Nigeria’s fiscal outlook is set for a historic surge as the Nigeria Revenue Service (NRS) announced a projected revenue target of ₦40.7 trillion for the 2026 fiscal year.
This ambitious figure, revealed during the 2026 NRS Leadership Retreat in Abuja, indicates that the Service expects to significantly outperform the Federal Government’s budgeted revenue estimate of ₦34.3 trillion.
Mrs. Amina Ado Kurawa, the Executive Director for Government and Large Taxpayers at the NRS, attributed this projection to the momentum gained over the last five years, noting that collections have quadrupled since 2021.
While oil revenue is expected to grow by a modest 1.4 percent due to stable production and cautious benchmark pricing, the real engine of growth remains the non-oil sector.
Non-oil collections are projected to jump by nearly 38 percent to reach ₦24.8 trillion, driven largely by Company Income Tax, Value Added Tax (VAT), and the newly integrated royalty revenue stream.
The NRS plans to achieve these figures through a comprehensive digital overhaul. Mrs. Kurawa detailed strategies including the automation of Petroleum Profits Tax and Hydrocarbon Tax assessments, the implementation of e-invoicing, and the use of data analytics to close existing revenue gaps.
By reducing audit timelines and improving the quality of compliance checks, the Service aims to shift from reactive enforcement to a more proactive, efficiency-led framework.
Reflecting on the performance of 2025, the Service exceeded its annual target by 12 percent, collecting ₦28.3 trillion.
This success was fueled by the removal of routine filing extensions and a major organizational restructuring.
Notably, Capital Gains Tax saw exceptional growth in the previous year, primarily resulting from significant divestments within the oil and gas sector.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, placed these domestic targets within a sobering global context.
He pointed out that in 2024, developing nations saw a net outflow of resources, paying more in debt service than they received in foreign aid and investment combined.
This global financial reality, the Minister argued, makes internal revenue mobilization the only sustainable anchor for Nigeria’s economic future.
Echoing this sentiment, the Executive Chairman of the NRS, Dr. Zacch Adedeji, challenged the organization’s leadership to move beyond inherited scripts and old habits.
He emphasized that the future of the NRS rests on adaptability and a shift in leadership culture that values innovation over rigid control.
Adedeji urged his team to focus on revenue system integration, suggesting that success will be measured not just by the final ₦40.7 trillion figure, but by the level of public trust and voluntary compliance within the Nigerian tax system.