Senate Approves Customs' ₦1.3tn Budget, Endorses ₦11.07tn Revenue Goal

The Nigerian Senate has approved the 2026 budget proposal of the Nigeria Customs Service (NCS), endorsing a revenue target of ₦11.074 trillion and an expenditure plan of ₦1.295 trillion for the fiscal year.

The approval followed the adoption of the report presented by the Senate Committee on Customs, Excise and Tariffs during Wednesday's plenary session.

Committee Chairman, Senator Isah Jibrin, said the Customs Service surpassed its 2025 revenue target by generating approximately ₦7.2 trillion, exceeding the projected ₦6.5 trillion and achieving a performance rate of 110.53 percent.

He noted that revenue could have been higher but for the suspension of excise duties on telecommunications services, government policies encouraging local production of healthcare products, and disruptions in global trade caused by the Russia-Ukraine conflict.

According to the committee, the Customs Service spent ₦591 billion out of its approved ₦1.132 trillion budget in 2025, with delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council slowing capital project implementation.

For 2026, the agency plans to boost revenue through greater use of technology, improved revenue recovery systems, real-time audits, enhanced trade facilitation, and stronger anti-smuggling operations.

The approved expenditure includes ₦421 billion for personnel costs, ₦307 billion for overhead expenses, and ₦565 billion for capital projects. Funding will mainly come from the statutory four percent Free on Board (FOB) levy provided under the Nigeria Customs Service Act, 2023.

Deputy Senate President Barau Jibrin praised the Customs Service for its strong revenue performance, describing it as evidence of effective reforms and fiscal discipline. He also commended the agency's leadership for proposing to generate over ₦11 trillion while maintaining relatively modest operational spending.

Following a voice vote conducted by Senate President Godswill Akpabio, lawmakers unanimously approved both the revenue target and the expenditure estimates.

Akpabio said the approved budget would strengthen Customs operations, improve revenue generation, and support the Federal Government's drive to reduce dependence on borrowing through increased non-oil revenue.

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