Nigeria Revenue Service (NRS) has generated N21.6tn in revenue in the first half of 2026, representing a 49 per cent increase compared to the corresponding period of 2025, according to an economic report from the Presidency.
The figures were contained in the Economic Snapshot Report 2023 vs 2026, obtained on Monday 6 July, which reviewed Nigeria’s economic performance since President Bola Tinubu assumed office in May 2023.
The report attributed the strong revenue growth to sweeping tax reforms, digitalisation of tax administration, the expansion of the NRS’s mandate, and changes to oil revenue remittance procedures.
According to the report, total tax collections increased from N12.3tn in 2023 to N21tn in 2024 and N28.3tn in 2025, while the N21.6tn realised in the first six months of 2026 marked a 49 per cent year-on-year increase.
It added that non-oil revenue accounted for 76 per cent of total collections, while Nigeria’s tax-to-GDP ratio improved from 10.3 per cent to 13 per cent.
The report said the revenue growth was driven by the rollout of a national e-invoicing system for large taxpayers, the implementation of four tax reform laws effective January 1, 2026, and the transformation of the Federal Inland Revenue Service into the Nigeria Revenue Service, which consolidated non-tax revenue collections previously handled by other agencies.
It also credited Executive Order 9, signed in February 2026, with significantly increasing Federation Account receipts by requiring upstream oil and gas operators to remit royalties, taxes and production-sharing contract profit oil directly to the Federation Account.
According to the report, the policy increased monthly Federation Account receipts by 60 per cent, from N1.8tn in February to N2.88tn in March 2026, by eliminating deductions at source and closing long-standing loopholes in upstream remittances.
“The impact was immediate and measurable,” the report stated, adding that the reform had addressed a structural leakage that previously allowed part of Nigeria’s oil revenue to bypass the distributable revenue pool.
It also attributed the record collections to sustained investment in staff recruitment, training and digital tools under the agency’s current leadership.
Despite the gains, the report noted that Nigeria’s tax-to-GDP ratio remained below the government’s long-term target of 18 per cent and said there was considerable room for further improvement as e-invoicing coverage expands and the new tax laws take full effect through 2026 and 2027.
It recommended that the Federal Government seek legislative backing for Executive Order 9 by incorporating its provisions into the Nigeria Tax Administration Act or future amendments to the Petroleum Industry Act to sustain the increase in Federation Account revenues.
The report also highlighted broader economic improvements since May 2023, including an increase in external reserves to $50.11bn from $3.99bn, growth in crude oil and condensate production to 1.9 million barrels per day from between 1.2 million and 1.3 million barrels per day, and an expansion in domestic refining capacity from 30,000 barrels per day to 700,000 barrels per day.
It further stated that annual capital importation rose from $3.9bn in 2023 to $23.22bn in 2025, while the Nigerian Exchange’s market capitalisation increased from N30.36tn to N155tn.
Recall that the NRS had set a revenue target of N40.7tn for 2026, representing a 44 per cent increase over the N28.29tn collected in 2025, as it seeks to boost non-oil revenue, improve tax compliance and reduce the country’s reliance on borrowing.
