By Oluwakemi Kindness
The Nigeria Customs Service (NCS) says import duty waivers, VAT exemptions and other fiscal incentives granted by the Federal Government significantly reduced its revenue collection in 2025, despite the Service exceeding its annual revenue target.
Comptroller-General of Customs, Adewale Adeniyi, disclosed this on Monday while defending the Service’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise.
Adeniyi revealed that imports valued at about ₦34.53 trillion benefited from various concessions, including Import Duty Exemption Certificates (IDECs), VAT exemptions and incentives under Schedule II of the Common External Tariff (CET), resulting in substantial revenue forgone.
According to him, the incentives, designed to support critical sectors of the economy, significantly reduced the amount of revenue collectible by the Service.
“In 2025, imports with a total value of about ₦34.53 trillion benefited from various exemptions and waivers under the Import Duty Exemption Certificate, VAT Order and Schedule II of the CET,” Adeniyi said.
He also disclosed that only four of the eleven products designated for excise duty were subject to the levy in 2025, leading to an estimated 28.6 per cent shortfall in projected excise revenue.
The Customs boss attributed the revenue gap to several government policy measures, including the continued suspension of excise duty on telecommunications services, delayed implementation of the Green Tax, healthcare-related fiscal incentives, and duty concessions for compressed natural gas (CNG) and electric vehicles.
Despite these challenges, Adeniyi said the Service generated ₦7.27 trillion between January and December 2025, surpassing its revenue target of ₦6.58 trillion by 10.24 per cent.
Looking ahead, he said the Service has a set revenue target of ₦12.27 trillion for 2026.
The projection comprises ₦5.54 trillion from import duty, ₦2.97 trillion from import VAT, ₦1.49 trillion from excise duty and ₦1.26 trillion from the four per cent Free-on-Board (FOB) collection.
Adeniyi said the Service plans to achieve the target through expanded automation, deployment of the Unified Customs Management System, enhanced post-clearance audits, wider implementation of the Authorised Economic Operator programme, Advance Ruling, intelligence-driven enforcement and stronger collaboration with relevant government agencies.
Chairman of the House Committee on Customs and Excise, Leke Abejide, said the budget defence was part of the National Assembly’s constitutional oversight responsibility under Sections 88 and 89 of the 1999 Constitution.
He explained that the committee would scrutinise the proposal before presenting its report to the House for consideration and approval.
Abejide also commended the Nigeria Customs Service for its performance and commitment to revenue generation over the years.
