Nigeria’s tax collections rose to ₦27.1 trillion within the first seven months of 2026, according to the Nigeria Revenue Service (NRS), highlighting the continued growth of government revenue from taxation.

The revenue performance comes as the Federal Government continues efforts to strengthen domestic revenue mobilisation and reduce dependence on volatile sources of government income. The NRS is responsible for administering federal taxes and improving compliance among taxpayers across the country.

The latest collection figure reflects the growing importance of taxation to Nigeria’s public finances. As government spending demands increase, stronger domestic revenue mobilisation remains critical to financing infrastructure, social programmes and other development priorities.

The NRS has continued to focus on improving tax administration, expanding the country’s taxpayer base and making collection processes more efficient. Greater use of digital systems and data-driven monitoring is also expected to improve compliance and reduce revenue leakages.

For businesses and individuals, the increase in tax collections could signal a stronger emphasis on tax compliance as authorities continue to broaden the formal tax base. The challenge for government, however, will be ensuring that higher revenue collections are matched by efficient and transparent public spending.

Increased tax revenue could provide additional fiscal space for investment in critical infrastructure, including roads, housing, electricity, healthcare and other public services. This is particularly important as Nigeria faces significant infrastructure and housing needs across its rapidly growing population.

The development also highlights the importance of creating a tax system that encourages compliance without placing excessive pressure on businesses and households. A predictable and transparent tax environment can help improve investor confidence while giving government a more sustainable source of revenue.

With tax collections reaching ₦27.1 trillion in seven months, the performance will likely strengthen the government’s focus on domestic revenue mobilisation for the remainder of the year.

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Federal government agencies have proposed more than ₦400 billion in the 2026 budget for the construction and renovation of mosques, palaces, civic centres, halls, and other public facilities, according to budget documents submitted for legislative consideration. The proposals have sparked debate over public spending priorities at a time of economic pressure and growing infrastructure needs.

The budget provisions are spread across several ministries, departments, and agencies and include projects such as worship centres, traditional institutions, community halls, event centres, and public assembly facilities. Analysts say the allocations have attracted public attention because of their size and the range of projects included.

Critics argue that scarce public resources should be directed toward sectors such as housing, healthcare, education, roads, water supply, and electricity, where infrastructure deficits remain significant. They contend that increased investment in productive infrastructure would generate stronger economic and social returns.

Supporters of the projects maintain that many of the proposed facilities serve community, cultural, religious, and social functions and can contribute to local development, social cohesion, and public welfare. They also argue that some of the projects involve rehabilitation or completion of existing public assets.

Public finance experts have called for greater transparency in budget preparation and implementation, including clearer project descriptions, cost justification, procurement details, and measurable outcomes. They stress that effective oversight is essential to ensure value for money and prevent wasteful expenditure.

The debate comes as the Federal Government continues discussions on the 2026 fiscal framework and broader efforts to improve budget credibility, revenue mobilisation, and public expenditure efficiency. Stakeholders say the controversy highlights the need for stronger alignment between national development priorities and capital budget allocations.

Economists note that public confidence in government spending is strengthened when budget allocations are linked to clear economic benefits, service delivery improvements, and long-term development objectives.

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Nigeria needs more taxpayers, not higher taxes, according to Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who said expanding the country’s tax base is essential to generating sustainable revenue and supporting long-term development.

Oyedele stated that Nigeria’s tax challenge is not necessarily low tax rates but the relatively small number of individuals and businesses that comply with tax obligations. He stressed the importance of ensuring that those who should pay taxes are brought into the tax net while promoting fairness and efficiency in tax administration.

According to him, the country cannot continue to depend heavily on borrowing to finance critical sectors such as infrastructure, education, healthcare, security, and social protection. He noted that building a sustainable fiscal system requires a broader tax base capable of generating stable and predictable revenue.

Oyedele explained that effective tax reforms should encourage economic growth, reduce inequality, protect vulnerable groups, and improve productivity. He added that a well-functioning tax system could significantly accelerate national development and improve public service delivery.

