The Senate on Wednesday approved the Nigerian Customs Service’s proposed 2026 budget, endorsing a revenue target of ₦11.074 trillion and an expenditure estimate of ₦1.295 trillion for the next fiscal year.
The approval followed the adoption of the report presented by the Senate Committee on Customs, Excise and Tariffs during plenary.
Presenting the report, Chairman of the committee, Senator Isah Jibrin, said the panel reviewed the agency’s 2025 budget performance before recommending approval of its 2026 financial estimates.
He disclosed that the Customs Service surpassed its 2025 revenue target of ₦6.5 trillion by generating approximately ₦7.2 trillion, representing a performance of 110.53 per cent.
According to Jibrin, the agency’s revenue would have been higher but for the suspension of excise duty on telecommunications services, policies encouraging local production of healthcare products and disruptions to global trade caused by the Russia-Ukraine conflict.
The committee also reported that while Customs had an approved 2025 budget of about ₦1.132 trillion, only ₦591 billion had been utilised.
The lawmaker attributed the low capital expenditure to delays in project approvals by the Bureau of Public Procurement and the Federal Executive Council, forcing several projects to be deferred to the 2026 fiscal year.
He explained that the service intends to achieve its ₦11.074 trillion revenue target through expanded deployment of technology, stronger revenue recovery measures, real-time audit systems, improved trade facilitation and intensified anti-smuggling operations.
The approved expenditure of ₦1.295 trillion comprises ₦421 billion for personnel costs, ₦307 billion for overheads and ₦565 billion for capital projects. Funding for the budget is expected to come largely from the four per cent Free on Board levy provided under the Nigerian Customs Service Act, 2023.
During debate on the report, Deputy Senate President Barau Jibrin commended the Customs Service for exceeding its revenue target and praised the agency’s leadership for improving revenue generation.
He said the performance justified President Bola Tinubu’s decision to extend the tenure of the Comptroller-General of Customs.
Barau also described the agency’s proposed revenue target for 2026 as a reflection of confidence in ongoing reforms, noting that the service planned to generate more than ₦11 trillion while spending ₦1.295 trillion on its operations.
Following the debate, Senate President Godswill Akpabio put the committee’s recommendations to a voice vote, with lawmakers unanimously approving both the proposed revenue target and expenditure estimates.
Akpabio commended the Senate committee for its scrutiny of the proposal and expressed confidence that the approved budget would strengthen the operations of the Nigerian Customs Service and enhance revenue generation for the Federal Government.
The approval comes as the National Assembly continues consideration of the 2026 budgets of key revenue-generating agencies as part of efforts to boost non-oil revenue and reduce reliance on borrowing.
