Customs Surpasses 2025 Revenue Target, Sets ₦11.07tn Goal for 2026

The Nigeria Customs Service successfully exceeded its 2025 annual revenue target by 10.24 percent, collecting a total of ₦7.28 trillion. Comptroller-General of Customs, Adewale Adeniyi, announced the achievement on Monday while presenting the agency’s 2025 budget performance and 2026 proposal to the House of Representatives Committee on Customs and Excise.

The service surpassed its initial target of ₦6.58 trillion by ₦696 billion despite significant fiscal challenges, including government-approved tax waivers and incentives designed to stimulate economic growth. Adeniyi noted that the performance was driven by sustained reforms in revenue administration, increased deployment of automation, and enhanced trade facilitation.

During the budget defense, the Comptroller-General highlighted that the revenue collection occurred alongside substantial fiscal interventions. These included duty exemptions for pharmaceutical products, military equipment, and the Presidential Compressed Natural Gas initiative, as well as the ongoing suspension of excise duties on telecommunications services. Data presented to the committee indicated that imports valued at ₦34.53 trillion received various duty exemptions throughout the year. Additionally, geopolitical instability and the limited scope of goods currently subject to excise duty were cited as constraints that impacted the final collection figures.

Addressing questions regarding expenditure, Adeniyi clarified discrepancies between the approved 2025 budget and actual implementation. He explained that the service transitioned from an old seven percent “Cost of Collection” funding model to a new four percent “Free-on-Board” mechanism in August 2025. This change, mandated by the new Nigeria Customs Service Act, shifted the responsibility for paying concessionaire fees directly to the agency.

Looking ahead to 2026, the service has set an ambitious revenue target of ₦11.07 trillion. To meet this, the NCS plans to deepen the use of its unified automated management system and strengthen post-clearance audit operations. However, the agency signaled that recent government policy decisions might impact future collections. Effective May 1, 2026, import duties on used vehicles were reduced from 15 percent to five percent, and duties on brand-new vehicles were lowered from 20 percent to 10 percent. While these reductions are intended to lower costs for Nigerians, officials noted that they could moderate revenue growth.

The NCS budget proposal for 2026 includes ₦421.70 billion for personnel costs, ₦307.77 billion for overheads, and ₦565.93 billion for capital projects, which will prioritize the acquisition of operational equipment and the expansion of digital infrastructure.