The comments come amid the implementation of ongoing tax reforms designed to simplify Nigeria’s tax framework, improve compliance, and make the system more competitive and equitable. Recent reforms also introduced relief measures and exemptions for low-income earners and small businesses while seeking to reduce the country’s reliance on debt-financed development.

Economic experts say broadening the tax net through increased compliance and formalisation of economic activities could improve government revenue without placing additional burdens on existing taxpayers.

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My fellow compatriots,

Three years ago, you entrusted me with the sacred responsibility of leading our beloved nation at a defining moment in our history. I accepted that responsibility, fully aware of the magnitude of the challenges before us, but also deeply confident in the resilience and potential of the Nigerian people.

Today, on the occasion of the third anniversary of our administration, I speak to you not only as your President but also as a fellow citizen who understands the sacrifices many families have made in recent years and shares your hopes for a better Nigeria.

When this administration assumed office, our nation faced profound economic and structural difficulties. Mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity in several parts of the country, energy supply constraints, and declining public confidence in institutions all threatened our progress.

At the height of the subsidy regime, Nigeria was spending as much as ₦18.4 billion daily to sustain petrol subsidies—over ₦4 trillion in 2022 alone—resources that could have been invested in roads, healthcare, education, housing, and critical infrastructure. Multiple exchange rate windows and forex arbitrage created massive distortions, with Nigeria losing more than ₦8 trillion over three years to rent-seeking and speculative practices.

The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis. The easy choices would have been politically convenient. But leadership demands courage, especially when the right decisions are difficult.

Had we refused to act, our nation would have drifted toward fiscal breakdown, worsening poverty, and severe economic uncertainty. Together, we chose reform over ruin and decisiveness over hesitation. We chose long-term national recovery over short-term comfort.

These decisions came with sacrifice. The rising cost of living triggered by our measures placed enormous pressure on families, workers, and businesses. Young people searching for jobs felt discouraged. Many questioned whether these difficult decisions would lead to a better future.

I remain deeply conscious of those sacrifices, and I assure you: your sacrifice has not been in vain.  And today, I can say with confidence that Nigeria has stabilised and is moving forward again. Across the country, visible progress is taking shape.

VISIBLE PROGRESS AND ECONOMIC GROWTH

Our economy is now more competitive and better positioned for sustainable growth than it was in 2023. Public finances are improving. States and local governments have greater resources to invest in their people. Investor confidence is growing. The stock market is booming, with the All Share Index rising from 53,000 and market capitalisation of N30 Trillion in 2023 to a record All Share Index of 250,000 and market capitalisation of N160 Trillion this year.  Companies are declaring record profits and dividends.

Critical infrastructure projects are advancing at an unprecedented scale. Over 2,700 kilometres of highways and major roads are under construction, reconstruction, or rehabilitation, including the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Super Highway, the Abuja-Kaduna-Zaria-Kano Road, the East-West Road, and many rural access roads. Significant sections are already completed or nearing completion, improving transportation, reducing travel time, boosting regional trade, and creating thousands of jobs.

Rail modernisation projects are ongoing to improve connectivity, logistics, and economic integration across the federation.

In the oil and gas sector, the reforms we instituted have attracted billions of dollars in fresh investment from the international oil companies that had shunned our country. The $5 billion NLNG Train 7 project is nearing completion to boost LNG production capacity, exports, and dividends.

Domestic gas utilisation is expanding.  Local refining capacity has improved our energy security. With large-scale domestic and modular refineries operational, Nigeria is reducing its dependence on imported petroleum products and conserving foreign exchange.

For years, the power sector suffered from debt, underinvestment, and uncertainty, which weakened generation capacity and limited growth. Today, we are confronting those challenges directly.

Our administration is clearing legacy obligations, expanding transmission infrastructure, investing in renewable energy, and strengthening the national grid because no modern economy can grow in darkness. When power improves, businesses expand, industries grow, jobs are created, and families prosper.

