The Senate Committee on Customs has commended the ongoing reforms in the Nigeria Customs Service (NCS), praising President Bola Tinubu’s support for the Service as it surpassed its revenue target and sought legislative approval for its 2026 budget.
Chairman of the Senate Committee on Customs, Jibrin Echocho, gave the commendation during the defence of the NCS’s 2026 budget proposal before the committee. He said President Bola Tinubu had remained steadfast in backing the reform agenda despite the challenges associated with its implementation.
According to the senator, the reforms have strengthened revenue generation, boosted investor confidence and encouraged greater participation in the economy. He also applauded the President for approving a six-month extension of the Service’s mandate, describing the decision as an opportunity to consolidate ongoing reforms and achieve even greater results.
Echocho noted that sustained collaboration between the Senate Committee and the Nigeria Customs Service has enhanced revenue generation while accelerating infrastructure development to improve trade, connectivity and overall economic growth. He stressed that tax revenue remains one of the Federal Government’s major income sources and urged the Service to sustain its reform efforts throughout 2026.
Presenting the Service’s budget performance, the Comptroller-General of Customs Bashir Adewale Adeniyi disclosed that the NCS generated ₦7.27 trillion between January and May 2026, surpassing its ₦6.5 trillion target and recording a 10.2 per cent increase over the corresponding period in 2025 despite prevailing economic and policy challenges.
The Customs boss explained that the suspension of the proposed excise duty on telecommunications services, the non-implementation of the Green Tax and extensive duty waivers on essential imports including food, medical supplies, machinery and petroleum products reduced potential customs revenue as part of the Federal Government’s economic relief measures.
He revealed that imports covered by the waivers were valued at about ₦34.5 trillion, while only four of the eleven proposed excisable products were implemented during the review period, limiting expected excise collections.
The Comptroller-General also pointed to global developments, including the ongoing Russia–Ukraine conflict and tensions involving Iran, the United States and the Strait of Hormuz, as factors disrupting global supply chains and reducing cargo volumes, with implications for customs revenue.
Despite these challenges, he said the B’Odogwu Unified Customs Management System is now fully operational across the nation’s ports, significantly improving customs administration, trade facilitation and revenue collection.
He added that the Service is intensifying revenue recovery efforts, modernising customs operations and expanding capacity-building programmes with development partners, including the World Bank, the International Monetary Fund and the World Customs Organization.
The Comptroller-General further disclosed that the Service has proposed a 2026 revenue target of about ₦1.235 trillion, with projected earnings expected from Free-on-Board (FOB) imports, VAT-related collections and capital project receipts.
He also outlined a proposed personnel expenditure of ₦421.77 billion, overhead costs of ₦300.77 billion and capital expenditure of approximately ₦1.65 trillion to fund infrastructure projects, ICT development, equipment procurement, project completion and settlement of contractual obligations.
Reaffirming the Service’s commitment to accountability, transparency and legislative oversight, the Comptroller-General appealed to the Senate Committee to approve the proposed 2026 budget, expressing appreciation for its continued guidance and support.
