Tax Reforms Push Nigeria Revenue Service Toward N40.7tn Target

The Nigeria Revenue Service has projected tax and royalty collections of N40.7 trillion for 2026, citing the impact of recent fiscal reforms that centralised revenue streams under the agency.

Executive Chairman Zacch Adedeji announced the projection at a stakeholder session organised by the House of Representatives Committee on Appropriations in Abuja. The figure marks a sharp rise from the N28.23 trillion collected in the previous year.

Adedeji explained that the higher target reflects reforms that transferred petroleum revenues and mineral royalties to the agency, broadening its collection base. He expressed confidence that the new framework, combined with legislative backing, would enable the service to meet the ambitious goal.

He recalled that the agency exceeded its earlier target by a wide margin, recording collections significantly above projections, largely due to stronger performance in non-oil tax segments.

The reforms underpinning the shift were introduced to streamline revenue administration by preventing multiple government bodies from collecting taxes independently. Under the new system, federal taxes are now paid into a single authority, formerly known as the Federal Inland Revenue Service but renamed the Nigeria Revenue Service.

The overhaul followed the signing of tax reform legislation by President Bola Tinubu, laying the foundation for a comprehensive restructuring of Nigeria’s fiscal administration.

At the forum, the finance minister stressed that past reliance on deficit financing and subsidy-related arrangements had become unsustainable. He argued that the reforms are intended to stabilise public finances and promote a transition toward market-based economic structures.

Lawmakers at the session said the engagement allowed them to review revenue performance, scrutinise projections and obtain clarity on fiscal assumptions to ensure transparency in the budgeting process.