Senate approves Customs’ 2026 budget, backs N11.074trn revenue target

The Senate on Wednesday approved the 2026 budget proposal of the Nigeria Customs Service, NCS, endorsing a revenue target of N11.074 trillion and a total expenditure of N1.295 trillion for the 2026 fiscal year.

The approval followed the consideration of the report of the Senate Committee on Customs, Excise and Tariffs, chaired by Senator Isah Jibrin during plenary.

Presenting the report, Jibrin said the committee assessed the agency’s 2025 budget implementation before examining the 2026 estimates.

He disclosed that the Customs Service exceeded its 2025 revenue target of N6.5 trillion, generating about N7.2 trillion, representing a performance of 110.53 per cent.

According to him, the agency’s performance would have been stronger but for the suspension of telecoms excise duty, healthcare production incentives and global trade disruptions from the Russia-Ukraine conflict, which reduced imports, especially wheat.

On expenditure, Jibrin said although the Customs Service had an approved budget of about N1.132 trillion in 2025, actual spending stood at N591 billion.

He attributed the shortfall in capital expenditure to delays in approvals by the Bureau of Public Procurement, BPP and the Federal Executive Council, FEC, resulting in several projects being rolled over to the 2026 fiscal year.

The committee chairman explained that the service’s projected N11.074 trillion revenue target for 2026 would be driven by expanded deployment of technology, improved revenue recovery mechanisms, and real-time audit systems.

According to him, the proposed N1.295 trillion expenditure consists of N421 billion for personnel costs, N307 billion for overheads and N565 billion for capital projects.

“The funding is expected to come mainly from the statutory four per cent Free on Board, FOB levy under the Nigerian Customs Service Act, 2023,” he said.

Based on its review, the committee recommended senate approval of both the proposed revenue target and expenditure estimates.