Tax Revenue Hits N21.6trn In H1 As Reforms Boost Economy

Nigeria’s tax revenue surged to N21.6 trillion in the first half of 2026, representing a 49 per cent year-on-year increase from N14.27 trillion recorded in the same period of 2025, as fiscal reforms begin to yield results.

Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, disclosed this yesterday at the Lagos Chamber of Commerce and Industry (LCCI) 2026 Economic Mid-Year Review and Outlook Conference.

Speaking on the theme, ‘Economic Scorecard – Agriculture, Manufacturing and Service Sectors’, Fasua attributed the record collection to fiscal reforms, the digitalisation of the Nigeria Revenue Service, and new levies on key sectors.

He said debt pressure eased in 2025, supported by fiscal resilience, stronger growth and appreciation in the exchange rate.

However, he noted that spending in the 2025 financial year increased due to a higher wage bill following the minimum wage adjustment, rising interest payments, and increased capital spending by subnational governments.

Also speaking, the chief executive officer of the Centre for Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that failure to improve manufacturing competitiveness would carry significant economic costs.

He said weak industrial output would lower economic growth, drive unemployment and increase import dependence, saying that “with lower economic growth, industrial output and productivity remain below potential, limiting national income and prosperity.”

Yusuf said that high import demand and weak export diversification would keep pressure on the naira and deplete the nation’s reserves.

He cautioned that without a competitive environment, manufacturers may redirect new capital to countries with lower costs, and Nigeria could lose opportunities under the African Continental Free Trade Area, AfCFTA, with local firms ceding regional market share to more competitive African producers.

He further cited higher inflation, exchange rate instability and persistent fiscal imbalances as factors that increase uncertainty and discourage long-term industrial investment.

“Competitive companies are built, not inherited. The firms that lead tomorrow are those that invest, innovate, improve and collaborate today,” he said.

The president of LCCI, Engineer Leye Kupoluyi, said the first half of 2026 has seen mixed trends across reform, resilience and recovery.

“The past few years we have tested households, businesses, and institutions alike. History teaches us that economies do not transform in moments of comfort, but in periods of challenge, when difficult choices are made, reforms are sustained, and confidence is deliberately rebuilt,” he said.

Kupoluyi noted that amid rising uncertainty, supply chain disruptions, tariff wars, geopolitical tensions, fluctuating oil prices and threats to food security, the business community needs economic intelligence to inform decisions.

He reaffirmed that “the LCCI remains unwavering in its belief that sustainable economic growth must be private-sector-led, productivity-driven, and people-centred.”