The Comptroller-General of the Nigerian Customs Service, NCS, CG Bashir Adewale Adeniyi, on Monday said that the Service exceeded its 2025 revenue target as it generated N7.277 trillion as against its target of N6.584 trillion, representing 10.24 per cent,
CG Adeniyi disclosed this when the Service appeared before the House Committee on Customs and Excise on its proposed N11.274 trillion 2026 budget.
While presenting the executive summary of the budget, CG Adeniyi attributed the strong revenue performance to improved operational efficiency despite several government fiscal incentives that reduced customs earnings.
Adeniyi pointed out that while Customs collected N7.277 trillion between January and December 2025, several government policies, including duty waivers on healthcare products, compressed natural gas (CNG) vehicles, electric vehicles, and import duty exemption certificates, had significant revenue implications.
According to him, the suspension of excise duties on telecommunications services and the continued implementation of various tax relief measures also affected collections.
He further disclosed that the Service received only N808.86 billion, representing about 71.4 per cent of its approved N1.132 trillion expenditure budget for 2025 due to delays in implementing the funding framework introduced under the Nigeria Customs Service Act.
The Customs boss explained that the agency relied on the old seven per cent cost-of-collection model until August 2025 before transitioning to the new four per cent Free-on-Board (FOB) funding mechanism.
According to him, “the variance between what was approved and what we received resulted from the delayed implementation of the new funding structure,” he said.
He also clarified that concessionary fees, which were previously paid through the Comprehensive Import Supervision Scheme (CISS) account managed by the Ministry of Finance and the Central Bank of Nigeria, are now paid directly by the Customs Service under the new Act.
During the budget defence, lawmakers sought clarification on discrepancies between the approved budget, actual receipts and expenditure figures, as well as the nature of concessionary fees.
However, the committee Chairman, Hon Leke Abejide, explained that the National Assembly approved the N1.132 trillion as projected expenditure, while the actual amount released stood at N808.86 billion, urging the Comptroller-General to clarify how the available funds were utilised.
Looking ahead, the Customs Service projected a revenue target of N11.274 trillion for 2026. Adeniyi said the projection comprises N5.542 trillion from federation accounts, N1.495 trillion from non-federation revenue, N2.973 trillion from import Value Added Tax (VAT), and N1.264 trillion from the four per cent FOB collection.
He said the Service intended to achieve the target through technology-driven reforms, including the full deployment of the Unified Customs Management System, improved post-clearance audit mechanisms, enhanced trade facilitation programmes and stronger stakeholder engagement.
The NCS boss also announced reductions in import levies on vehicles under the 2026 fiscal policy.
According to him, the levy on used vehicles has been reduced from 15 per cent to five per cent, while that on new vehicles has been cut from 20 per cent to 10 per cent.
The announcement prompted the committee chairman to ask that the information be clearly communicated to Nigerians, saying, ” I want the general public to know that the government is doing something good for them”
Adeniyi, however, acknowledged that while the reductions would ease the burden on importers and consumers, they were expected to reduce Customs’ revenue.
He stressed that fiscal policy decisions were implemented under the supervision of the Federal Ministry of Finance and were designed to support broader economic objectives, including healthcare delivery, transportation through the CNG initiative, and other strategic interventions introduced by the Federal Government.
For the 2026 fiscal year, the Customs Service proposed personnel costs of N421.7 billion, overhead expenditure of N307.77 billion, and capital expenditure exceeding N620 billion, with priority given to completing ongoing projects, infrastructure development, staff welfare and operational efficiency.
The Comptroller-General appealed to lawmakers to approve the budget, expressing confidence that the proposed funding would strengthen Customs’ capacity to improve revenue generation, facilitate legitimate trade and support Nigeria’s economic growth.
Speaking earlier, the Chairman of the Committee, Hon Abejide, said that the budget defence the Committee was in fulfilment of the National Assembly’s constitutional responsibility to scrutinise the agency’s budget estimates.
According to him, “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,” the chairman said, adding that after the committee’s review, its report would be forwarded to the House for consideration and approval.