Nigeria’s revenue mobilisation efforts recorded a major boost in the first half of 2026, with the Nigeria Revenue Service (NRS) generating N21.6tn, representing a 49 per cent increase compared with the same period in 2025.
The increase was linked to a series of fiscal reforms introduced by the Federal Government, including the digital transformation of tax administration, changes in oil revenue remittance procedures, and the expansion of the revenue agency’s responsibilities.
The figures were contained in the Economic Snapshot Report 2023 vs 2026, a document obtained by BrandIconImage from the Presidency, which reviewed Nigeria’s economic performance since President Bola Tinubu assumed office in May 2023.
The report stated that revenue collections had maintained a strong upward trend over the past three years, rising from N12.3tn in 2023 to N21tn in 2024 and N28.3tn in 2025.
It noted that the N21.6tn collected within the first six months of 2026 marked a significant improvement over the corresponding period of the previous year, reflecting the impact of ongoing reforms in the tax and revenue system.
According to the report, non-oil revenue accounted for 76 per cent of total collections, while Nigeria’s tax-to-GDP ratio improved from 10.3 per cent to 13 per cent.
The Presidency attributed the development to the introduction of four major tax reform laws, the digitalisation of tax processes, the transformation of the Federal Inland Revenue Service (FIRS) into the Nigeria Revenue Service, and changes introduced through Executive Order 9.
The report stated that the reforms had created a more centralised and efficient revenue collection framework.
“The gains are attributable to: (i) The digitalisation of the tax systems, such as the national e-invoicing system rolled out to large taxpayers,” the report stated.
It added that the implementation of four new tax reform laws — the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Establishment Act, and the Joint Tax Board Establishment Act — which took effect from January 1, 2026, had strengthened the country’s revenue architecture.
The document further explained that the transition from FIRS to NRS helped consolidate revenue streams that were previously handled by different government agencies.
“The FIRS to NRS transformation, which folded in non-tax revenue streams previously collected by other agencies, thereby creating a central revenue consolidation system,” the report stated.
Executive Order 9 Boosts Federation Account Receipts
The report highlighted Executive Order 9, signed in February 2026, as one of the major drivers of improved government revenue, particularly from the oil and gas sector.
According to the document, the policy addressed long-standing challenges surrounding upstream oil revenue deductions by requiring operators to remit royalties, taxes and production-sharing contract profit oil directly into the Federation Account.
“Signed in February 2026, Executive Order 9 requires upstream oil and gas operators to remit royalties, taxes, and production-sharing-contract profit oil directly and in full to the Federation Account, rather than allowing these sums to be netted off or deducted at source before reaching the Treasury,” the report stated.
The Presidency said the impact of the order was immediate, with monthly Federation Account receipts increasing by 60 per cent.
“The impact was immediate and measurable: monthly Federation Account receipts rose 60 per cent in a single month, from N1.8tn in February 2026 to N2.88tn in March 2026,” it added.
The report described the policy as a major step towards reducing revenue leakages in the oil sector.
It stated that the order “closes a structural leakage point that had, for years, allowed a portion of Nigeria’s oil-sector earnings to bypass the federally distributable pool.”
According to the report, the benefits of the reform are expected to continue as compliance improves, making it “one of the single most effective revenue-side reforms of the administration to date.”
Government Targets Further Improvement in Tax Revenue
Despite the growth recorded so far, the report acknowledged that Nigeria still had significant room to expand its tax base.
It noted that the country’s tax-to-GDP ratio remained below the government’s long-term target of 18 per cent.
“The tax-to-GDP ratio, while already improving, still has room to grow toward the government’s 18 per cent target — representing a clear and achievable runway for the Service to build on its current momentum, particularly as e-invoicing coverage and the new tax laws take fuller effect through 2026 and 2027,” the report stated.
The document recommended that provisions contained in Executive Order 9 should receive legislative backing to ensure the sustainability of the revenue gains.
It suggested incorporating the order’s provisions into the Nigeria Tax Administration Act or future amendments to the Petroleum Industry Act.
Nigeria’s Wider Economic Indicators Improve
Beyond revenue collection, the report highlighted several economic changes recorded since May 2023.
It stated that Nigeria’s external reserves increased from $3.99bn to $50.11bn, while crude oil and condensate production rose from between 1.2 million and 1.3 million barrels per day to 1.9 million barrels per day.
The report also noted that domestic refining capacity expanded from 30,000 barrels per day to 700,000 barrels per day, allowing Nigeria to record its first net petrol export in March 2026.
In the investment sector, annual capital importation increased from $3.9bn in 2023 to $23.22bn in 2025, while the market capitalisation of the Nigerian Exchange rose from N30.36tn to N155tn.
NRS Sets N40.7tn Revenue Target for 2026
The latest revenue performance comes as the Nigeria Revenue Service pursues an ambitious N40.7tn collection target for the full year 2026.
The target, unveiled during the NRS Management Retreat in Abuja, represents a 44 per cent increase from the N28.29tn generated in 2025.
The agency said it would rely on stronger non-oil revenue mobilisation, improved taxpayer compliance, automation, and enhanced enforcement mechanisms to achieve the target.
The government’s broader fiscal strategy is aimed at increasing domestic revenue generation, reducing dependence on borrowing, and strengthening Nigeria’s ability to finance development programmes through internally generated resources.