The Nigeria Revenue Service (NRS) has set an ambitious revenue target of N40.7 trillion for the 2026 fiscal year, significantly exceeding the N34.3 trillion already approved in the 2026 Appropriation Act signed by President Bola Ahmed Tinubu.
The projection, which is N6 trillion higher than the federal government’s budgeted revenue estimate, was announced by NRS Executive Director (Government and Large Taxpayers), Amina Kurawa, during the service’s Leadership Retreat in Abuja on Tuesday.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, and NRS Executive Chairman, Zacch Adedeji, were present at the event.
Kurawa highlighted that revenue collections had grown more than fourfold between 2021 and 2025, attributing the improvement to stronger enforcement, wider compliance, and enhanced operational efficiency. She said the 2026 target would rely on continued progress in these areas under the new NRS framework.
On oil revenue, she projected modest growth of about 1.4 per cent, assuming stable production levels and slightly lower benchmark prices. The bulk of the anticipated increase is expected from Company Income Tax (CIT) related to oil operations, Petroleum Profits Tax (PPT), and Hydrocarbon Tax.
Minister Edun emphasized that Nigeria must now rely heavily on domestic revenue mobilization, given the sharp decline in external inflows. He pointed out that the country spent $163 billion on debt servicing in recent years while receiving only $42 billion in Overseas Development Assistance (ODA) and $97 billion in Foreign Direct Investment (FDI) — a combined $139 billion, resulting in a net outflow of resources.
“This is the harsh financial reality we face,” Edun said. “Developing countries are sending more money out than they are receiving. Internal fiscal effort and domestic revenue mobilisation must now be the main anchor of fiscal sustainability.”
NRS Chairman Zacch Adedeji urged service leaders to abandon old routines and comfort zones, describing the NRS as a new institutional era that demands fresh thinking, innovative leadership, and full commitment to meeting the ambitious target.
Meanwhile, the Chartered Institute of Taxation of Nigeria (CITN) stressed that the success of the new tax reform laws — which took effect on January 1, 2026 — will hinge on effective interpretation, implementation, and communication to taxpayers.
CITN President/Chairman of Council, Innocent Ohagwa, speaking at the presentation of practice licence certificates to tax professionals in Lagos, described the reforms as ambitious and aligned with global best practices in efficiency, fairness, and transparency.
Ohagwa urged members to uphold professionalism, integrity, and competence, noting that the Nigeria Tax Administration Act, 2025 (Section 33(1)) now allows taxpayers to represent themselves or engage accredited tax agents, elevating the strategic and ethical role of tax professionals.
The NRS projection signals confidence in the impact of the recent tax reforms, but meeting the N40.7 trillion target will require robust enforcement, expanded compliance, and sustained macroeconomic stability to outperform the federal budget estimates for 2026.
