Senate approves Customs’ N1.3tn budget, backs N11.07tn revenue target

The Senate on Wednesday approved the 2026 budget proposal of the Nigerian Customs Service, endorsing a revenue target of N11.074tn and an expenditure estimate of N1.295tn 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 examined the agency’s 2025 budget performance before considering its 2026 estimates.

According to him, the Customs Service exceeded its 2025 revenue target of N6.5tn by generating about N7.2tn, representing a performance of 110.53 per cent.

He, however, noted that the agency’s revenue could have been higher but for factors including the suspension of excise duty on telecommunications services, fiscal policies promoting local production of healthcare products and disruptions to global trade arising from 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 N1.132tn in 2025, actual spending stood at N591bn.

Jibrin attributed the low capital utilisation to delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council, resulting in several projects being rolled over to the 2026 fiscal year.

He explained that the Customs Service plans to achieve its N11.074tn revenue target 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 N1.295tn comprises N421bn for personnel costs, N307bn for overheads and N565bn for capital projects. It added that the budget would be funded mainly from the statutory four per cent Free on Board 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.

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 agency’s personnel for their performance.

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Barau said the strong revenue performance 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 added that despite the significant increase in revenue generation, the agency spent only N591bn in 2025, with a substantial portion of the expenditure devoted to capital projects rather than overhead costs.

According to him, the proposal to generate more than N11tn in 2026 reflects the confidence of the Customs leadership in the reforms and innovations introduced within the service.

“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 further said the spending pattern, which prioritises capital projects over overhead costs, reflects prudent financial management.

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, expressing confidence that the approved budget would strengthen the operations of the Customs Service and boost revenue generation for the Federal Government.

The approval comes as the National Assembly continues legislative consideration of the 2026 budgets of key revenue-generating agencies, with the Federal Government banking on improved non-oil revenue to support budget implementation and reduce dependence on borrowing.