Nigeria’s tax collection has climbed sharply in 2026, with the Nigeria Revenue Service (NRS) reporting ₦27.1 trillion in tax revenue within the first seven months of the year as the Federal Government intensifies efforts to expand the tax base and digitise revenue collection.
NRS Chairman, Dr. Zacch Adedeji, disclosed the figure while appearing on Channels Television’s Politics Today, saying the increase reflects the impact of ongoing tax reforms and the digital transformation of the revenue system.
Tax-to-GDP Ratio Records Major Improvement
Adedeji said Nigeria’s tax-to-GDP ratio has increased to 13% from 10.3%, describing the improvement as evidence that the country is beginning to capture more revenue from its economic activities.
According to him, the revenue service’s collection has doubled in nominal terms following the introduction of new tax laws, digital collection systems and measures designed to close loopholes within the tax system.
“The Service’s tax collection has doubled due to the digitisation of tax systems, the four new tax reform laws, the transformation of the revenue service, and an executive order that closed loopholes in the system,” he said.
The latest figure puts 2026 tax collections on course to potentially surpass the ₦28.3 trillion recorded in 2025, although the final annual figure will depend on collections in the remaining months.
Revenue Growth Follows Tax Reform Push
NRS records show tax collections rose from ₦12.3 trillion in 2023 to ₦21 trillion in 2024, before reaching ₦28.3 trillion in 2025.
The latest increase comes amid a broader tax reform programme by the Federal Government, alongside the digitisation of revenue collection and restructuring of the revenue service.
Adedeji said the reforms are aimed not only at increasing government revenue but also at simplifying tax administration and broadening the number of taxpayers contributing to the system.
Nigeria’s Economic Indicators Show Improvement — NRS
Beyond tax revenue, Adedeji pointed to several economic indicators which he said suggest that Nigeria is moving away from the severe macroeconomic pressures experienced after the 2023 reforms.
He said economic growth increased from 2.74% in 2023 to 3.8% in the first half of 2026, while external reserves reached $51.9 billion in July 2026, described as a 17-year high.
Nigeria’s balance of payments also moved from a $3.34 billion deficit to a $2.38 billion surplus in the first quarter of 2026, according to the NRS chairman.
He attributed the improvements to financial-sector reforms, tighter monetary management and measures aimed at improving the overall business environment.
Tax Reform Becomes Central to Revenue Strategy
The Federal Government’s economic reform programme since 2023 has included fuel subsidy removal, foreign exchange reforms, changes to Central Bank financing and tax reforms.
Adedeji said the measures were necessary to address what he described as four major distortions inherited by the Tinubu administration: an expensive fuel subsidy system, an opaque foreign exchange regime, challenges in the oil sector and a tax base below Nigeria’s economic potential.
He argued that the reforms have helped create a more predictable environment for businesses and investors.
Banking Recapitalisation Could Support Investment
The NRS chairman also highlighted the ongoing recapitalisation of Nigerian banks, saying stronger financial institutions would improve the economy’s capacity to provide large-scale financing to businesses.
He said the combination of banking-sector reforms and tax changes could strengthen corporate investment, particularly for capital-intensive and export-oriented companies.
According to Adedeji, improved market efficiency, financial transparency and macroeconomic stability are already contributing to stronger business confidence.
Government Revenue Still Faces a Major Test
Despite the increase in collections, the rapid rise in tax revenue also highlights the government’s growing reliance on domestic revenue to finance public spending and reduce fiscal pressure.
The NRS said the focus going forward would be on sustaining revenue growth while improving tax administration, expanding compliance and reducing leakages.
If the current collection trend continues, Nigeria’s 2026 tax revenue could exceed last year’s record, marking another significant shift in the country’s fiscal landscape.
