The Nigeria Customs Service (NCS) has announced that it generated ₦7.277 trillion in revenue in 2025, surpassing its revenue target of ₦6.584 trillion by 10.24 per cent, while seeking the approval of the National Assembly for a ₦11.274 trillion revenue target and expenditure estimates for the 2026 fiscal year.
The Comptroller-General of Customs, Bashir Adewale Adeniyi, disclosed this on Monday during the agency’s 2026 budget defence before the House of Representatives Committee on Customs and Excise in Abuja.
Chairman of the committee, Rep. Leke Abejide, said the budget defence was part of the National Assembly’s constitutional duty to scrutinise the agency’s budget proposals before approval.
“It is not a long speech day. It is simply a day to carry out what Sections 88 and 89 of the 1999 Constitution mandate us to do, which is to scrutinise your budget proposal,” Abejide said, adding that the committee would submit its report to the House after completing its review.
Presenting the customs’ performance, Adeniyi attributed the improved revenue to enhanced operational efficiency despite fiscal incentives introduced by the Federal Government that reduced potential earnings from import duties.
He explained that duty waivers on healthcare products, compressed natural gas (CNG) vehicles, electric vehicles and import duty exemption certificates, as well as the suspension of excise duties on telecommunications services and other tax relief measures, affected revenue generation during the year.
The Comptroller-General disclosed that the service received ₦808.86 billion, representing about 71.4 per cent of its approved ₦1.132 trillion expenditure budget for 2025, blaming the shortfall on delays in implementing the funding framework introduced under the Nigeria Customs Service Act.
“The variance between what was approved and what we received resulted from the delayed implementation of the new funding structure,” Adeniyi said, noting that the service operated under the former seven per cent cost of collection model until August 2025 before transitioning to the new four per cent Free on Board (FOB) funding mechanism.
He further explained that concessionary fees, previously paid through the Comprehensive Import Supervision Scheme (CISS) account managed by the Federal Ministry of Finance and the Central Bank of Nigeria, are now paid directly by the Nigeria Customs Service under the new law.
Lawmakers sought clarification on the differences between the approved budget, actual releases and expenditure, as well as the operation of concessionary fees during the interactive session.
Looking ahead, Adeniyi said the service is targeting ₦11.274 trillion in revenue for 2026, comprising ₦5.542 trillion from federation revenue, ₦1.495 trillion from non-federation revenue, ₦2.973 trillion from import Value Added Tax (VAT), and ₦1.264 trillion from the four per cent FOB collection.
According to him, the projection will be driven by technology-based reforms, including the full deployment of the Unified Customs Management System, enhanced post-clearance audits, improved trade facilitation and stronger stakeholder engagement.
Adeniyi also announced reductions in import levies on vehicles under the 2026 fiscal policy, stating that the levy on used vehicles had been reduced from 15 per cent to five per cent, while that on new vehicles had been cut from 20 per cent to 10 per cent.
Abejide urged the Customs Service to adequately inform Nigerians about the reductions, saying, “I want the general public to know that the government is doing something good for them.”
Responding, Adeniyi acknowledged that while the reductions would lower costs for importers and consumers, they were expected to reduce Customs revenue.
He added that the measures formed part of broader fiscal policies approved by the Federal Ministry of Finance to support key sectors of the economy, including healthcare and transportation.
For the 2026 fiscal year, the Nigeria Customs Service proposed ₦421.7 billion for personnel costs, ₦307.77 billion for overhead expenditure and more than ₦620 billion for capital projects.
Adeniyi appealed to the National Assembly to approve the proposals, expressing confidence that the funding would strengthen the service’s capacity to boost revenue generation, facilitate legitimate trade and support national economic growth.
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