Nigeria’s tax revenue is projected to reach nearly ₦50 trillion in 2026 as the Nigeria Revenue Service (NRS) strengthens tax compliance and expands revenue collection through digital reforms and new tax laws.
According to the agency’s mid-year economic report, the NRS generated an estimated ₦21.6 trillion in the first half of 2026. The agency said non-oil revenue now accounts for about 76 per cent of total collections, reflecting the government’s drive to diversify revenue sources beyond oil.
The report noted that Nigeria’s tax-to-GDP ratio has risen from 10.3 per cent in May 2023 to 13 per cent in the first half of 2026. It attributed the improvement to the rollout of electronic invoicing for large taxpayers, the implementation of four new tax reform laws and the transition from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service, which expanded the agency’s responsibilities.
The NRS also credited Executive Order 9, introduced in February 2026, with significantly boosting federation revenue by requiring oil and gas operators to remit royalties, taxes and production-sharing revenues directly into the Federation Account. The reform increased monthly federation receipts by about 60 per cent, helping to block long-standing revenue leakages.
Beyond tax administration, the report highlighted broader improvements in Nigeria’s economy since 2023. It said inflation has eased from its 2024 peak, foreign reserves have reached their highest level in 17 years, the balance of payments has returned to surplus and public debt has become more manageable relative to the size of the economy.
In the energy sector, crude oil production has recovered to about 1.9 million barrels per day, while Nigeria became a net exporter of petrol in March 2026 following increased local refining, particularly by the Dangote Refinery. The report also cited improvements in agriculture, mining, infrastructure and the capital market as evidence of the administration’s ongoing economic reforms.
The NRS concluded that Nigeria has moved from a period of severe economic strain to a more stable position, with improved revenue mobilisation placing the agency at the centre of sustaining the country’s fiscal and economic reform agenda.
