Senate Approves N11.07tn Customs Revenue Target, Clears N1.295tn 2026 Budget

The Senate has approved the Nigerian Customs Service (NCS) 2026 budget proposal, endorsing a revenue target of ₦11.074 trillion and an expenditure estimate of ₦1.295 trillion for the 2026 fiscal year.

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

Presenting the committee's report, Jibrin said lawmakers reviewed the Service's 2025 budget implementation before considering its proposed estimates for 2026.

He disclosed that although the Nigeria Customs Service was assigned a revenue target of ₦6.5 trillion for 2025, it generated ₦7.2 trillion, representing about 110.5 per cent of the target.

According to him, the revenue performance could have been even stronger but for several mitigating factors, including fiscal policy measures introduced to encourage local production and disruptions to global trade arising from the Russia-Ukraine conflict, which affected imports such as wheat.

On expenditure performance, Jibrin said the Service had an approved 2025 budget of ₦1.132 trillion but recorded actual spending of about ₦591 billion.

He attributed the low implementation rate to delays in obtaining approvals from relevant government agencies, including the Bureau of Public Procurement (BPP), explaining that projects not executed in 2025 would be rolled over into the 2026 fiscal year.

The committee chairman said the Nigeria Customs Service is projecting a revenue target of ₦11.074 trillion for 2026, driven by expanded deployment of technology, improved revenue recovery strategies, real-time systems audits and enhanced trade facilitation measures.

He explained that the proposed expenditure of ₦1.295 trillion comprises ₦421 billion for personnel costs, ₦307 billion for overhead expenses and ₦565 billion for capital projects.

According to him, a significant portion of the capital allocation will fund the completion of the Nigeria Customs Service's new headquarters and other ongoing infrastructure projects across the country.

Jibrin also noted that the Service's principal source of funding remains the 4 per cent Free-on-Board (FOB) value of imports, as provided under the Nigeria Customs Service Act.

"The committee, having considered the proposed 2026 budget, recommends that the Senate approve the proposed revenue target of ₦11,074,359,357,179 for the 2026 financial year and the proposed expenditure estimate of ₦1,295,409,849,722.19," he said.

Contributing to the debate, Deputy Senate President Barau Jibrin commended both the committee and the Comptroller-General of Customs for what he described as an outstanding performance in revenue generation.

He praised the Service for exceeding its 2025 revenue target while maintaining prudent spending.

"They were expected to generate ₦6.5 trillion but ended up collecting ₦7.2 trillion. That is a remarkable achievement worthy of commendation," Barau said.

He further observed that despite generating substantial revenue, the Service proposed spending only about ₦1.295 trillion in 2026, describing the expenditure profile as evidence of fiscal discipline.

Barau particularly applauded the decision to allocate a larger share of the budget to capital projects than overhead costs, saying the spending pattern demonstrated prudence and a commitment to strengthening the country's trade infrastructure.

"The officers and men of the Nigeria Customs Service are doing a wonderful job. They are showing prudence, patriotism and innovation by bringing more revenue into the coffers of the nation," he said.

Following consideration of the committee's recommendations, the Senate unanimously approved both the proposed ₦11.074 trillion revenue target and the ₦1.295 trillion expenditure estimate for the Nigeria Customs Service for the 2026 financial year.

Senate President Godswill Akpabio subsequently commended the committee for what he described as a thorough review of the budget proposal and congratulated the Nigeria Customs Service on securing legislative approval for its 2026 budget.