NRS Targets N40.7trn Revenue In 2026

Nigeria Revenue Service (NRS) has set a revenue target of N40.711 trillion for 2026, representing a 44 per cent increase over the N28.289 trillion generated in 2025.

The projection underscores the agency’s strategy to deepen fiscal sustainability through stronger non-oil revenue mobilisation and expanded compliance efforts.

According to the NRS, non-oil revenue remains the primary growth engine, with collections expected to rise by 37.9 per cent in 2026 to N24.836 trillion. The anticipated growth will be driven largely by Company Income Tax (CIT), Value Added Tax (VAT), and the Development Levy.

The integration of royalty revenue into the revenue framework also reflects the NRS’ expanded mandate and the establishment of a new and significant revenue stream.

The service noted that revenue performance has shown sustained upward momentum in recent years, with collections increasing by more than 4.4 times between 2021 and 2025. Year-on-year growth has remained positive, with particularly strong accelerations recorded in the 2021–2022 and 2023–2024 periods, highlighting improving efficiency and compliance across key tax sectors.

NRS executive director, government and target taxpayers, Amina Ado, said achieving the 2026 target would require “enhanced enforcement, expanded compliance efforts, and continued operational excellence under the NRS.” She added that growth is expected to be driven mainly by higher non-oil contributions and royalty revenue streams.

To meet the target, the NRS plans to automate petroleum profit tax, hydrocarbon tax, and royalty assessments, intensify stakeholder engagement on new tax laws, issue clearer regulations and guidelines, strengthen collaboration with sub-national governments and federal MDAs on VAT and withholding tax remittances, improve audit quality, and deploy advanced data analytics using e-invoicing and government contract data.

Speaking at the NRS Leadership Retreat with the theme, “Designed to adapt, built to deliver” in Abuja yesterday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria must urgently deepen fiscal reform and boost revenue mobilisation. He said the global system is retreating from multilateral support, leaving developing countries with fewer funding options.

He noted that in 2024, developing countries borrowed heavily and paid about $163 billion in debt service, far more than they received in aid and foreign investment. He said this reality means Nigeria must rely more on its own domestic resources.

Edun said high global interest rates and repeated economic shocks have increased borrowing costs for poorer countries. He said this has forced many developing nations, including Nigeria, to borrow more while paying higher debt service. He stressed that sustainable revenue generation is essential to reduce debt dependence and fund infrastructure, education, healthcare, and social protection. He said ongoing tax reforms are designed to promote fairness, efficiency, and stronger government finances.

The minister described the Nigerian Revenue Service as central to the reform agenda. He said improved compliance, public trust, and visible benefits of taxation are critical to revenue growth. He called for digitisation, data-driven systems, integrity, and continuous capacity building within the service. Edun said fiscal reform is no longer a choice and must deliver measurable outcomes that support growth, stability, and poverty reduction.

Executive chairman of NRS, Dr Zacch Adedeji, called on the agency’s leadership to embrace deep self-reflection and adaptive leadership as the service enters a new institutional era.

Speaking at the 2026 NRS Management Retreat, Adedeji urged participants to move beyond the comfort of titles, tenure, and long-established routines, stressing that the demands of the moment require a fundamentally new leadership posture.

He described the creation of the NRS as a decisive break from the past, noting that the transition cannot be sustained by legacy structures or past achievements.

According to him, success will depend on the ability of leaders to adapt, stretch beyond familiar practices, and lead with a higher level of excellence. He warned that even well-designed strategies and reform plans can be undermined by unexamined beliefs that shape leadership behaviour and organisational culture.

Drawing from insights in the Harvard Business Review, Adedeji said leadership failures often stem not from a lack of competence, but from hidden assumptions about control, accountability, and authority.

He explained that such beliefs can stifle innovation, create bottlenecks, and discourage openness within institutions. He stressed that leadership should focus on empowerment, trust, and outcomes rather than rigid oversight.

Adedeji also shared personal reflections on how perfectionism and fear of failure influenced his leadership approach, noting that his growth came from recognising that excellence does not require uniformity. He emphasised that leadership is about elevating others, not replicating oneself.

He concluded by urging NRS leaders to approach the retreat with humility and openness, noting that the credibility of Nigeria’s revenue system and broader economic confidence rests on their collective leadership.