NRS sets ₦40.7tr revenue target for 2026

The Nigeria Revenue Service set a ₦40.7 trillion revenue target for 2026, projecting a strong rise that would go beyond the Federal Government’s budget estimate of ₦34.3 trillion for the year.

The projection was made by the Executive Director in charge of Government and Large Taxpayers at the NRS, Amina Ado Kurawa, during the 2026 NRS Leadership Retreat.

She explained that the target builds on steady improvement recorded between 2021 and 2025, during which total revenue collections grew more than four times.

She said reaching the 2026 goal would depend on tighter enforcement, wider tax compliance, and better operations under the newly structured NRS.

According to her, oil revenue is expected to rise slightly by about 1.4 per cent in 2026, supported mainly by Company Income Tax from oil-related activities, Petroleum Profits Tax, and Hydrocarbon Tax, despite lower oil price benchmarks.

Kurawa explained that non-oil revenue would remain the main source of growth. She said non-oil collections are projected to increase by 37.9 per cent to ₦24.836 trillion in 2026, compared to ₦21.5 trillion in 2025.

She added that royalty revenue has now been fully brought into the national revenue system for the first time following the expanded role of the NRS, creating an extra income source for the government.
Within the non-oil category, she said Company Income Tax, Value Added Tax, and the Development Levy are expected to contribute the largest share of revenue growth.

She noted that the Service plans to support the target through stakeholder engagement on new tax laws, automation of Petroleum Profits Tax, Hydrocarbon Tax and royalty payments, clearer regulations, improved audits, and shorter audit timelines.

She also said collaboration with state governments and federal ministries, departments and agencies would be strengthened to improve VAT and withholding tax remittances.

In addition, the NRS plans to expand its use of data tools such as e-invoicing, government contract records and other digital sources to close revenue gaps.
Kurawa also reviewed the Service’s 2025 performance, describing it as one of the strongest in recent years.

She said total revenue collection rose by 30.4 per cent to ₦28.3 trillion in 2025, compared to ₦21.7 trillion in 2024, beating the annual target of ₦25.2 trillion by 12 per cent.

She explained that actual collections reached 112 per cent of the 2025 target, with particularly strong results in the second and third quarters, while the first and fourth quarters fell slightly below expectations. Oil tax revenue stood at ₦6.8 trillion in 2025, about 95 per cent of the target, while non-oil tax revenue reached ₦21.4 trillion, equal to 119 per cent of its target.

Year-on-year data showed oil tax revenue rose from ₦5.8 trillion in 2024 to ₦6.8 trillion in 2025, while non-oil revenue increased from ₦15.9 trillion to ₦21.5 trillion. She said Company Income Tax, VAT, and Petroleum Profits or Hydrocarbon Tax recorded the strongest gains, with Capital Gains Tax rising sharply due to oil and gas sector divestments.

She added that filing compliance improved steadily between 2022 and 2025 across major taxes, supported by stricter penalties, fewer filing extensions, organisational changes introduced in 2024, better staff welfare, expansion of withholding tax, automation, and tax policy reforms.

Also speaking at the retreat, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said global financial conditions have made external funding less reliable for developing countries. Using 2024 figures, he explained that many developing economies paid more in debt service than they received from foreign aid and investment, leading to a net outflow of funds.

He said this situation shows that countries like Nigeria must rely more on internal revenue and domestic savings to fund development, making domestic revenue mobilisation a central part of economic stability.

The Executive Chairman of the NRS, Zacch Adedeji, urged leaders of the Service to move away from routine and old habits, saying the new NRS represents a break from the past and demands fresh thinking. He said leadership challenges often come from hidden beliefs that affect decision-making, warning that reforms can fail if such barriers are not addressed.

He said the retreat was focused first on leadership self-review, noting that effective leadership requires flexibility, humility and the ability to empower others rather than impose personal styles.

The Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, said Nigeria has moved from passing tax laws to delivering results. He noted that the country’s low tax-to-GDP ratio remains a weakness and that stable domestic revenue is now essential.

He described the NRS as a system that brings revenue efforts together, with the task of expanding the tax base, protecting vulnerable citizens, using data wisely, maintaining ethical standards, and building a strong workforce.

He added that success should also be judged by higher voluntary compliance, fewer disputes, lower collection costs, and stronger public trust in the tax system.