The Nigeria Revenue Service (NRS) has set an ambitious revenue target of N40.7 trillion for 2026, a substantial increase from the N28.23 trillion collected in 2025, driven by sweeping tax reforms that consolidated collection responsibilities under the agency.
NRS Executive Chairman Zacch Adedeji announced the projection on February 25, 2026, during a stakeholders’ roundtable in Abuja hosted by the House of Representatives Committee on Appropriations. The session brought together key financial sector players to review 2025 performance and scrutinise the 2026 revenue framework.
Adedeji attributed the elevated 2026 goal to recent legislative changes that transferred responsibility for petroleum revenues and mineral royalties to the NRS, alongside traditional non-oil taxes. “With the reforms assigning petroleum and mineral royalties to the NRS, our total target stands at N40.7 trillion,” he stated. “We are confident that, with continued support from the National Assembly, we can achieve this objective.”
He highlighted the NRS’s strong 2025 performance, where the agency exceeded its N25.2 trillion target by generating N28.23 trillion—an additional N6.5 trillion or 30.3% growth over 2024 collections. The increase was primarily fueled by robust non-oil tax performance.
The reforms stem from tax bills passed by the National Assembly in 2025 and signed into law by President Bola Tinubu on June 26, 2025. The legislation centralised federal tax collection under the former Federal Inland Revenue Service, which was officially rebranded as the Nigeria Revenue Service (NRS) in December 2025 under the Nigeria Revenue Service Establishment Act.
Previously, around 60 federal agencies—including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigeria Customs Service—handled various revenue streams. The overhaul aims to streamline administration, reduce leakages, eliminate overlapping functions, and allow agencies to focus on their core regulatory mandates.
Finance Minister Wale Edun, speaking at the roundtable, underscored the broader fiscal context. He noted that past reliance on Ways and Means advances to fund deficits and the unsustainable subsidy regime—previously managed through under-recovery arrangements by the Nigerian National Petroleum Company Limited—created significant distortions. The reforms, he said, are designed to correct these imbalances and transition toward more market-driven and transparent revenue mechanisms.
Chairman of the House Committee on Appropriations, Rep. Abubakar Bichi (APC–Kano), explained that the engagement was intended to provide lawmakers with deeper insight into 2025 outcomes and the basis for the 2026 projections. “We achieved close to N28 trillion in 2025 against a N25 trillion target,” he said. “We need more clarity so Nigerians can fully understand the revenue picture and the rationale behind these figures.”
The N40.7 trillion target for 2026 reflects optimism that the consolidated structure will enhance efficiency, broaden the tax base, and capture previously fragmented revenue streams—particularly from oil, gas, and mining sectors—while supporting non-oil growth.
Stakeholders view the reforms and the NRS’s performance as critical steps toward fiscal sustainability, reduced dependence on borrowing, and stronger public finance management in Nigeria. The National Assembly will now evaluate the projections as part of the 2026 budget approval process.
