Senate approves customs’ N11.074trn 2026 revenue projection

…Adeniyi cites Middle East tensions, supply chain disruptions for revenue shortfall

The Senate Committee on Customs and Excise, on Monday, approved the Nigeria Customs Service’s (NCS) proposed N11.074 trillion revenue target and N1.235 trillion expenditure estimates for the 2026 fiscal year after the agency acknowledged that geopolitical tensions and disruptions to global trade could affect revenue performance.

Defending the 2026 budget before the committee at the National Assembly, Adewale Adeniyi, the Comptroller-General of Customs, said the Service was projecting higher revenue despite a difficult international trading environment marked by supply chain disruptions and reduced cargo traffic into Nigerian ports.

He disclosed that Customs generated N4.043 trillion in the first half of 2026 against a projected N5.5 trillion, attributing the shortfall largely to the crisis in the Middle East, particularly around the Strait of Hormuz.

He stated, “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 are optimistic that as the situation continues to de-escalate, international trade will recover.

“June recorded our highest monthly revenue this year, and we expect that trend to continue,” Adeniyi said.

Despite the setback, the Customs boss said the Service remained confident of achieving its N11.074 trillion revenue target for 2026.

The projection comprises N5.542 trillion from Federation Account revenue, N1.491 trillion from non-Federation Account collections, 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 revenue forecast was anchored on ongoing reforms, including the deployment of the indigenous Unified Customs Information System (UCIS), codenamed B’Odogwu, enhanced post-clearance audit operations, intelligence-led anti-smuggling efforts and expanded trade facilitation measures.

“Our technology platform is now stable and fully operational. It has strengthened automation across our commands, improved compliance and enhanced revenue collection,” he said.

Adeniyi also informed lawmakers that the Presidential Enabling Business Environment Council (PEBEC) recently rated the Nigeria Customs Service as the country’s most improved government agency in trade facilitation and ease of doing business.

Providing a review of the agency’s 2025 performance, he said Customs outperformed its approved revenue target of N6.584 trillion, generating N7.277 trillion, an excess of N674.1 billion, representing 10.24% above target.

According to him, this performance was recorded despite fiscal policy measures that reduced potential collections, including the suspension of excise duty on telecommunications services, delayed implementation of the Green Tax, import duty waivers on compressed natural gas (CNG) and electric vehicles, healthcare equipment and industrial raw materials, as well as import duty exemption certificates granted by the Federal Government.

He added that the prolonged Russia-Ukraine conflict also disrupted imports of strategic commodities such as wheat, affecting Customs revenue.

On expenditure, Adeniyi disclosed that although the Service had an approved 2025 budget of N1.132 trillion, it received N808.86 billion, representing 71.46% of the appropriation.

The Comptroller-General also briefed senators on Nigeria’s implementation of the African Continental Free Trade Area (AfCFTA), saying Customs is working with the AfCFTA Secretariat, the African Development Bank and neighbouring customs administrations to deepen regional trade.

He disclosed that officials of the Service would soon visit Zimbabwe to study the joint border management model between Zimbabwe and South Africa with a view to replicating similar arrangements at the Seme border and other strategic border posts.

During the budget defence, lawmakers sought clarification on over N210 billion provided under the budget heading “Financial and Miscellaneous Services.”

Responding, Adeniyi explained that the classification followed the Federal Government’s official Chart of Accounts issued by the Office of the Accountant-General of the Federation.

He said the category covered 84 approved expenditure items, including publicity, overseas missions, sports development, annual conferences, recruitment, staff promotions, advocacy programmes, laboratory services and other statutory administrative obligations.

“Every expenditure item is clearly itemised in the detailed budget documents submitted to the committee. What appears in the summary simply reflects the classification provided under the government’s Chart of Accounts,” he explained.

Satisfied with the explanations, the committee unanimously approved the proposed N11.074 trillion revenue target and N1.235 trillion expenditure estimate for the 2026 fiscal year.

Earlier, Adeniyi thanked President Bola Tinubu for extending his tenure as Comptroller-General and expressed appreciation to members of the committee for reconvening during their legislative recess to consider the budget proposal.

“We appreciate this sacrifice and do not take it for granted.

“We have always enjoyed the guidance and support of this distinguished committee, and we look forward to sustaining that cordial relationship,” he said.

Isah Jibrin, the Chairman of the Senate Committee on Customs and Excise, described the proposed revenue target as ambitious but achievable, urging the agency to intensify efforts to meet the projection.

He also commended Tinubu for extending Adeniyi’s tenure, saying the decision would allow the Customs Service to consolidate the reforms already underway.

“I want to appreciate the President of the Federal Republic of Nigeria for extending the service of the Comptroller-General of Customs. 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.

“I believe the additional period granted to him will enable him to fully consolidate these reforms and place the Nigeria Customs Service on a sustainable path,” Jibrin said.

He added that with the Federal Government’s growing infrastructure commitments, Customs remained one of Nigeria’s most strategic revenue-generating agencies.

“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.”

Before adjourning the session, Jibrin congratulated the Comptroller-General on his tenure extension and encouraged the agency to sustain its reform agenda.

“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.