Senate Clears Customs’ ₦11.07tn Revenue Target for 2026

The Senate has approved the 2026 budget estimates of the Nigerian Customs Service (NCS), endorsing a revenue target of ₦11.

074 trillion.
The upper chamber also approved an expenditure estimate of ₦1.295 trillion for the 2026 fiscal year.
The approval followed the presentation and consideration of the report of the Senate Committee on Customs, Excise and Tariffs during plenary on Wednesday.
Presenting the report, the committee’s Chairman, Sen. Isah Jibrin (APC-Kogi), said the panel reviewed the agency’s 2025 budget performance before examining its 2026 estimates.
Jibrin said the NCS exceeded its 2025 revenue target of ₦6.5 trillion by generating about ₦7.2 trillion, representing a performance of 110.53 per cent.
He, however, noted that the agency could have generated more revenue but for several mitigating factors, including the suspension of excise duty on telecommunication services.
According to him, other factors included fiscal policies encouraging local production of healthcare products and disruptions in global trade caused by the Russia-Ukraine war, which affected imports, particularly wheat.
On expenditure, Jibrin said that although the Customs Service had an approved budget of about ₦1.132 trillion in 2025, actual spending stood at ₦591 billion.
He attributed the low capital utilisation to delays in project approvals by the Bureau of Public Procurement (BPP) and the Federal Executive Council (FEC), which forced several projects to be rolled over to the 2026 fiscal year.
Jibrin said the NCS had set an ambitious revenue target of ₦11.074 trillion for 2026.
According to him, the Service intends to achieve the target through increased deployment of technology, enhanced revenue recovery mechanisms, real-time audit systems, improved trade facilitation and intensified anti-smuggling operations.
He said the proposed expenditure of ₦1.295 trillion comprises ₦421 billion for personnel costs, ₦307 billion for overhead costs and ₦565 billion for capital expenditure.
He disclosed that the funding would be sourced primarily from 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 Senate approval of both the proposed revenue target and expenditure estimates for the 2026 financial year.
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 entire Customs workforce for their outstanding performance.
Barau said the impressive revenue generation 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 ₦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 further noted that despite the significant increase in revenue generation, the agency spent only ₦591 billion in 2025, with a substantial portion devoted to capital projects rather than overhead expenses.
According to him, the Customs Service’s proposal to generate more than ₦11 trillion in 2026 reflects confidence in the reforms and innovations introduced by its leadership.
“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 allocation pattern, which prioritises capital expenditure over overhead costs, demonstrates prudent financial management that is rarely seen in public institutions.
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 to the consideration of the budget, expressing confidence that the approved estimates would further strengthen the operations of the Customs Service and enhance revenue generation for the Federal Government.