We are determined to power Nigeria into a new era of industrial growth and economic opportunity.

EMPOWERING NIGERIANS: AGRICULTURE, EDUCATION, AND HOUSING

Agricultural interventions have supported millions of farmers by improving seedlings, fertilisers, mechanisation, and irrigation and by expanding access to finance and markets. We are opening new agricultural corridors to create jobs, strengthen supply chains, and reduce pressure on household incomes.

The Nigerian Education Loan Fund has provided over 1.5 million students with access to higher education, disbursing more than ₦282 billion to ensure that no willing student is denied access due to financial hardship.

Our Renewed Hope Housing Programme, along with that of the Federal Housing Authority (FHA), is delivering over 10,000 housing units across 14 states and the FCT, creating over 300,000 jobs and expanding access to affordable housing. Major Renewed Hope Cities in Abuja, Lagos, and Kano are progressing steadily. Our consumer credit initiative, CREDICORP, is opening up new economic opportunities for workers and families.

In healthcare, thousands of primary healthcare centres are being revitalised, while health insurance coverage is expanding for vulnerable Nigerians.

DEEPENING TELECOMS ACCESS AND INVESTMENT

We also took decisive action to stabilise the telecommunications sector, which remains one of the most important drivers of modern economic growth.
After years of severe operational pressures and declining investment, confidence is gradually returning to the sector. Telecom operators are expanding networks, investing in infrastructure, recruiting Nigerian talent, and widening digital access across the country.
A connected Nigeria is a more competitive Nigeria. Digital infrastructure is now essential to commerce, education, innovation, and national productivity.

YOUTH, TECHNOLOGY AND DIGITAL TRANSFORMATION

To our young people, I want you to know this nation believes in you. You are not a problem to be managed. You are the engine of Nigeria’s future. Across technology, manufacturing, creative industries, agriculture, sports, and entrepreneurship, we are expanding opportunities for you to compete and succeed. We are investing in digital skills, technical education, innovation, student financing, and enterprise support because the future must be driven by Nigerian talent, creativity, and productivity.

SECURITY AND NATIONAL UNITY

Security remains central to our national mission and to the creation of a virile and prosperous society. Our Armed Forces and security agencies have intensified operations against terrorists, bandits, kidnappers, oil thieves, and criminal networks. While challenges remain, many communities and highways are becoming safer and more economically active. We continue investing in intelligence, surveillance, logistics, technology, and inter-agency coordination. We are improving the capabilities of our armed forces and security agencies, and reclaiming the authority of the Nigerian state wherever criminality threatens peace and order. While we continue to confront the challenges head-on, progress is being made. I want to assure you that this government will not relent until every Nigerian can live, work, travel, and dream in safety.

My fellow Nigerians,
A nation develops when its people can see and touch progress. From highways under construction to rail modernisation and expanded energy investments, our goal remains clear: to build a Nigeria that works for Nigerians.

We have not solved every problem, and we are not yet where we want to be. But the foundation for recovery has been laid. The task before us now is clear: we must ensure that the benefits of reform are felt more directly in the daily lives of ordinary Nigerians.

We shall achieve this task by continuing to ensure that food prices, which have largely come down from their peak in 2023/2024, remain low.
We are also working to reduce transportation costs as operators of commercial trucks, buses, and taxis convert their petrol engines to CNG and switch to electric vehicles. We have also set our sights on creating more opportunities for decent work and enabling enterprise expansion.

A CALL TO NATIONAL PURPOSE

The journey of national renewal is not completed in a single year or a single administration’s tenure. Nations rise when their people remain united in purpose, disciplined in effort, and hopeful about the future.
We must choose hope over despair, unity over division, and nation-building over narrow interests.

