The Costs of Supersizing Customs’ Funding

The Nigeria Customs Service (NCS) has seen a significant increase in funding, with the 2025 budget reaching a staggering N1 trillion, a 60% rise from the previous year. This boost in funding places the Customs Service at the top of the super agency list in Nigeria, surpassing even the Nigeria Revenue Service.

The supersizing of funding for Customs is a result of the Nigeria Customs Service Act 2023, which allows the agency to charge and keep 4% of the value of imports. Despite some pushback and consultations with stakeholders, Customs has begun implementing this charge as instructed by the law.

The increased funding for Customs comes from deductions made from the Federation Account, including costs of collection, statutory revenue, and VAT refunds. This funding model has raised concerns about the impact on government revenue distribution and the efficiency of Customs operations.