Nigeria Revenue Service Targets ₦40.7 Trillion for 2026, Exceeds 2025 Projection

The Nigeria Revenue Service (NRS) has announced an ambitious revenue target of ₦40.7 trillion for the 2026 fiscal year, surpassing the previous year's projection as the agency intensifies efforts to boost government coffers.

The Chairman of the NRS disclosed the target during the agency's budget defence before the National Assembly, highlighting that the service has already exceeded its 2025 revenue collection goals despite challenging economic conditions.

The ₦40.7 trillion target represents a significant increase over the 2025 benchmark and underscores the government's determination to reduce dependence on borrowing and oil revenues. Tax experts say achieving this goal will require aggressive enforcement measures and the expansion of the tax net to capture more informal sector operators.

The NRS has been implementing various reforms aimed at improving revenue collection efficiency, including the deployment of technology solutions for tax administration, strengthened collaboration with other government agencies, and the introduction of incentives for compliant taxpayers.

During the budget defence session, lawmakers expressed concerns about the service's capacity to meet the ambitious target given the prevailing economic headwinds, including high inflation and currency volatility that have affected corporate profitability.

The NRS Chairman assured the legislators that the agency has developed a comprehensive revenue mobilisation strategy that includes plugging leakages, recovering outstanding tax liabilities from high-net-worth individuals and corporations, and broadening the consumption tax base.

Analysts note that Nigeria's tax-to-GDP ratio remains among the lowest globally, indicating significant potential for revenue growth if compliance can be improved. The ₦40.7 trillion target, if achieved, would represent a major step towards fiscal sustainability.

The ambitious revenue projection aligns with the Tinubu administration's broader economic reform agenda, which seeks to create a more resilient and diversified revenue base less vulnerable to fluctuations in global oil prices.

The National Assembly is expected to review the NRS budget proposals alongside other government agencies as part of the appropriation process for the 2026 fiscal year.