NRS eyes N40.71trn revenue in 2026 after exceeding 2025 goal

THE Nigeria Revenue Service (NRS) has set a bold revenue target of N40.71 trillion for 2026, marking a significant expansion of the federal government’s domestic revenue ambitions. The new goal follows the agency’s strong performance in 2025, when it exceeded its revenue target by 12 percent, signalling growing confidence in the country’s evolving tax and revenue framework.

The 2026 projection represents a 44 percent increase over the N25.2 trillion revenue target approved for 2025. Officials say the higher benchmark reflects not only improved collection capacity but also the expanded responsibilities now assigned to the NRS as a central revenue coordinating institution.

The announcement was made at the opening of a two-day NRS management retreat in Abuja, themed ‘Designed to Adapt, Built to Deliver.’ Speaking at the event, Executive Chairman of the service, Dr. Zacch Adedeji, disclosed that the agency recorded N28.3 trillion in revenue in 2025, surpassing its original target by a wide margin.

Represented by the executive director in charge of the Government and Large Taxpayers Group, Ms. Amina Ado Kurawa, Mr Adedeji challenged managers and staff to move beyond traditional mindsets that may limit performance. According to him, the credibility of Nigeria’s revenue system and confidence in the broader economy depend heavily on the professionalism, transparency, and adaptability of the NRS.

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He warned that rigid leadership beliefs can undermine reform efforts, noting that institutional success is often shaped by unseen assumptions about authority, people, and change. Drawing from a Harvard Business Review article entitled ‘The Hidden Beliefs That Hold Leaders Back,’ Mr Adedeji said many leaders fail not because they lack intelligence or strategy, but because they carry limiting ideas that quietly influence their choices.

“The Nigeria Revenue Service will not be defined by what we say at this retreat,” he said. “It will be defined by what we become after we leave this room.”

Strong performance across oil and non-oil sectors

In 2025, total oil tax revenue reached N6.8 trillion, achieving 95 percent of the N7.2 trillion target for the sector. Both oil and non-oil tax streams recorded notable growth, with oil revenue rising by 19 percent year-on-year and non-oil collections increasing by 35 percent.

Further details were provided in a statement issued by the Special Adviser on Media to the NRS chairman, Dr. Dare Adekanmbi, quoting Kurawa. According to the statement, oil tax revenue in 2025 stood at N6.6 trillion, up from N5.8 trillion in 2024, reflecting sustained recovery and improved monitoring.

Non-oil revenue also showed strong momentum, climbing to N21.5 trillion in 2025, compared with N15.9 trillion in the previous year. This growth, Kurawa said, was driven by administrative reforms, expansion of the withholding tax framework, deeper digitalisation of tax processes, enhanced compliance systems, and stricter enforcement strategies.

Officials believe these measures have helped widen the tax net and reduce leakages, especially among large and medium-scale taxpayers.

Expanded mandate fuels higher expectations

The 44 percent increase in the 2026 revenue target, the NRS said, is largely tied to its new role as a national revenue system integrator. Under the expanded mandate, the service will now also collect certain revenues, including royalties previously handled by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

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This shift is intended to improve coordination, reduce duplication, and strengthen oversight across Nigeria’s revenue-generating agencies.

Calls for domestic consumption and fiscal discipline

Also addressing the retreat virtually, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, urged Nigerians to prioritise locally produced goods and services, arguing that stronger domestic consumption would help reduce revenue losses and strengthen the economy.

Mr Edun highlighted global financial imbalances, noting that in 2024, developing countries paid $163 billion in debt servicing, while receiving only $42 billion in overseas development assistance. He added that foreign direct investment and private capital inflows totalled just $97 billion, meaning more money flowed out of developing economies than came in.

“This shows clearly that what we do for ourselves internally will matter more than what comes from outside,” he said.

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The minister reaffirmed the government’s commitment to fiscal reforms and revenue mobilisation, commending the NRS for its pivotal role in strengthening public finances.

Reform depends on execution, stakeholders say

Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, stressed that the success of ongoing tax reforms will depend on disciplined, transparent, and consistent execution of existing laws.

He warned that Nigeria’s continued reliance on volatile oil revenues leaves the economy exposed to external shocks, while rising public expenditure demands stable and predictable domestic revenue.

According to Tegbe, history will judge the current reforms not only by how much revenue they generate, but by whether they restore trust between the state and its citizens.

He concluded that the NRS is more than just another government agency, but the backbone of Nigeria’s revenue coordination system and a key driver of sustainable economic growth.