The Nigeria Revenue Service (NRS) has set an ambitious revenue target of N40.7 trillion for the 2026 fiscal year, exceeding the N34.3 trillion revenue estimate contained in the budget already signed by President Bola Ahmed Tinubu.
The projection means the NRS will need to outperform the Federal Government’s budget benchmark by about N6 trillion, a task officials say will depend heavily on effective implementation of the newly introduced tax laws.
NRS Executive Director for Government and Large Taxpayers, Amina Kurawa, disclosed the projection at the Service’s 2026 Leadership Retreat in Abuja. The event was attended by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the NRS Executive Chairman, Zacch Adedeji.
Kurawa noted that revenue performance between 2021 and 2025 improved significantly, with collections rising more than fourfold within the period. She, however, cautioned that sustaining growth would require stronger enforcement, broader compliance and improved operational efficiency under the new NRS framework.
She projected modest growth of about 1.4 per cent in oil revenue this year, assuming stable production levels and lower benchmark oil prices. The expected increase, she said, would largely come from Company Income Tax linked to oil operations, as well as Petroleum Profits Tax and Hydrocarbon Tax.
Finance Minister Edun stressed that the NRS must play a central role in Nigeria’s economic strategy, particularly as inflows from Overseas Development Assistance (ODA) and Foreign Direct Investment (FDI) decline. He described the global financial outlook for developing countries as challenging.
Edun cited figures showing that Nigeria spent $163 billion on debt servicing, while receiving $42 billion in ODA and $97 billion in FDI, amounting to $139 billion in total inflows. According to him, the imbalance underscores the urgent need to prioritise domestic revenue mobilisation as the anchor of fiscal sustainability.
Adedeji urged senior officials of the Service to abandon routine approaches and embrace innovation, saying the NRS represents a new institutional era that demands fresh thinking and leadership. He challenged the management team to deliver on the ambitious target.
Meanwhile, the Chartered Institute of Taxation of Nigeria (CITN) said the success of the new tax regime would depend largely on proper interpretation, implementation and communication. Its President, Innocent Ohagwa, said the reforms, which took effect on January 1, 2026, aim to promote efficiency, fairness and transparency, while strengthening the role of accredited tax professionals under the Nigeria Tax Administration Act, 2025.
