Nigeria Sets ₦40.7tr Revenue Target For 2026 Amid Tax Reforms

The Executive Chairman of the Nigeria Revenue Service, NRS, Zach Adedeji, said Nigeria aims to collect 40.7 trillion naira ($55 billion) in taxes, royalties, and other mineral revenues in 2026 following recent tax reforms.

Adedeji stated this during a briefing before the House Committee on Appropriations, which also hosted the President’s economic team, including the Finance and Coordinating Minister Wale Edun and Minister of Budget and National Planning Atiku Bagudu.

“The session reviewed the 2025 budget performance and discussed proposals for 2026.

In light of the tax reforms that transfer petroleum and mineral royalties to the NRS, the total target for taxes, royalty, and other minerals is 40.7 trillion naira,”

“We believe that with the support of the House, we will be able to achieve what we propose.”

For 2025, the NRS set a revenue target of 25.2 trillion naira, an increase of 3.5 trillion from 2024 collections. The agency exceeded the target, collecting 28.23 trillion naira, largely driven by non-oil taxes, which brought in 21.46 trillion naira, 3.4 trillion above projections. Oil taxes, however, fell short by 5.2 percent. Overall, revenue grew 30.3 percent compared with 2024.

Looking ahead, Adedeji forecast 2026 revenue of 32.14 trillion naira from oil-related sources, reflecting an expected increase in oil production from 1.7 million barrels per day in 2025 to 1.8 million barrels per day next year.

Lawmakers questioned the “zero capital performance” in the 2025 budget. Minister Edun said the previous administration relied heavily on ways and means financing and a subsidized petrol arrangement by the Nigerian National Petroleum Company, a practice he described as unsustainable. The government has since halted unchecked borrowing, which reached 30 trillion naira, to restore macroeconomic stability.

Minister Bagudu said 70 percent of 2025 capital allocations were rolled over to 2026.

He added that budget implementation data is drawn from the Accountant General’s office and Ministry of Finance, and that steps are being taken to ensure better funding for the 2026 budget.

Chairman of the Committee, Abubakar Bichi, said the engagement with the President’s economic team was crucial for studying and approving the 2026 appropriation bill.

“We need more information from the NRS Chairman so Nigerians can know what is going on,” he said.

Oduyemi Odumade, Edited By Grace Namiji