The Senate Committee on Customs has commended ongoing reforms in the Nigeria Customs Service (NCS) following a significant revenue performance, as the agency surpassed its target and presented its 2026 budget proposal for approval.
Chairman of the Committee, Senator Jibrin Echuochuo, praised President Bola Tinubu for sustaining support for the reforms, noting that the administration’s patience and commitment have strengthened revenue generation, boosted investor confidence and stimulated economic activity. He spoke during the defence of the NCS 2026 budget proposal before the Committee.
Echuochuo highlighted that despite initial challenges, the reforms have delivered measurable outcomes, including increased revenue and broader economic participation. He also lauded the President’s approval of a six-month extension of the Service’s reform mandate, describing it as a strategic move to consolidate ongoing gains.
The lawmaker added that sustained collaboration between the Committee and the NCS has contributed to improved revenue performance and accelerated infrastructure development to enhance trade facilitation and national connectivity. He emphasised the importance of tax revenue as a key source of government income and called for continued commitment to reform implementation in 2026.
Presenting the Service’s performance, the Comptroller-General of Customs disclosed that the NCS generated ₦7.27 trillion between January and May, exceeding its target of ₦6.5 trillion. He noted that this represents a 10.2 per cent increase compared to the same period in 2025, despite prevailing economic and policy challenges.
The Customs boss explained that the suspension of excise duty on telecommunications services, the non-implementation of the Green Tax, and duty waivers on essential imports impacted projected revenue. He said imports granted waivers—covering food, medical supplies, machinery and petroleum products—were valued at about ₦34.5 trillion.
He further noted that only four of the eleven proposed excisable products were implemented, limiting anticipated earnings. Global disruptions, including the Russia–Ukraine conflict and tensions involving Iran, the United States and the Strait of Hormuz, were also cited as factors affecting cargo volumes and revenue projections.
Despite the challenges, the Comptroller-General said the Unified Customs Management System, known as B’Odogwu, is now fully operational across ports, improving efficiency in customs administration, trade facilitation and revenue collection.
He added that the Service is strengthening revenue recovery, modernising operations and expanding capacity-building initiatives in partnership with international organisations such as the World Bank, International Monetary Fund (IMF) and the World Customs Organization (WCO).
On the 2026 proposal, the Comptroller-General disclosed that the Service is projecting a revenue target of about ₦1.235 trillion, with expected income from Free-on-Board imports, VAT-related collections and capital receipts.
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He outlined proposed expenditures, including ₦421.77 billion for personnel costs, ₦300.77 billion for overhead, and about ₦1.65 trillion for capital projects covering infrastructure, ICT upgrades, equipment procurement and settlement of contractual obligations.
Reaffirming commitment to transparency and accountability, the Customs boss assured lawmakers of continued compliance with legislative oversight while enhancing trade facilitation and revenue generation. He urged the Committee to approve the 2026 budget, appreciating its consistent support and guidance.
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