The Senate on Tuesday raised red flags over the Nigerian Customs Service’s proposed ₦1.13 trillion 2025 budget, warning that the agency was drifting into a pattern of bloated spending, repeated project rollovers, and possible illegal revenue deductions.
While the budget was eventually passed, Deputy Senate President Jibrin Barau, who presided, ordered the Committee on Customs to commence monthly reporting to the Senate leadership, citing the agency’s strategic importance to Nigeria’s revenue base and fiscal stability.
“We cannot toy with Customs. That’s the heart of our revenue,” Akpabio said. “Your oversight must be tighter. We want monthly figures. We want clarity.”
Senators were united in criticizing the sharp jump in Customs’ expenditure projections — rising from ₦706 billion in 2024 (of which only ₦322 billion was utilized) to over ₦1.1 trillion in 2025, with personnel and overhead costs nearly tripling.
“You budgeted ₦94 billion for personnel in 2024, and now it’s ₦247 billion? Are you hiring a small army?” queried Senator Tokunbo Abiru (Lagos East). “Where is the justification for a threefold jump in just one year?”
Overhead spending also soared from ₦56 billion to ₦239 billion — a 326% increase. Lawmakers demanded full justification for the figures, warning that in a time of national belt-tightening, such projections were not just excessive, but potentially reckless.
At the core of the Senate’s concern was Customs’ unilateral shift from a 4% FOB (Free on Board) cost of collection to a 7% gross revenue deduction, a change that violates the Customs Act passed by the National Assembly.
“They changed the rate without coming back to Parliament,” Senator Danjuma Goje (Gombe Central) said. “That’s illegal. They must account for it.”
Committee Chairman Senator Jibrin Isah acknowledged the breach but blamed delays in reactivating the FOB framework. He said the committee would meet the Finance Minister for clarification.
“Once the FOB collection resumes, the 7% deduction ends,” he said.
Senators also queried the recurring appearance of “ongoing projects” in Customs budgets, accusing the agency of recycling items already appropriated and funded.
“Why are projects from 2023 and 2024 still appearing as new entries in 2025?” asked Senator Abdul Ningi. “This is wasteful and dishonest.”
Senator Mutari Mohammed added that nearly ₦300 billion in taxpayer funds was being misclassified under repeated project headings, calling for a forensic review before further appropriations.
Several senators, including Senator Olamilekan Adeola, questioned Customs’ continued reliance on outdated revenue projections from the Medium-Term Expenditure Framework (MTEF), even after the Senate had passed a revised budget with a higher revenue benchmark.
“This document is based on a figure that no longer exists,” Adeola said. “The Customs budget must reflect our amended revenue assumptions. Otherwise, it’s flawed.”
Despite fierce opposition from some lawmakers, including Senator Mutari, who argued that the budget should be suspended entirely, the Senate opted for passage — but with conditions.
Senate President Akpabio directed the Customs Committee to report monthly on revenue collection, capital execution, and personnel expansion. He also warned that the leadership would no longer tolerate rubber-stamp approvals.
“Sharpen your oversight tools,” Akpabio told the committee. “Bring us real numbers. Customs must be held to account — not just on revenue, but on every naira spent.”
The final motion dropped any reference to the ₦6.5 trillion revenue Customs expects to generate for the Federation in 2025, focusing instead on approving its internal ₦1.132 trillion expenditure plan.
The Customs Service may have secured its 2025 budget, but its reputation — and the trust of lawmakers — hangs in the balance. In a season of national revenue crisis, the Senate has drawn a red line: performance, not projections, will define future approvals.