But true security and prosperity require that every Nigerian feel included and valued. Nigeria belongs to all of us—no region, faith, or group should feel marginalised or forgotten. Our diversity is a source of strength. Whether Christian or Muslim, North or South, urban or rural, we rise or fall together as one nation under God.

To our youth, workers, entrepreneurs, farmers, professionals, security personnel, students, and diaspora: your sacrifices sustain our nation, and they will not be in vain. To the international community and investors: Nigeria remains committed to democratic stability, economic reform, responsible governance, and mutually beneficial partnerships.

My fellow Nigerians,
History teaches us that great nations are not built in comfort. They are built through sacrifice, resilience, courage, and collective purpose.
Ours is a nation of extraordinary people. We survived civil war and rebuilt.
We overcame dictatorship and restored democracy. We endured hardship and remain bearers of hope. The Nigerian spirit remains strong and unbroken.

Today, the world is watching our country again, not as a nation defined by its difficulties, but as a nation determined to rise. Across agriculture, infrastructure, power, technology, manufacturing, and industry, the signs of recovery are becoming clearer. Confidence is returning. Productivity is improving. Opportunity is expanding.

LOOKING FORWARD

The work ahead is enormous, but I remain optimistic because I believe deeply in this country and in you, the Nigerian people.

I ask you to keep faith with Nigeria. Let us reject cynicism and division. Let us move forward together, united in purpose, disciplined in effort, compassionate toward one another, and confident in the greatness that lies ahead.

My fellow Nigerians, history tests nations before it elevates them. Nigeria is passing through such a test. But I believe with all my heart that we shall emerge stronger, fairer, more united, and more prosperous than ever before.

Let us continue this journey together. Let us build a Nigeria that is secure, prosperous, inclusive, and respected worldwide. Let us continue to believe in the promise of our nation.

May God bless you all.
May God bless the Federal Republic of Nigeria.

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President Bola Ahmed Tinubu has defended the removal of fuel subsidy and the unification of Nigeria’s foreign exchange market, saying the policies were necessary to prevent a looming fiscal collapse and deeper economic instability.

Speaking during his third anniversary nationwide address, the President said Nigeria was spending as much as ₦18.4 billion daily on petrol subsidies, amounting to over ₦4 trillion in 2022 alone.

He also disclosed that the existence of multiple foreign exchange windows created opportunities for arbitrage and speculative trading, which he said drained more than ₦8 trillion from the economy within three years through rent-seeking activities.

According to Tinubu, the economic situation required urgent and decisive reforms to stabilise public finances and prevent a broader national crisis.

“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis,” he said.

The President acknowledged that the reforms have triggered inflationary pressures and increased the cost of living for Nigerians, but maintained that they were essential to restoring macroeconomic stability.

He added that the policy direction has improved government revenues and strengthened confidence in the economy, despite short-term economic hardship.

Tinubu said the decision to prioritise long-term national stability over immediate political convenience was necessary to secure Nigeria’s economic future.

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The Federal Government is seeking a fresh $1.25bn loan from the World Bank to support economic reforms, job creation, and national competitiveness, even as Nigeria’s public debt continues to climb and the facility reaches a decisive approval stage.

Findings indicate that the proposed facility, titled Nigeria Actions for Investment and Jobs Acceleration, is expected for World Bank Board consideration on June 26, 2026.

If approved, it would become the second-largest World Bank loan secured under President Bola Ahmed Tinubu, after the $1.5bn development policy financing approved in 2024.

At an exchange rate of N1,361.4/$, the facility amounts to about N1.70tn, further increasing Nigeria’s external debt profile.

Loan Now At Final Approval Stage

According to World Bank documentation, the loan has progressed to the decision meeting stage, where management reviews final appraisal details before presenting it to the Board of Executive Directors.

The Federal Ministry of Finance will implement the programme, which is designed to expand access to finance, digital services, electricity supply, and strengthen competitiveness through reforms in taxation, trade, and agriculture.

The document confirms that negotiations and appraisal processes have largely been concluded, placing the project near final approval.

