Senate approves N11.074trn revenue target for Customs in 2026

The Senate on Wednesday approved a revenue target of N11.074trillion for the Nigeria Customs Service (NCS) for the financial year ending on December 31, 2026.

The agency also got approval to spend N1.295trn on its operations and services during the same period.

The Senate passed the 2026 proposals after considering the report of the Committee on Customs and Excise Duties, chaired by Senator Isah Jibrin Echocho, on the budget.

Jibrin Echocho, while presenting the report, praised the leadership of the NCS, headed by Comptroller-General, Bashir Adewale Adeniyi, for surpassing the revenue target for 2025.

He explained that despite facing some challenges, including policy interventions, the agency surpassed the revenue target by N674.10billion.

According to Jibrin Echocho, while the NCS was given a target of N6.584trn, it generated N7.277trn, an increase of 10.53% above the target.

The Senate, on the basis of the performance, set the new 2026 revenue target of N11.074trn.

Speaking while defending the budget proposals before the committee earlier on Monday, the CG had disclosed that N4.4trn of the target had already been generated as of the close of June 2026.

He expressed hope that the balance would still be met by the last month of the year, barring setbacks. He listed the new excise regime on the reduction of vehicle import duties by 15% as one of the setbacks.

He also said the Iran-US crisis, which led to the blockade of the Strait of Hormuz for weeks, affected revenue haul because it reduced the number of cargoes discharged into Nigeria.

However, the CG expressed hope that as the restrictions eased off, cargo arrival and duty charges would rebound, leading ultimately to meeting the overall revenue target by December 2026.

“On the question of how far we have come, yes, we are on N4.4trn, though what we should have collected by the half way is N5.5trn”, he told the committee earlier.

On Wednesday, senators commended the agency for its revenue drive, encouraging the CG to do more.

Under the proposed N11trn for 2026, Federation Account line items will generate N5.54trn; Non-Federation Account, N1.49trn; Import VAT, N2.77trn; while Free on Board (F.O.B.) will generate N1.26trn.

The report noted, “To achieve the goals of the incoming fiscal years, 2026 to 2028, including the projected revenues for the said period, a good number of strategies have been considered. Amongst these are:

“Leveraging on Technology: the commencement of the Unified Customs Information System (UCIS), popularly known as B’Odogwu, is a robust automated platform that harnesses all Customs procedures. This measure is expected to enhance revenue collection efficiency and improve service delivery.

“Revenue Recovery Interventions; One of the key mechanisms adopted by the Service in line with global best practices is the use of Risk Management and Audit tools to curb tax evasions. Essentially, the Post Clearance Audit Unit (PCA) of the Service has undergone notable reforms to strengthen revenue recoveries.

“Real – Time Systems Audit: to validate all declarations made into the Customs Trade Portal, the Systems Audit Unit has been equipped with relevant professional techniques to enforce compliance, ensure accurate declaration of goods for appropriate payment of Customs taxes.

“Trade Facilitation: the adoption of Authorized Economic Operator (AEO) and Advanced Rulings programme will boost trade facilitation drive, enhance the release time of goods, improve the turnover time of import and export, and increase revenue generation as well;

“Anti-Smuggling: Pursuant to the Service’s initiative on effective border management and prevention of revenue leakages across the national borders, Geospatial technology has been adopted to provide effective surveillance. This is in addition to the existing Joint Border Patrol and purchases of other border manning machinery.”