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By Adewale Sanyaolu
Nigeria is set to significantly boost domestic revenue, with the newly rebranded Nigeria Revenue Service (NRS) projecting N40.7 trillion in tax and royalty collections for 2026 — up 44 per cent from the N28.23 trillion collected in 2025.
For investors and corporates, the projection signals tighter compliance, centralised revenue administration, and a broader non-oil tax base.
Executive Chairman of Nigerian Revenue Service(NRS), Mr. Zach Adedeji announced the target at a stakeholders’ roundtable organised by the House of Representatives Committee on Appropriations in Abuja.
He attributed the growth to reforms transferring petroleum and mineral royalties to the NRS.
“With legislative support, we are confident of achieving this,” he said.
The reforms consolidate tax collection previously handled by multiple agencies, including the Nigerian Upstream Petroleum Regulatory Commission and the Nigeria Customs Service.
Over 60 federal agencies previously collected revenue in fragmented fashion, creating inefficiencies and compliance burdens, according to the Presidential Fiscal Policy and Tax Reform Committee chaired by Taiwo Oyedele.
The Nigeria Revenue Service Establishment Act, 2025, signed by Bola Tinubu, formalised the NRS, expanded its mandate, and launched Nigeria’s most comprehensive tax overhaul in decades.
The agency enters 2026 with strong momentum, having exceeded its N25.2 trillion target in 2025 by collecting N28.23 trillion, driven largely by non-oil taxes.
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The 2026 target also consolidates petroleum and mineral royalties, broadening the revenue base.
Also speaking at the forum, Minister of Finance, Mr. Wale Edun, said the reforms aim to reduce reliance on Ways and Means financing and unsustainable subsidy arrangements funded by the Nigerian National Petroleum Company Limited.
The shift to market-based fiscal management and stronger domestic revenue mobilisation could improve transparency and macroeconomic predictability for businesses.
Chairman of the House Committee on Appropriations, Rep. Abubakar Bichi, said lawmakers are reviewing the projections to ensure credibility and clarity for the public.
He added that Legislative oversight will determine how aggressively the NRS pursues audits, enforcement, and compliance expansion under its broadened mandate.
For businesses, the implications are clear: more consistent enforcement, reduced regulatory overlap, closer scrutiny for non-oil sectors and mineral operators, and potential relief from macroeconomic volatility if revenue targets are met.
Analysts caution that achieving the ambitious N40.7 trillion will require balancing compliance with economic realities, especially amid tight liquidity and soft consumer demand.
The 2026 revenue target marks a structural reset of Nigeria’s fiscal architecture, centralising tax authority and consolidating revenue streams.
If executed effectively, it could strengthen sovereign credit metrics, boost investor confidence, and create a more predictable business environment. For corporates and investors, the next 12 months will be a key test of Nigeria’s ability to turn reform ambitions into tangible fiscal results.