Nigeria’s Rising World Bank Exposure

Between June 2023 and May 2026, Nigeria has secured about $9.35bn in World Bank financing across sectors including power, education, healthcare, agriculture, and social protection.

If the new loan is approved, total World Bank commitments under Tinubu would rise to about $10.6bn.

However, many of these loans are tied to policy conditions and are released in tranches, often slowing disbursement.

Debt Stock Continues To Rise

Nigeria’s external debt stood at $51.86bn as of December 2025. With the new facility, it could rise to about $53.11bn.

Total public debt may also increase from N159.28tn to about N160.98tn.

World Bank loans already account for over 38% of Nigeria’s external debt stock, according to Debt Management Office data.

Government Raises Concern Over Approval Delays

The Accountant-General of the Federation, Shamseldeen Ogunjimi, has warned that Nigeria may reconsider future borrowing if World Bank approval and disbursement timelines remain slow.

He argued that loan processes extending beyond six months could disrupt project planning and national priorities.

Experts Split Over Borrowing Strategy

Economists remain divided over Nigeria’s growing reliance on multilateral loans.

Adewale Abimbola noted that concessional loans can support development if properly deployed into revenue-generating projects.

However, Aliyu Ilias cautioned that rising debt contradicts government claims of improved revenue after subsidy removal.

Muda Yusuf of the Centre for the Promotion of Private Enterprise stressed that debt sustainability depends on stronger revenue generation and careful management of exchange rate risks.

Fiscal Risks Remain High

The Nigerian Economic Summit Group warned that despite marginal improvements in debt indicators, Nigeria’s fiscal position remains fragile.

It noted that debt pressures continue to fluctuate within a high-stress range, driven largely by weak revenue performance and sustained borrowing needs.

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The Federal Government of Nigeria is set to raise N700 billion from the domestic bond market in April 2026, continuing its gradual borrowing strategy amid persistently high interest rates.

The auction, conducted through the Debt Management Office (DMO), is scheduled for April 27, 2026, with settlement planned for April 29.

Breakdown of April Bond Offer

According to the official bond offer circular, the issuance will be executed through the re-opening of three existing instruments:

N300 billion in the 17.945% FGN August 2030 bond

N100 billion in the 17.95% FGN June 2032 bond

N300 billion in the 22.60% FGN January 2035 bond

The structure shows the government’s continued reliance on longer-term instruments to manage refinancing risks while improving liquidity in benchmark securities.

Borrowing Target Continues to Decline

The April issuance reflects a steady reduction in monthly borrowing, following a pattern of gradual cuts in recent months.

The offer has declined from N900 billion in January, to N800 billion in February, N750 billion in March, and now N700 billion in April, indicating a controlled adjustment in debt issuance strategy.

The latest reduction of N50 billion also comes with a reshuffling of maturities, with the seven-year bond allocation significantly reduced compared to previous months.

High-Yield Environment Persists

The coupon structure highlights Nigeria’s continued high-interest-rate environment.

While the five-year and seven-year bonds remain around 17.95%, the 10-year bond carries a significantly higher rate of 22.60%, reflecting increased investor demand for higher returns amid inflation and currency pressures.

Final yields will be determined at auction based on investor bids and prevailing market conditions.

Institutional Investor Focus

The bonds will be issued in units of N1,000, with a minimum subscription of N50.001 million, targeting institutional investors such as pension funds, banks, and asset managers.

The DMO also confirmed that the instruments remain tax-exempt and qualify as liquid assets for banks, reinforcing their attractiveness in the fixed-income market.

Monetary Policy and Debt Pressure

The sustained high borrowing costs align with the Central Bank of Nigeria’s tight monetary stance aimed at curbing inflation.

However, this has continued to increase the government’s debt servicing burden, raising concerns about fiscal sustainability.

Recent data shows Nigeria’s debt service obligations rose significantly in 2025, reflecting the impact of elevated domestic borrowing costs and persistent macroeconomic pressures.

