The Nigeria Customs Service has disclosed that import duty waivers and exemptions granted on goods valued at more than ₦34 trillion significantly reduced the revenue it could have generated in 2025, despite surpassing its annual collection target.
Comptroller-General of Customs, Bashir Adewale Adeniyi, made the disclosure while presenting the Service's 2025 budget performance and 2026 budget proposal before the House of Representatives Committee on Customs and Excise.
According to Adeniyi, imports worth about ₦34.53 trillion benefited from various government-approved waivers and exemptions during the year. These concessions covered a range of strategic imports, including military procurements, pharmaceutical and healthcare products, as well as incentives under the Presidential Compressed Natural Gas initiative for CNG-powered and electric vehicles.
He also explained that the continued suspension of excise duties on telecommunications services and the non-implementation of some approved tax measures further limited Customs' revenue generation during the year. In addition, only a limited number of products remained subject to excise duty in 2025.
Despite these challenges, the Customs Service exceeded its revenue target, collecting ₦7.277 trillion against a target of ₦6.584 trillion, representing a performance that was 10.24 per cent above expectations. Adeniyi described the result as evidence that ongoing reforms within the Service had strengthened revenue administration even in the face of fiscal incentives designed to stimulate economic growth.
The Customs boss further noted that international developments also affected revenue collection. He said heightened tensions in the Middle East disrupted the importation of key commodities, particularly wheat, thereby affecting customs receipts.
On expenditure, Adeniyi explained that although the Service received an approved budget of ₦1.132 trillion for the 2025 financial year, only ₦808.86 billion, representing 71.42 per cent, was made available for implementation. He attributed the funding gap to the transition from the previous seven per cent Cost of Collection arrangement to the new four per cent Free-on-Board Cost of Collection framework under the Nigeria Customs Service Act.
He added that from January to July 2025, the Service continued operating under the old funding model before the new arrangement took effect in August, creating a difference between the approved budget and the actual funds received. Adeniyi commended the National Assembly for supporting the transition to the new funding structure.
During the budget defence, members of the House Committee sought clarification on the figures presented, particularly the distinction between the approved budget and actual receipts, as well as concessionaire fees. Adeniyi explained that concessionaire fees, previously settled through the Comprehensive Import Supervision Scheme account, had become the responsibility of the Nigeria Customs Service under the new Act and are now funded from the four per cent Free-on-Board Cost of Collection. Following the explanation, committee members expressed satisfaction with the presentation before proceeding with deliberations on the Service's 2026 budget proposal.
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