
Jibrin attributed the low capital expenditure performance to delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council, which led to the rollover of several projects into the 2026 fiscal year.
He said the Customs Service plans to achieve its ₦11.074 trillion revenue target through increased technology deployment, improved revenue recovery systems, real-time auditing, enhanced trade facilitation and intensified anti-smuggling operations.
The committee stated that the proposed ₦1.295 trillion expenditure comprises ₦421 billion for personnel costs, ₦307 billion for overheads and ₦565 billion for capital projects.
It added that the budget would be funded mainly through 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 that the Senate approve 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 (CGC) and personnel of the service for their performance.
Barau said the agency’s revenue performance justified President Bola Tinubu’s decision to extend the tenure of the Comptroller-General.
“You have an entity that budgeted to generate about ₦6.5 trillion but ended up generating ₦7.2 trillion. That is a wonderful performance, and we cannot commend the Comptroller-General and his team enough,” he said.
He noted that despite the increase in revenue generation, the Customs Service spent only ₦591 billion in 2025, with a significant portion of the expenditure allocated to capital projects rather than overhead costs.
According to him, the proposal to generate more than ₦11 trillion in 2026 reflects confidence in the reforms and innovations introduced within the service.
“For an agency to propose generating ₦11 trillion and spending only ₦1.2 trillion to run its operations shows remarkable fiscal discipline. This is an institution Nigerians should be proud of,” Barau stated.
He added that the agency’s spending pattern, which prioritises capital projects over recurrent expenditure, demonstrates prudent financial management.
Following the committee’s recommendations, Senate President Godswill Akpabio put the proposals to a voice vote, and lawmakers unanimously approved the revenue target and expenditure estimates.
Akpabio commended the Senate Committee on Customs, Excise and Tariffs for its scrutiny of the proposal and congratulated the leadership of the Nigerian Customs Service on its performance.
He also thanked senators for their contributions, expressing confidence that the approved budget would strengthen Customs operations and improve revenue generation for the Federal Government.
