By James Isaac,Abuja
The Nigeria Customs Service (NCS) came under intense scrutiny on Monday, June 24, 2025, as it presented its proposed ₦6.584 trillion revenue target and ₦1.132 trillion expenditure plan for the 2025 fiscal year before the Senate Committee on Customs and Excise.
While the Service was commended for surpassing its 2024 revenue target, senators expressed deep concern over what they described as unjustifiable spikes in expenditure and a lack of ambition in projected revenue growth.
According to the budget proposal, the NCS aimed to generate ₦6.584 trillion in 2025, broken down into ₦3.835 trillion from the Federation Account, ₦1.081 trillion from the Non-Federation Account, and ₦1.650 trillion from Import VAT.
On the expenditure side, ₦1.132 trillion has been proposed, to be sourced from 4% Free On Board (FOB) funding, 2% Nigeria Trade Summary (NTS) share, and allocations for capital projects. The breakdown of the proposed spending includes ₦247.16 billion for personnel costs, ₦239.97 billion for overhead, and ₦645.42 billion for capital projects.
However, a deeper analysis of the figures revealed notable allocations for salaries, pensions, the National Health Insurance Scheme (NHIS), and a controversial ₦169 billion tagged as “miscellaneous” under overheads a line item that raised eyebrows among the lawmakers.
Responding to the queries, Deputy Comptroller General of Customs, Jibo Bello, clarified that revenue targets are not set by the Service but by a federal committee through the Medium-Term Revenue Framework (MTRF), based on historical performance.
“The 2024 revenue target increased by 21.2%, not 2% as previously suggested, He added that the increase in expenditure is driven by legislative appropriations and delayed disbursements from the 2024 budget”Bello said.
He explained further: “Although ₦706 billion was approved for 2024, Customs only received ₦290 billion due to the suspension of the 4% FOB funding mechanism as enshrined in the new Customs Act. The 2025 budget is based on restored FOB funding already appropriated by Parliament.”
He also attributed the jump in personnel costs to salary reviews and statutory contributions to pension, NHIS, NSITF, and ITF.
Nonetheless, senators remained unsatisfied with the Service’s modest 7% revenue growth projection, juxtaposed with a sharp 60% increase in overall spending.
“You collected ₦6 trillion in 2024, yet you’re projecting only a marginal increase for 2025. That’s not acceptable,” one lawmaker said. “Meanwhile, your expenditure is jumping from ₦706 billion to ₦1.1 trillion. How do you justify that?”
The personnel budget in particular came under fire for rising from ₦94 billion to ₦247 billion despite the addition of just 3,927 new recruits to an existing workforce of 16,245.
Another senator criticised the recurring high overheads, especially costs for routine items like computers, vehicles, fuel, and travels.
“What’s the lifespan of your computers? Every year you procure new ones, pushing your overhead through the roof,” a visibly irritated senator queried.
Beyond the numbers, senators urged the NCS to advocate for trade-friendly reforms. One senator referenced the declining volume of imports through Lagos ports due to surcharges on used vehicle imports, which he said had pushed importers toward Benin Republic.
“If Customs wants to increase revenue, it must work with the National Assembly to review some of these policies,” the senator argued.
The lawmakers also flagged the ₦169 billion listed as “financial miscellaneous services,” describing it as vague and lacking transparency.
The committee further criticised the revenue model which imposes hard targets on the NCS. “When you cap their targets, they hit the mark and stop. If allowed to collect freely while retaining their 7% cost of collection, they’ll be more motivated,” one senator observed.
The Senate Committee is expected to continue its budget review in the coming days, focusing on ensuring cost-efficiency, promoting internal reforms, and driving realistic but ambitious revenue projections.
As one lawmaker summed up, “The Customs Service has the potential to do more but this budget must reflect that ambition.”
