BY CHIJIOKE. CHARLES
The Chairman of the Senate Committee on Customs, Senator Jibrin Echuochuo, has praised President Bola Tinubu for backing the ongoing reforms in the Nigeria Customs Service (NCS), saying the administration’s commitment has strengthened revenue generation, improved investor confidence and stimulated economic activities.
Afrilensnews reports that the commendation came during the defence of the Nigeria Customs Service’s 2026 budget proposal before the Senate Committee on Customs.
Speaking at the session, Senator Jibrin Isah representing Kogi East district noted that President Tinubu remained resolute in supporting the reform agenda despite the challenges associated with its implementation.
He said the reforms have begun yielding measurable gains, including improved revenue performance, increased participation in the economy and stronger investor confidence.
The lawmaker also thanked the President for approving a six-month extension of the Service’s mandate, describing the decision as a strategic opportunity to consolidate the ongoing reforms and achieve even greater results.
According to him, sustained consultations between the Senate Committee and the Nigeria Customs Service have strengthened revenue mobilisation while accelerating infrastructure development aimed at improving connectivity, facilitating trade and delivering lasting benefits to Nigerians.
He stressed that tax revenue remains one of the Federal Government’s most important sources of income and called for sustained commitment to implementing key reforms and projects throughout the 2026 fiscal year.
Presenting the Service’s budget performance, the Comptroller-General of Customs disclosed that the NCS surpassed its revenue target during the review period, generating ₦7.27 trillion between January and May against a target of ₦6.5 trillion.
He explained that the performance represented a 10.2 per cent increase over the corresponding period in 2025 despite policy and economic headwinds.
According to the Customs boss, the suspension of the proposed excise duty on telecommunications services and the non-implementation of the Green Tax significantly affected projected revenue.
He added that duty waivers granted on essential imports, including food items, medical supplies, machinery and petroleum products, also reduced customs collections in support of the Federal Government’s economic relief measures.
He revealed that imports covered by the duty waivers were valued at approximately ₦34.5 trillion, while only four of the eleven proposed excisable products were implemented during the period, limiting expected excise revenue.
The Comptroller-General further noted that global developments, including the Russia-Ukraine conflict and rising tensions involving Iran, the United States and the Strait of Hormuz, have continued to disrupt global supply chains and reduce cargo volumes, with implications for customs revenue projections.
Despite these challenges, he said the Unified Customs Management System, B’Odogwu, is now fully operational across the nation’s ports, significantly improving customs administration, trade facilitation and revenue collection.
He added that the Service is intensifying revenue recovery efforts, modernising customs operations and expanding capacity-building programmes in collaboration with international development partners, including the World Bank, the International Monetary Fund (IMF) and the World Customs Organization (WCO).
The Comptroller-General also disclosed that the Service has proposed a 2026 revenue target of approximately ₦1.235 trillion, with projected earnings expected from Free-on-Board (FOB) imports, VAT-related collections and receipts from capital projects.
He outlined a proposed personnel expenditure of ₦421.77 billion, overhead costs of ₦300.77 billion and capital expenditure of about ₦1.65 trillion to fund infrastructure, ICT development, equipment procurement, project completion and the settlement of contractual obligations.
Reaffirming the Service’s commitment to accountability and transparency, the Comptroller-General assured the Committee that the Nigeria Customs Service would continue to subject its operations to legislative oversight while strengthening trade facilitation and revenue generation.
He appealed to the Senate Committee to approve the proposed 2026 budget, expressing appreciation for its continued guidance and support.
The strong revenue performance is expected to boost the Federal Government’s fiscal position and provide additional resources for infrastructure development and public services.
It also reinforces the Tinubu administration’s drive to improve non-oil revenue amid economic reforms and global trade uncertainties. However, analysts say sustaining the momentum will depend on continued reforms, stable trade policies and improvements in the global economic environment.
