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Abdulazeez Abubakar
1 week ago
Overview
NRS targets ₦40.7trn revenue in 2026
Nigeria’s revenue outlook for 2026 is set on a strong growth path as the Nigeria Revenue Service (NRS) has projected a total revenue target of ₦40.7 trillion for the year. This would be built on what it described as “sustained progress recorded over the past five years.”
Meeting the ₦40.7 trillion target in 2026 would mean that the Service would outperform the Federal Government’s budgeted revenue estimate of ₦34.3 trillion for the year.
The projection was disclosed on Tuesday in Abuja by the Executive Director, Government and Large Taxpayers at the NRS, Mrs. Amina Ado Kurawa, during the 2026 NRS Leadership Retreat. She said revenue performance between 2021 and 2025 had improved significantly, with collections rising by more than four times within the period.
She explained that while year-on-year growth is expected to remain positive, success will depend largely on stronger enforcement, broader compliance, and improved operational efficiency under the new NRS framework.
Mrs. Kurawa said oil revenue is expected to grow modestly by about 1.4 per cent in 2026, noting that this reflects stable oil production levels but lower benchmark prices. She added that the projected increase would come mainly from Company Income Tax related to oil operations, as well as Petroleum Profits Tax and Hydrocarbon Tax.
She explained that non-oil revenue would remain the main driver of growth, with collections projected to rise by 37.9 per cent to ₦24.836 trillion in 2026, compared to the ₦21.5 trillion recorded in 2025. Kurawa also disclosed that royalty revenue has now been fully integrated into the national revenue framework for the first time, following the expanded mandate of the Nigeria Revenue Service, creating an additional stream of income for the government.
Within the non-oil segment, she said Company Income Tax, Value Added Tax, and the Development Levy are expected to account for the largest share of revenue growth in 2026.
“To achieve the 2026 target, the Service will continue to engage stakeholders on new tax laws, automate Petroleum Profits Tax, Hydrocarbon Tax, and royalty assessments and payments, issue clear regulations to support compliance, and improve audit quality while reducing audit timelines,” she said.
She explained that quarterly results showed particularly strong performance in the middle of the year, with the Service achieving 129.7 per cent of its second-quarter target and 131.9 per cent in the third quarter, although the first and fourth quarters came in slightly below expectations.
Oil tax revenue in 2025 stood at ₦6.8 trillion, representing 95 per cent of the annual oil revenue target, with average monthly collections of about ₦600 billion. Non-oil taxes performed even better, with collections reaching ₦21.4 trillion, equivalent to 119 per cent of the annual target and an average monthly inflow of about ₦1.5 trillion.
Year-on-year figures showed oil tax revenue grew by 19 per cent from ₦5.8 trillion in 2024 to ₦6.8 trillion in 2025, while non-oil tax revenue jumped by 35 per cent from ₦15.9 trillion to ₦21.5 trillion. Company Income Tax, Value Added Tax, and Petroleum Profits Tax or Hydrocarbon Tax recorded the strongest results, while Capital Gains Tax saw exceptional growth due mainly to divestments in the oil and gas sector.
https://thenationonlineng.net/nrs-targets-%E2%82%A640-7trn-revenue-in-2026/
