The Nigeria Revenue Service (NRS) has set a revenue target of ₦40.7 trillion for 2026, signaling robust growth beyond the Federal Government’s budget estimate of ₦34.3 trillion.
The projection reflects what the NRS described as “sustained progress over the past five years.
Performance Highlights:
-Revenue collections rose more than fourfold between 2021 and 2025.
-In 2025, total collections reached ₦28.3 trillion, exceeding the target of ₦25.2 trillion by 12%, with strong quarterly performances in Q2 and Q3.
-Non-oil revenue remains the main growth driver, projected to increase 37.9% to ₦24.836 trillion in 2026. Company Income Tax, Value Added Tax, and the Development Levy are expected to contribute most to this growth.
-Oil revenue is expected to grow modestly by 1.4%, mainly from petroleum-related taxes.
Key Strategies for 2026
-Strengthened enforcement, broader compliance, and improved operational efficiency under the new NRS framework.
-Automation of Petroleum Profits Tax, Hydrocarbon Tax, and royalty assessments.
-Expanded use of data analytics, e-invoicing, and government contract data to close revenue gaps.
-Collaboration with state governments and federal agencies to enhance VAT and withholding tax collections.
Additionally, royalty revenue has now been fully integrated into the national revenue framework, providing an additional income stream.
Outlook:
The NRS expects positive year-on-year growth, relying on improved compliance, operational efficiency, and digital solutions to achieve the ₦40.7 trillion target.
