NRS targets N50tn tax revenue in 2026 after collections hit N28.3tn
The Nigeria Revenue Service (NRS) has set its sights on generating nearly N50 trillion in tax revenue in 2026, following a sharp increase in collections from N12.3 trillion in 2023 to N28.3 trillion in 2025.
The target was disclosed in the agency’s mid-year economic snapshot, which showed that the service had already generated an estimated N21.6 trillion in the first half of 2026, putting it on course for another record-breaking year.
According to the report, tax collections rose from N12.3 trillion at the start of the administration in 2023 to N21 trillion in 2024 before reaching N28.3 trillion in 2025, with non-oil revenue now accounting for about 76 per cent of total collections.
The NRS attributed the growth to digital tax administration, major tax reforms, institutional restructuring and measures to curb leakages in oil revenue.
“Tax collections have risen from N12.3 trillion in 2023 to N28.3 trillion in 2025, driven by digital tax administration, new tax laws, the transition from the Federal Inland Revenue Service to the Nigeria Revenue Service and Executive Order 9, which blocked leakages in oil revenue remittances,” the report stated.
The agency said the introduction of the national e-invoicing system for large taxpayers, alongside four tax reform laws that took effect on January 1, 2026, had significantly improved compliance and revenue generation.
It also credited Executive Order 9, signed in February 2026, with boosting Federation Account receipts by requiring upstream oil and gas companies to remit royalties, taxes and production-sharing contract profits directly into the Federation Account.
Highlighting the long-term impact of the policy, the report said: “Executive Order 9 closes a structural leakage point that had, for years, allowed a portion of Nigeria’s oil-sector earnings to bypass the federally distributable pool, meaning its benefit should continue to compound in every subsequent month of full compliance, making it one of the single most effective revenue-side reforms of the administration to date.”
According to the report, the policy increased monthly Federation Account receipts by 60 per cent, from N1.8 trillion in February to N2.88 trillion in March 2026.
