Customs targets N11.07tn revenue for 2026 after surpassing 2025 goal

By Henry Umoru

ABUJA — The Nigeria Customs Service (NCS) has projected N11.074 trillion in revenue for the 2026 fiscal year, following its record performance in 2025 when it exceeded its revenue target by 10.24 per cent.

Comptroller-General of Customs, Adewale Adeniyi, disclosed this on Monday while defending the Service’s 2025 budget performance and presenting its 2026 revenue and expenditure estimates before the Senate Committee on Customs, Excise and Tariff, chaired by Senator Isah Jibrin (APC, Kogi East).

Adeniyi said the Service generated N7.277 trillion in 2025, surpassing its revenue target of N6.584 trillion by N674 billion.

He also revealed that the Customs Service had realised N4.43 trillion in revenue as of May 31, 2026, expressing confidence that the agency would meet or even surpass its 2026 target despite prevailing global economic challenges.

According to him, the projected N11.074 trillion revenue comprises N5.542 trillion for the Federation Account, N1.491 trillion for non-Federation accounts, N2.773 trillion from Import Value Added Tax (VAT), and about N1.266 trillion from the four per cent Free-on-Board (FOB) levy.

For expenditure, the Customs Service proposed a 2026 budget of N1.235 trillion, comprising N421 billion for personnel costs, N307 billion for overheads and N565 billion for capital projects.

Adeniyi, however, acknowledged that recent Federal Government fiscal measures, including the reduction in import tariffs and levies on new and used vehicles, could reduce Customs revenue.

He explained that the revised tariff regime, which took effect on May 1, 2026, was introduced to stimulate trade and ease the burden on importers but would likely affect revenue generation.

“The tariff on vehicles and the associated levies have been reduced significantly. We believe this is one of the measures that may negatively affect our revenue performance,” he said.

The Comptroller-General also noted that government incentives, including duty waivers on healthcare products, compressed natural gas (CNG) and electric vehicles, the continued suspension of telecommunications excise duties and other import duty exemptions, affected Customs revenue in 2025.

Despite these challenges, Adeniyi said the Service would rely on technology-driven reforms and stronger enforcement to achieve its 2026 target.

He listed the full deployment of the Unified Customs Information System (B’Odogwu), enhanced post-clearance audits, improved trade facilitation programmes and intensified anti-smuggling operations as key strategies for boosting revenue.

He added that while global uncertainties, including the ongoing Middle East crisis, could impact international trade, the Service remained optimistic about meeting its revenue target.

Responding, Chairman of the Senate Committee on Customs, Excise and Tariff, Senator Isah Jibrin, commended the Customs Service for its strong revenue performance and congratulated Adeniyi on the six-month extension of his tenure recently approved by President Bola Tinubu.

He said the Service had recorded significant improvements in revenue generation, anti-smuggling operations, trade facilitation and infrastructure development under Adeniyi’s leadership.

“Customs under your leadership has been transformed through reforms that have strengthened revenue generation, enhanced anti-smuggling operations, improved trade facilitation and created a better environment for doing business. We encourage you to sustain the momentum and achieve the ambitious 2026 revenue target,” Jibrin said.

The committee subsequently gave its approval to the Customs Service’s 2026 budget proposal through a voice vote by members present at the session.