The Senate Committee on Customs and Excise has approved the Nigeria Customs Service’s (NCS) proposed N11.074 trillion revenue target and N1.235 trillion expenditure estimate for the 2026 fiscal year, expressing confidence that the agency can sustain its reform-driven revenue growth despite global trade uncertainties.
The approval followed the defence of the 2026 budget proposal by the Comptroller-General of Customs, Adewale Adeniyi, before the committee at the National Assembly on Monday.
Chairman of the Senate Committee on Customs and Excise, Isah Jibrin, described the revenue projection as ambitious but achievable, urging Customs to intensify efforts to meet the target.
Jibrin also commended President Bola Ahmed Tinubu for extending Adeniyi’s tenure, saying the decision would allow the Customs Service to consolidate reforms that have strengthened revenue generation, anti-smuggling operations and trade facilitation.
“Customs remains one of the biggest revenue-generating agencies in the country. That places enormous responsibility on the Service, and I urge the management to work even harder to achieve its ambitious revenue target for 2026,” the committee chairman said.
Responding, Adeniyi thanked the President for the confidence reposed in him and expressed appreciation to members of the committee for interrupting their legislative recess to consider the agency’s budget proposal.
Reviewing the Service’s 2025 performance, the Comptroller-General disclosed that although the National Assembly approved a revenue target of N6.584 trillion, the agency generated N7.277 trillion, exceeding the target by N674.1 billion, or 10.24 per cent.
He attributed the performance to ongoing reforms despite challenges such as the suspension of excise duty on telecommunications services, delayed implementation of the Green Tax, import duty waivers on compressed natural gas (CNG), electric vehicles, healthcare equipment and industrial raw materials, as well as broader global economic disruptions, including the impact of the Russia-Ukraine conflict on imports.
However, Adeniyi noted that the Service received only N808.86 billion, representing 71.46 per cent of its approved N1.132 trillion expenditure budget for 2025.
For 2026, Customs is projecting N11.074 trillion in total revenue, comprising N5.542 trillion from Federation Account revenue, N1.491 trillion from non-Federation collections, N2.773 trillion from Import VAT and N1.266 trillion from the four per cent Free-on-Board (FOB) cost of collection.
The Customs boss said the projection was anchored on institutional reforms, including the deployment of the indigenous Unified Customs Information System (UCIS), code-named B’Odogwu, enhanced post-clearance audits, intelligence-driven anti-smuggling operations and expanded trade facilitation measures.
“Our technology platform is now stable and fully operational. It has strengthened automation across our commands, improved compliance and enhanced revenue collection,” he said.
He added that the Presidential Enabling Business Environment Council> (PEBEC) recently rated the Nigeria Customs Service as the country’s most improved government agency in trade facilitation and ease of doing business.
Despite the optimistic outlook, Adeniyi cautioned that geopolitical developments continued to pose risks to revenue generation. He revealed that Customs generated N4.043 trillion in the first half of 2026 against a projected N5.5 trillion, attributing the shortfall largely to disruptions in global shipping caused by tensions around the Strait of Hormuz.
“The major challenge confronting us today is the crisis around the Strait of Hormuz. It has disrupted global supply chains and reduced cargo throughput into Nigerian ports. We are optimistic that as the situation continues to de-escalate, international trade will recover. June recorded our highest monthly revenue this year, and we expect that trend to continue,” he said.
On regional trade integration, the Comptroller-General said Customs was collaborating with the African Continental Free Trade Area Secretariat, the African Development Bank> and neighbouring customs administrations to improve cross-border trade under the African Continental Free Trade Area framework.
He also disclosed plans for Nigerian Customs officials to visit Zimbabwe to study its joint border management arrangement with South Africa, with the aim of replicating similar systems at Seme Border and other strategic border posts.
During the budget review, lawmakers sought clarification on an allocation exceeding N210 billion under “Financial and Miscellaneous Services.” Adeniyi explained that the classification followed the Federal Government’s official Chart of Accounts and covered 84 approved expenditure items, including publicity, overseas missions, recruitment, promotions, advocacy, laboratory services and other statutory administrative obligations.
Satisfied with the explanations, the committee unanimously approved both the N11.074 trillion revenue target and the N1.235 trillion expenditure proposal for 2026.
Before adjourning, Senator Jibrin congratulated Adeniyi on the extension of his tenure and urged the Customs management to sustain its reform momentum and surpass the approved revenue target in the interest of Nigeria’s economy.