The Senate approved the Nigerian Customs Service’s 2026 budget because lawmakers believe the agency can deliver more revenue for the Federal Government.
The approved budget gives Customs a revenue target of ₦11.074 trillion and allows the agency to spend ₦1.295 trillion in the 2026 fiscal year.
The decision followed the adoption of a report by the Senate Committee on Customs, Excise and Tariffs during plenary.
Customs Beat Its 2025 Revenue Target
The strongest reason behind the approval was Customs’ 2025 revenue performance.
The agency had a revenue target of ₦6.5 trillion in 2025. It generated about ₦7.2 trillion.
That means Customs achieved 110.53% of its target.
This performance gave lawmakers more confidence in the agency’s new ₦11.074 trillion target for 2026.
Senate Saw Customs as a Strong Revenue Agency
Nigeria needs more non-oil revenue to fund its budget.
Oil income remains uncertain because of crude theft, production gaps and global price changes. This has made agencies like Customs more important to government finances.
By approving the Customs budget, the Senate backed one of the government’s strongest revenue-generating institutions.
Lawmakers expect Customs to help reduce pressure on borrowing and support budget implementation.
Customs Plans to Use Technology
The Senate also approved the budget because Customs presented a plan to raise revenue through technology.
The agency plans to deploy more digital tools, improve real-time audits and strengthen revenue recovery systems.
These tools can help Customs track imports better, reduce leakages and detect underpayment faster.
Customs also plans to improve trade facilitation and strengthen anti-smuggling operations.
Capital Projects Were Delayed in 2025
The Senate also considered Customs’ spending record.
Although the agency had an approved budget of about ₦1.132 trillion in 2025, it spent only ₦591 billion.
The committee said delays from the Bureau of Public Procurement and the Federal Executive Council slowed some capital projects.
Because of those delays, Customs moved several projects into the 2026 budget.
This helped explain why the agency requested ₦1.295 trillion for 2026.
The Spending Plan Focuses on Operations and Projects
The approved ₦1.295 trillion spending plan covers personnel, overheads and capital projects.
Customs will spend ₦421 billion on personnel costs. It will spend ₦307 billion on overheads.
The agency also plans to spend ₦565 billion on capital projects.
This structure helped lawmakers defend the approval because capital spending received the largest share.
Senate Praised Customs’ Fiscal Discipline
Deputy Senate President Barau Jibrin praised the agency for generating more than its target while spending less than its approved budget.
He said Customs showed strong fiscal discipline by proposing to generate more than ₦11 trillion while spending about ₦1.3 trillion.
This argument mattered during the debate.
Lawmakers saw the agency as one that could bring in more money than it would spend.
Customs Will Fund the Budget From Its Levy
The Senate also backed the budget because Customs has a clear funding source.
The agency will fund its operations mainly from the statutory 4% Free on Board levy under the Nigerian Customs Service Act, 2023.
This means the spending plan does not depend entirely on regular government releases.
That funding structure made the budget easier for lawmakers to approve.
Why the Approval Matters
The approval gives Customs a bigger role in Nigeria’s 2026 fiscal plan.
If the agency meets its ₦11.074 trillion target, it will strengthen federal revenue and support government spending.
But the target also raises pressure on Customs.
The agency must increase collections without slowing trade or hurting businesses that depend on imports.
Expert View
The Senate approved the money because Customs gave lawmakers three strong reasons.
First, the agency beat its 2025 target. Second, it presented a clear plan to raise more revenue. Third, it showed that most of its new spending would support operations and capital projects.
But Customs must now prove that the higher target is realistic.
The agency needs better technology, faster port processes and stronger anti-smuggling enforcement. It must also avoid excessive charges that could raise business costs.
The real test is balance. Customs must collect more revenue while keeping trade efficient.
Final Take
The Senate did not approve Customs’ budget only because the agency asked for more money.
Lawmakers approved it because Customs had already delivered strong revenue results and promised deeper reforms.
The ₦11.074 trillion target now turns Customs into one of Nigeria’s most important revenue agencies for 2026.
If it succeeds, the Federal Government gains more fiscal room. If it fails, the target may expose the limits of Nigeria’s non-oil revenue drive.
