2025 Budget: Reps Demand Clarity on Unutilized Funds, Illegal

…queries poor funding despite record revenue

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…as Nigeria Customs propose N1.132trn for 2025, set N6.584trn revenue target

By Gloria Ikibah

Chairman of the House of Representatives Committee on Customs and Excise, Rep. Leke Abejide, has expressed deep concern over what he described as the poor funding of the Nigeria Customs Service (NCS), despite the agency surpassing its revenue targets for 2024.

Rep. Abejide who stated this during the presentation of the NCS 2025 budget proposal before the committee on Monday, in Abuja, described the funding situation as “astonishing” given the Service’s record-breaking performance.

“I have gone through your 2024 Budget performance and was flabbergasted, astonished, surprised and lack of word to express the level of poor funding of Nigeria Customs Service,” he said.

He noted that despite the Customs generating ₦6.105 trillion in 2024—exceeding its ₦5.079 trillion target by ₦1.026 trillion or 20.21%, its actual funding for essential operational areas remained below par. According to Abejide, performance on personnel cost stood at 43.53%, overhead at 46.34%, and capital project execution at just 45.68%.

The lawmaker also expressed concern over the unexplained absence of expected revenue from the Comprehensive Import Supervision Scheme (CISS).

“This committee would like to know, despite outperforming your target, yet you could not fund your Personnel cost, Overhead cost, and Capital projects both New and Ongoing projects.

“Another shocking revelation is that from January to December in 2024 the 60% of the 1% comprehensive import suspension scheme (CISS) which was part of the revenue source to fund your overhead, personnel cost and capital projects recorded zero revenue to your cover. It is in the opinion of this honourable committee that you should tell us what went wrong because the purpose of creating 1% CISS was to take care of service providers back then such as COTECNA, SGS, and GLOBAL SCAN who were responsible for valuation and the issuance of Risk Assessment Report (RAR) and maintain scanning operations.

“Also payment is equally made to Web Fountaine Limited that provided network and automation to NCS but about 80% of these operations and work schedules have been taken over by Nigeria Customs Service therefore, why are you not getting your share of 60% of the 1% CISS?.”

Abejide therefore called for a detailed explanation, questioning why Customs was not receiving its share of the CISS funds, particularly since many of the outsourced services such as valuation, scanning, and automation have since been internalized by the NCS.

He also pointed to the legal ambiguity surrounding CISS and other sources of Customs funding.

However, this committee is not unaware that CISS is not backed by any law in Nigeria. It is not LFN and even your 7% cost of collection is equally illegal as it is not in LFN. The only legal source of income back by the Act of Parliament as signed by the President of the Federal Republic of Nigeria into Law and is Gazetted in LFN is the 4% Free-On Board (FOB) which can be found in section 18(1a) of Nigeria Customs Service Act, 2023 (Federal Republic of Nigeria official Gazette No. 105 Lagos -9th June, 2023 Vol.110)”, Abejide emphasised.

Although the Comptroller-General of Customs, Mr. Bashir Adewale Adeniyi, was absent, having secured the committee’s approval to attend the World Customs Organisation (WCO) meeting, his Deputy, DCG BM Jibo, was permitted to stand in and present the 2025 budget.

Abejide noted the significance of Nigeria vying for the WCO Council Chairmanship for the first time since 1987/88, saying the opportunity “aligns with the broader vision of President Bola Ahmed Tinubu’s administration to revive Nigeria’s influence on the global stage.”

In his submission the Deputy Comptroller General of Nigeria Customs Service (NCS), Bello Jibo, presented a proposed budget expenditure of N1.132 trillion for the 2025 fiscal year, while setting a bold revenue target of N6.584 trillion.

Jibo noted the Service’s strong performance in 2024, as he said: “The approved revenue target for the year 2024 stood at N5.079 trillion, but the Service remarkably collected N6.105 trillion from January to December 2024. This reflects a positive variance of N2.899 billion or 90.40% above the approved revenue target.”

He credited the performance to institutional commitment despite key challenges such as duty exemptions, dwindling cargo throughput, currency fluctuations, and government policy changes.

On expenditure for 2024, the Service had an approved budget of N706.43 billion, but received only N290.62 billion during the year. However, the actual utilization totalled N322.67 billion, distributed as follows:

Personnel Cost: N94.37 billion
Overhead Cost: N56.00 billion
Capital Cost: N172.30 billion

For 2025 budget breakdown, the revenue target of N6.584 trillion is drawn from:

Federation Revenue: N3.853 trillion
Non-Federation Revenue: N1.081 billion
Import VAT: N1.650 trillion

The projected expenditure of N1.132 trillion will be funded through:

4% Free on Board FOB (2024): N1.070 trillion
2% VAT Share of NCS: N33.01 billion
Ongoing Capital Projects: N29.05 billion

This will be allocated as follows:

Personnel Cost: N247.16 billion (21.82%)
Overhead Cost: N239.97 billion (21.19%)
Capital Cost: N645.42 billion (56.99%)

Jibo explained that the budget for personnel was based on a nominal roll of 16,245 existing staff and the planned recruitment of 3,927 cadets, amounting to:

Salaries & Allowances: N197.99 billion
Pension Contributions: N18.19 billion
NHIS Contributions: N9.55 billion
Group Life & Backlog Insurance: N17.67 billion
NSITF & ITF Payments: N3.64 billion

Overhead Costs

The NCS is proposing N239.97 billion for daily administrative operations:

Staff Loans & Advances: N10.00 billion
Maintenance (Buildings, Vehicles, Boats, etc): N7.60 billion
Utilities, Supplies & Office Equipment: N4.14 billion
Travel & Transport: N18.60 billion
Fuel for Operations: N7.40 billion
Training & Retraining: N7.30 billion
Financial & Miscellaneous Services: N169.06 billion
Consulting & Professional Services: N4.67 billion

Capital Expenditure

The capital allocation of N645.42 billion is detailed as:

Proposed Works: N197.16 billion
Proposed Supplies: N135.03 billion
Ongoing Works: N225.53 billion
Ongoing Supplies: N86.20 billion
Outstanding Liabilities: N1.50 billion

Strategies for Revenue Growth

To meet the 2025 targets, the Service outlined several strategic initiatives:

Implementation of the Unified Customs Information System for full automation.
Strengthened revenue recovery through Post Clearance Audit (PCA) and systems audit.
Rollout of Authorized Economic Operator (AEO) and Advanced Rulings to improve trade facilitation.
Deployment of more scanners and surveillance equipment at key ports and borders.
Engagement with stakeholders and security agencies to curb smuggling and revenue leakage.
Reintroduction of Excise Duties on telecom services and single-use plastics.
Review of Tax Expenditure Policy to limit excessive waivers.
Increased investment in capacity building and recruitment.
Prioritization of stakeholder engagement throughout the fiscal year.

“It is my prayer that the Senate and House of Representatives consider and approve this proposed budget,” Jibo noted

The presentation reflects an ambitious but structured fiscal plan as the Nigeria Customs Service seeks to drive higher revenue, modernize operations, and sustain national economic resilience.