By Nathaniel Zaccheaus, Abuja
The Senate on Monday approved the Nigeria Customs Service’s (NCS) ambitious N11.074 trillion revenue target for the 2026 fiscal year, throwing its weight behind the agency’s aggressive revenue drive despite mounting global trade disruptions, geopolitical tensions, and supply chain uncertainties that threaten government earnings.
Lawmakers also endorsed the Service’s proposed N1.235 trillion expenditure budget, expressing confidence that ongoing reforms, digital transformation and stronger anti-smuggling measures would enable Customs to remain one of the Federal Government’s biggest revenue lifelines.
The approval followed the defence of the 2026 budget by the Comptroller-General of Customs, Adewale Adeniyi, before the Senate Committee on Customs and Excise at the National Assembly.
Chairman of the committee, Senator Isah Jibrin, described the revenue projection as bold but attainable, urging the Customs management to sustain the momentum that enabled the agency to surpass its previous target despite difficult economic conditions.
He also applauded President Bola Tinubu for extending Adeniyi’s tenure, saying the decision would ensure continuity of reforms that have strengthened revenue generation, improved trade facilitation and intensified the fight against smuggling.
“Since assuming office, he has embarked on far-reaching reforms that have resulted in improved revenue generation, stronger anti-smuggling operations and better trade facilitation. The additional period granted to him will enable him to consolidate these reforms,” Jibrin said.
The senator observed that with rising infrastructure spending and increasing fiscal pressures, the Federal Government was relying more heavily on non-oil revenue sources, making Customs a critical pillar in financing national development.
“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,” he added.
Responding, Adeniyi thanked President Tinubu for the confidence reposed in him and commended the committee members for cutting short their legislative recess to consider the agency’s budget proposal.
He reaffirmed the Service’s commitment to exceeding expectations despite emerging global economic challenges.
Reviewing Customs’ performance, the Comptroller-General disclosed that although the National Assembly approved a 2025 revenue target of N6.584 trillion, the agency realised N7.277 trillion, exceeding the benchmark by N674.1 billion, or 10.24 per cent.
He attributed the impressive performance to ongoing institutional reforms, improved compliance, stronger enforcement and enhanced automation across Customs operations.
However, Adeniyi noted that revenue growth was achieved despite several government policy interventions that reduced Customs collections.
These included import duty waivers on compressed natural gas (CNG) vehicles, electric vehicles, healthcare equipment, and industrial raw materials; the suspension of excise duty on telecommunications services; the delayed implementation of the Green Tax; and extensive duty exemption certificates issued by the Federal Government.
He added that external shocks, including the lingering effects of the Russia-Ukraine conflict, also disrupted imports of strategic commodities and affected revenue inflows.
Despite outperforming its revenue target, the Customs chief disclosed that the Service received only N808.86 billion, representing 71.46 per cent of its approved N1.132 trillion expenditure budget for 2025.
For the 2026 fiscal year, Adeniyi projected total revenue of N11.074 trillion, comprising N5.542 trillion from Federation Account collections, N1.491 trillion from non-Federation revenue, N2.773 trillion from Import VAT and N1.266 trillion from the four per cent Free-on-Board (FOB) cost of collection.
He said the projection was anchored on ongoing reforms, including the successful deployment of the indigenous Unified Customs Information System (UCIS), code-named B’Odogwu, intelligence-led anti-smuggling operations, enhanced post-clearance audits and improved trade facilitation initiatives.
“Our technology platform is now stable and fully operational. It has strengthened automation across our commands, improved compliance and enhanced revenue collection,” Adeniyi said.
He disclosed that the Presidential Enabling Business Environment Council (PEBEC) recently recognised the Nigeria Customs Service as the country’s most improved government agency in trade facilitation and ease of doing business.
Despite the optimistic projections, the Customs boss warned that escalating geopolitical tensions were beginning to weigh heavily on international trade and government revenue.
He revealed that the Service generated N4.043 trillion in the first half of 2026 against a projected N5.5 trillion, blaming the shortfall on disruptions to global shipping caused by the Middle East crisis.
“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 expect collections to improve as the situation stabilises,” he said.
Adeniyi also briefed lawmakers on Nigeria’s implementation of the African Continental Free Trade Area (AfCFTA), disclosing that Customs was strengthening collaboration with the AfCFTA Secretariat, the African Development Bank and neighbouring customs administrations to facilitate cross-border trade.
He announced plans for Nigerian Customs officials to undertake a study visit to Zimbabwe to learn from its joint border management system with South Africa and replicate similar models at the Seme Border and other strategic entry points.
During the budget review, senators sought clarification over the allocation of more than N210 billion under “Financial and Miscellaneous Services.”
Explaining the expenditure, Adeniyi said the classification followed the Federal Government’s approved Chart of Accounts and covered 84 statutory expenditure items, including recruitment, staff training and promotion, overseas missions, laboratory services, publicity, advocacy programmes, annual conferences and sports development.
Following the explanations, the Senate Committee unanimously approved both the N11.074 trillion revenue target and the N1.235 trillion expenditure proposal for the 2026 fiscal year.
Congratulating the Comptroller-General on the extension of his tenure, Senator Jibrin urged the Customs leadership to sustain its reform agenda and surpass the new revenue target.
“You have demonstrated capacity and delivered impressive results. We encourage you and your team to work even harder so that the Service can meet and even surpass its revenue target for 2026 in the interest of the nation’s economy,” he said.
