TheNigeria Revenue Service(NRS) has unveiled anambitious₦40.7 trillion revenue target for 2026 following sweeping tax reforms that transferred petroleum royalties and other mineral revenues to the agency.
NRS Executive Chairman,Zach Adedeji, disclosed this while appearing before the House of Representatives Committee on Appropriations alongside members ofBola Ahmed Tinubu’s economic team.
2025 Outperforms Targets
Adedeji revealed that the Service exceeded its 2025 revenue target of ₦25.2 trillion, posting ₦28.23 trillion in collections — ₦3 trillion above projection, representing a 12% increase.
Non-oil taxes were the major driver of growth, generating ₦21.46 trillion — ₦3.4 trillion above expectations. Oil tax revenue, however, fell short of target by 5.2%.
Compared to 2024, the Service recorded an additional ₦6.5 trillion in 2025, marking a 30.3% increase largely powered by non-oil receipts.
2026 Projection and Oil Output Boost
For 2026, the NRS is projecting ₦32.14 trillion in revenue — ₦3.85 trillion higher than 2025 collections. The forecast is anchored on expected growth in oil production from 1.7 million barrels per day to 1.8 million barrels per day, alongside gains from ongoing tax reforms.
Lawmakers Question Capital Performs
During the session, lawmakers expressed concerns over what they described as zero capital performance in the 2025 budget.
Minister of Finance and Coordinating Minister of the Economy,Wale Edun, defended the administration’s fiscal strategy. He said the previous reliance on Ways and Means financing — which rose to about ₦30 trillion — and subsidy under-recovery arrangements by the Nigerian National Petroleum Company Limited were unsustainable.
Edun noted that President Tinubu halted unchecked borrowing to stabilise the economy, though it created short-term funding gaps.
Meanwhile, Minister of Budget and National Planning,Atiku Bagudu, disclosed that anagreementhad been reached with the National Assembly to roll over 70% of the 2025 capitalallocationinto 2026 to improve funding performance.
Chairman of the House Committee on Appropriations, Abubakar Bichi, said lawmakers required further clarification on revenue projections toguidedeliberations on the 2026 appropriation bill.
With ₦28 trillion realised in 2025 against a ₦25 trillion target, attention now shifts to whether the bold 2026 revenueambitionscan be sustained amid economic reforms and fiscal restructuring.
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