Nigeria’s revenue authorities are raising the bar for 2026, with the Nigeria Revenue Service (NRS) unveiling an ambitious ₦40.7 trillion revenue target following sweeping tax reforms that expanded its mandate to include petroleum royalties and other mineral revenues.
The announcement was made by NRS Executive Chairman, Zach Adedeji, during an appearance before the House of Representatives Committee on Appropriations alongside members of President Bola Ahmed Tinubu’s economic team.
2025 Performance Beats Expectations
Adedeji revealed that the Service exceeded its 2025 revenue target of ₦25.2 trillion, posting ₦28.23 trillion in collections — ₦3 trillion above projections, representing a 12% increase.
Non-oil taxes emerged as the strongest growth driver, generating ₦21.46 trillion — ₦3.4 trillion above expectations. Oil tax revenue, however, fell short of its target by 5.2%.
Compared to 2024, the NRS recorded an additional ₦6.5 trillion in 2025 revenue — a 30.3% increase largely powered by non-oil receipts.
2026 Projection Anchored on Oil Output, Reforms
For 2026, the Service is projecting ₦32.14 trillion in core revenue collections, supported by anticipated growth in oil production from 1.7 million barrels per day to 1.8 million barrels per day, alongside gains from ongoing tax reforms.
The broader ₦40.7 trillion ambition reflects expanded revenue streams under the restructured framework.
Lawmakers Raise Budget Concerns
During the session, lawmakers expressed concern over what they described as zero capital performance in the 2025 budget.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, defended the administration’s fiscal approach, noting that prior reliance on Ways and Means financing — which rose to about ₦30 trillion — and fuel subsidy under-recovery arrangements by the Nigerian National Petroleum Company Limited were unsustainable.
Edun stated that President Tinubu halted unchecked borrowing to stabilize the economy, though the move created short-term funding gaps.
Meanwhile, Minister of Budget and National Planning, Atiku Bagudu, disclosed that an agreement had been reached with the National Assembly to roll over 70% of the 2025 capital allocation into 2026 to improve implementation.
Chairman of the House Committee on Appropriations, Abubakar Bichi, said lawmakers would require further clarification on revenue projections to guide deliberations on the 2026 appropriation bill.
Can the Momentum Be Sustained?
With ₦28 trillion realised in 2025 against a ₦25 trillion target, attention now turns to whether the bold 2026 revenue ambition can be sustained amid ongoing economic reforms, fiscal restructuring, and oil market volatility.
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