Tax Reforms: NRS Targets N40.7trn Revenue In 2026

Sequel to the tax reforms introduced by the present administration, Nigeria Revenue Service (NRS), formerly known as Federal Inland Revenue Service (FIRS) is targeting N40.7 trillion revenue from taxes, royalties and other minerals in 2026.

The Executive Chairman of NRS, Zach Adedeji, disclosed this at a meeting of the President’s Economic Team with the House of Representatives Committee on Appropriation on Wednesday.

The meeting was convened to discuss the previous performance of the 2025 budget as well as the proposal for 2026.

Adedeji said: “In the light of the tax reforms that transfer petroleum and mineral royalty and other revenue to the NRS, the total target for taxes, royalty and other minerals is N40.7 trillion.

“We believe that with the support of the House that we would be able to achieve what we propose,” he said.

Adedeji said for the year 2025, the revenue target for the Service was N25.2 trillion, an increase of N3.5 trillion compared to actual revenue collected in 2024.

He said the Service has succeeded in 2025 target by collecting N28.23 trillion, which was due to exceptional performance from non oil taxes.

“When you compare 2025 performance to 2024, the service collected N6.5 trillion more that what we did in 2024. That is an increase of 30.3 per cent. This is driven significantly by non oil taxes,” Adedeji stated.

Speaking on the 2026 target, he said: “in the light of the forecast that we have for oil, from that N25.2 trillion that we did last year, we forecasted that we would do N32.14 trillion for 2026 which is N3.85 trillion higher than the actual collection in 2025.”

Adedeji said the increase was forecast on oil related revenue to non-oil and it was due to higher production forecast from 1.7 million per day in 2025 to 1.8 million barrels per day in 2026.

“For the tear 2025, the revenue target for the service was 25.2 trillion, an increase of 3.5 trillion compared to actual revenue collected in 2024. The service has succeeded in 2025 target by collecting 28.23 trillion. This is due to exceptional performance from non oil taxes.

“Non oil taxes exceeded their target by collecting 21.46 trillion an increase of 3.4 trillion. Meanwhile oil taxes fell short of the target by 5.2 percent. Overall the service exceeded it’s target by 3 trillion which is 12 percent compared to the target we had for 2025.

“When you compare 2025 performance to 2024, the service collected 6.5 trillion more what we did in 2024. That is an increase of 30.3 percent. This is driven significantly by non oil taxes.

“For the 2026 target in the light of the forecast that we have for oil, from that 25.2 trillion that we did last year, we forecasted that we would do 32.14 trillion for 2026 which is 3.85 trillion higher than the actual collection in 2025.

“The increase is forecast on oil related fo non oil is due to higher production forecast from 1.7 million per day in 2025 to 1.8 million barrels per in 2026,” he added.

Responding to lawmakers’ concerns over the zero capital performance in the 2025 budget, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said before the administration of President Bola Tinubu, there was a heavily reliance on ways and means financing to cover large fiscal deficit while NNPC funded the petrol subsidy through and under-recovery arrangement.

This approach, he said, was unsustainable, hence the need to correct the major distortion and replace it with the marketzbased solution.

Edun said the president had halted the unchecked ways and means already at N30 trillion, adding that
it was essential for restoring macro-economic stability.

He said the issue of the zero capital performance in the 2025 budget was delegated to the the Minister of State for Finance, who the lawmakers invited to appear before the Committee on Thursday.

Minister of Budget and National Planning, Atiku Bagudu, said in various sessions with the National Assembly, one of the agreements was to move 70 per cent of the capital for 2025 into 2026.

He said on the budget performance feeders, the ministry of budget and planning, including the budget office, rely on the office of the accountant general and Ministry of Finance for data about budget implementation.

“Steps are being taken. The president has demonstrated that he has issued an executive order which we believe is consistent with the agreement reached that 2026 budget that will be coming will have chances of of it being better funded would be put in place,” he said.

In his remarks, Chairman of the House Committee on Appropriations, Hon. Abubakar Bichi, said it was necessary to have the interaction with the team in respect of the 2026 appropriation bill.

“This is for us study and consider and approve the request. We decided to engage the team of the president to discuss the previous performance of the 2025 as well as the proposed 2026.

“We have do decided to engage the NRS Chairman to shed more light on the revenue in terms of the 2026 projections. In 2025 we have achieved about 28 trillion from our revenue, from the target of 25 trillion. We need to have more information from you so that Nigerians can know what is going on,” Bichi added.