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The Presidential Fiscal Policy and Tax Reforms Committee has dismissed reports suggesting that Taiwo Oyedele admitted errors in Nigeria’s newly introduced tax laws, describing the claims as misleading and a misrepresentation of his remarks.

In a statement released via Oyedele’s official communication channel, the Committee clarified that recent media reports had wrongly interpreted his comments, creating the impression that the reforms were flawed or under legislative review.

According to the Committee, the legislative process for the tax reforms has already been concluded, with gazetted copies certified and in effect since January 2026.

It stressed that suggestions of a pending probe or unresolved issues are inaccurate and risk misleading the public about the intent and status of the reforms.

Oyedele, who chairs the Presidential Fiscal Policy and Tax Reforms Committee, had earlier addressed stakeholders at the 2026 Nigerian Bar Association Section on Legal Practice Conference, where he explained that the reforms were designed to address long-standing structural inefficiencies in Nigeria’s tax system.

He highlighted disparities under the previous regime, noting that individuals often paid lower effective tax rates compared to businesses, a situation he described as inconsistent with global best practices.

While acknowledging that reforms typically evolve over time, Oyedele emphasised that ongoing adjustments should not be interpreted as evidence of fundamental flaws in the law.

The Committee also pointed to early indicators of progress, including a significant increase in tax registration and formalisation of businesses across the country.

Officials revealed that the number of individuals captured within the tax system has risen sharply, alongside a growing number of informal businesses entering the formal economy.

Key features of the new tax framework include exemptions for small businesses, increased thresholds for low-income earners, and tax relief on essential expenses such as food, healthcare, education, transportation, and rent.

The reforms also introduce a Tax Ombud system aimed at protecting taxpayer rights and improving dispute resolution mechanisms.

Reaffirming its position, the Committee noted that periodic updates through finance legislation are standard practice globally and reflect continuous improvement rather than policy failure.

It maintained that the broader objective of the reforms is to strengthen revenue mobilisation, reduce dependence on oil income, and build a more equitable tax system.

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Nigeria’s continued reliance on borrowing to fund its national budget has been defended by the Budget Office of the Federation, which insists that the strategy reflects global fiscal practice rather than economic fragility.

The clarification comes amid public concern following the removal of fuel subsidy, with expectations that the policy would significantly reduce government borrowing and ease fiscal pressure.

Speaking in Kano, Director of Expenditure (Social) at the Budget Office, Yusuf Muhammed Kurawa, explained that borrowing remains a legitimate tool for bridging budget deficits, noting that many economies depend on it to sustain development.

According to him, the critical issue is not borrowing itself but how effectively such loans are managed and deployed to support national priorities and economic growth.

Kurawa acknowledged that Nigeria is currently grappling with fiscal constraints, which continue to impact budget implementation despite ongoing reforms by the administration of Bola Ahmed Tinubu.

He, however, expressed optimism that recent economic policies introduced by the government are beginning to yield results, urging Nigerians to remain patient as the reforms take full effect.

The Budget Office official described the national budget as the most important policy document after the constitution, stressing that it plays a central role in shaping economic direction and public spending.

He maintained that the government remains committed to ensuring discipline, transparency, and efficiency in budget execution, adding that all processes within the Budget Office are being handled with precision and accountability.

The remarks come at a time when Nigeria faces mounting economic challenges, including revenue shortfalls, inflationary pressures, and increasing debt obligations, all of which have intensified scrutiny of government borrowing.

Analysts note that while borrowing is a common global practice, its sustainability depends on strong fiscal management, improved revenue generation, and the ability of the economy to absorb and repay debt without compromising growth.

They argue that without significant expansion in revenue sources, reliance on borrowing could continue to strain public finances and limit the government’s capacity to invest in critical sectors.

Nonetheless, officials insist that ongoing reforms are designed to stabilise the economy, improve fiscal balance, and gradually reduce dependence on borrowing over time.

