Nigeria’s fiscal authority, the Nigeria Revenue Service (NRS), collected ₦28.3 trillion in 2025, a 30% increase from the ₦25.5 trillion recorded in 2024. The agency has set a target of ₦40.7 trillion for the 2026 fiscal year, citing expanded non-oil revenue and royalty-based collections as central to this goal.
The NRS attributed the 2025 growth primarily to the non-oil sector, which includes Company Income Tax, Value Added Tax (VAT), and the Development Levy. Amina Kurawa, Executive Director for Government and Large Taxpayers, disclosed the figures during a staff retreat, highlighting the sector’s role in reducing reliance on volatile oil earnings. She noted the performance reflects ongoing efforts to diversify the nation’s revenue base.
For 2026, the NRS projects further gains from these non-oil tax streams, alongside improved royalty-based income. The ambitious target underscores a strategic shift toward broadening domestic resource mobilization. Chairman Zacch Adedeji, addressing staff at the retreat, emphasized that operational transparency and accountability are essential to achieving the objective, calling for heightened performance across the agency.
Nigeria’s economy has long depended on oil for the majority of government revenue, exposing it to global price fluctuations. The NRS’s focus on non-oil taxes—levied on businesses, consumption, and development contributions—aligns with national reforms aimed at fiscal stability. Recent initiatives, including digital tax administration and enhanced compliance measures, seek to tap into underutilized revenue segments, particularly within the services and industrial sectors.
Meeting the 2026 target would significantly bolster Nigeria’s capacity to fund public services and infrastructure without excessive borrowing. However, success hinges on sustained economic growth, taxpayer cooperation, and efficient implementation of collection strategies. The NRS’s renewed push for internal accountability signals recognition that institutional integrity is as crucial as revenue targets in navigating the country’s fiscal challenges.
