Customs exceeds 2025 revenue target, seeks approval for N11.27tn 2026 budget

By Gift ChapiOdekina, Abuja

ABUJA — The Nigeria Customs Service (NCS) says it generated ₦7.277 trillion in revenue in 2025, exceeding its target of ₦6.584 trillion by 10.24 per cent, as it presented a proposed ₦11.274 trillion revenue target and expenditure estimates for the 2026 fiscal year to the House of Representatives Committee on Customs and Excise.

The Comptroller-General of Customs, Bashir Adewale Adeniyi, disclosed this on Monday during the agency’s budget defence before the committee in Abuja.

Chairman of the House Committee on Customs and Excise, Rep. Leke Abejide, said the exercise was in line with the National Assembly’s constitutional responsibility to scrutinise the agency’s budget proposals.

“It is not a long speech day. It is simply a day to carry out what Sections 88 and 89 of the 1999 Constitution mandate us to do, which is to scrutinise your budget proposal,” Abejide said.

He added that the committee would submit its report to the House after completing its review.

Presenting an overview of the agency’s performance, Adeniyi attributed the revenue growth to improved operational efficiency despite fiscal incentives introduced by the Federal Government that reduced potential customs earnings.

He said duty waivers on healthcare products, compressed natural gas (CNG) vehicles, electric vehicles and import duty exemption certificates affected revenue generation during the year.

According to him, the suspension of excise duties on telecommunications services and other tax relief measures also had revenue implications.

The Comptroller-General disclosed that the Service received ₦808.86 billion, representing about 71.4 per cent of its approved ₦1.132 trillion expenditure budget for 2025.

He attributed the shortfall to delays in implementing the funding framework introduced under the Nigeria Customs Service Act.

Adeniyi explained that the Service operated under the previous seven per cent cost-of-collection model until August 2025 before transitioning to the new four per cent Free-on-Board (FOB) funding mechanism.

“The variance between what was approved and what we received resulted from the delayed implementation of the new funding structure,” he said.

He also explained that concessionary fees, previously paid through the Comprehensive Import Supervision Scheme (CISS) account managed by the Federal Ministry of Finance and the Central Bank of Nigeria, are now paid directly by the Nigeria Customs Service under the new law.

During the session, members of the committee sought clarification on the differences between the approved budget, actual releases and expenditure, as well as the operation of concessionary fees.

Looking ahead, Adeniyi said the Service is targeting ₦11.274 trillion in revenue for 2026.

He said the projection comprises ₦5.542 trillion from federation revenue, ₦1.495 trillion from non-federation revenue, ₦2.973 trillion from import Value Added Tax (VAT) and ₦1.264 trillion from the four per cent FOB collection.

According to him, the target will be driven by technology-based reforms, including full deployment of the Unified Customs Management System, enhanced post-clearance audits, improved trade facilitation and stronger stakeholder engagement.

The Comptroller-General also announced reductions in import levies on vehicles under the 2026 fiscal policy.

He said the levy on used vehicles has been reduced from 15 per cent to five per cent, while that on new vehicles has been cut from 20 per cent to 10 per cent.

Abejide urged the Customs Service to ensure Nigerians were adequately informed about the reductions.

“I want the general public to know that the government is doing something good for them,” he said.

Adeniyi acknowledged that while the reductions would ease costs for importers and consumers, they were expected to reduce Customs revenue.

He said the measures formed part of broader fiscal policies approved by the Federal Ministry of Finance to support key sectors of the economy, including healthcare and transportation.

For the 2026 fiscal year, the Nigeria Customs Service proposed ₦421.7 billion for personnel costs, ₦307.77 billion for overhead expenditure and more than ₦620 billion for capital projects.

According to Adeniyi, priority will be given to completing ongoing projects, expanding infrastructure, improving staff welfare and enhancing operational efficiency.

He appealed to the National Assembly to approve the proposals, expressing confidence that the funding would strengthen the Service’s capacity to boost revenue generation, facilitate legitimate trade and support national economic growth.