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The Nigeria Revenue Service (NRS) has projected a record N40.7 trillion in tax revenue and royalties for 2026, a significant jump from the N28.23 trillion collected in 2025.

This projection reflects the impact of sweeping tax reforms aimed at consolidating revenue collection under the NRS and enhancing fiscal efficiency nationwide.

Executive Chairman of the NRS, Zach Adedeji, disclosed the figures during a roundtable in Abuja on Wednesday organized by the House of Representatives Committee on Appropriations for key stakeholders in the financial sector.

The meeting provided lawmakers an opportunity to review the agency’s 2025 performance and examine projected revenue for the new fiscal year.

Adedeji attributed the higher 2026 target to recent reforms transferring petroleum revenues, mineral royalties, and other federal collections to the NRS. “In light of these reforms, the total target is N40.7 trillion. We believe that with the support of the House, we will achieve this goal,” he said.

The 2025 fiscal year saw the NRS exceed expectations, collecting N28.23 trillion against a target of N25.2 trillion. This represented a 30.3 percent year-on-year growth compared to 2024, primarily driven by non-oil taxes. Adedeji emphasized that the reforms provide a more structured and efficient system for revenue mobilization, reducing the number of agencies involved in tax collection.

Backstory
The transformation stems from the Nigeria Revenue Service Establishment Act, 2025, which officially rebranded the Federal Inland Revenue Service (FIRS) into the NRS. The legislation, signed into law by President Bola Tinubu on June 26, 2025, consolidated federal tax administration under a single authority, limiting other agencies from collecting overlapping revenues. Taiwo Oyedele, Chairman of the Presidential Tax Committee, noted that the reforms were designed to allow about 60 federal agencies to focus on their core mandates rather than revenue collection.

This overhaul forms part of a broader strategy to modernize Nigeria’s tax administration and strengthen fiscal governance. By centralizing tax collection, the NRS aims to streamline compliance, reduce corruption, and provide a clear framework for accountability.

At the roundtable, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the importance of the reforms in transitioning Nigeria from dependence on ad hoc financing, including the now-defunct subsidy system funded by the Nigerian National Petroleum Company Limited (NNPCL), to more sustainable, market-based fiscal mechanisms. “The reforms are intended to correct distortions, enhance transparency, and provide predictable revenue streams for national development,” Edun said.

Rep. Abubakar Bichi (APC–Kano), Chairman of the House Committee on Appropriations, emphasized the significance of legislative oversight in understanding the NRS’s projections. “This engagement allows us to study, consider, and approve the 2026 revenue targets. It is essential that Nigerians understand how these projections are derived and the impact of tax reforms on national finances,” he stated.

The reforms are expected to have far-reaching implications for Nigeria’s fiscal landscape. By consolidating petroleum royalties, mineral revenues, and other federal taxes under the NRS, the government aims to reduce leakage, enhance revenue predictability, and support economic growth initiatives. Analysts also suggest that this streamlined structure could encourage compliance among taxpayers by providing a clear and unified point of interaction for all federal taxes.

In addition to boosting revenue, the reforms align with Nigeria’s broader economic strategy of diversifying income sources beyond oil, promoting transparency, and enabling long-term fiscal sustainability. By increasing non-oil tax collections, the government can invest more effectively in infrastructure, healthcare, education, and other critical public services.

What You Should Know

• The NRS is now Nigeria’s central revenue authority, replacing FIRS.
• 2026 revenue target: N40.7 trillion, up from N28.23 trillion in 2025.
• Tax reforms transferred petroleum and mineral royalties to the NRS.
• Reforms aim to centralize tax collection, reduce agency overlap, and improve compliance.
• Fiscal strategy includes transitioning from subsidy-dependent financing to market-based solutions.

The NRS’s ambitious target reflects Nigeria’s ongoing efforts to modernize its tax system, enhance fiscal discipline, and promote inclusive economic growth through efficient revenue collection.

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