The Federal Government of Nigeria has set a bold revenue target of ₦40.7 trillion for 2026. Officials say the goal is to boost domestic revenue and reduce dependence on borrowing.
The target, revealed at the Nigeria Revenue Service (NRS) Management Retreat in Abuja on Tuesday, represents a 44 per cent increase from the ₦28.29 trillion collected in 2025 and is more than six times the ₦6.4 trillion recorded in 2021. The sharp growth underscores the government’s commitment to building a more resilient and predictable domestic revenue base.
Executive Director of Government and Large Taxpayers at NRS, Amina Ado, said the strong performance last year provides a solid foundation for 2026. “Our success last year came from non-oil collections and operational improvements, not just inflation or exchange-rate changes,” she said.
Revenue grew steadily from ₦6.4 trillion in 2021 to ₦28.29 trillion in 2025. The NRS aims to maintain this upward trajectory.
Non-Oil Revenue Drives Growth
Non-oil revenue will be the main driver in 2026. Officials project it will rise from ₦18 trillion in 2025 to ₦24.84 trillion next year. Oil-related revenue, by contrast, is expected to increase only slightly to ₦7.3 trillion.
Key contributors include Company Income Tax (CIT), Value Added Tax (VAT), and the Development Levy. Ado highlighted that CIT and VAT exceeded targets in 2025. Capital Gains Tax also spiked due to oil and gas divestments.
The NRS credits its success to better compliance, stricter enforcement, internal restructuring, digitalisation, and automation.
Looking ahead, Ado said achieving ₦40.7 trillion requires more aggressive engagement with government agencies, faster audit turnaround, and automated petroleum tax assessments. E-invoicing and contract data will also play a bigger role.
Leadership and Policy Focus
NRS Chairman Dr. Zacch Adedeji said the transition from the Federal Inland Revenue Service to the NRS marks a new era. “Leadership, not technology or structure alone, will determine our success,” he said.
Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee, added that Nigeria’s low tax-to-GDP ratio remains a structural weakness. He stressed that revenue administration excellence is essential to fiscal stability.
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With rising expenditure pressures and limited borrowing capacity, officials say expanding the tax base is critical. They aim to avoid increasing the burden on compliant taxpayers.
Analysts say the ₦40.7 trillion target sets a high bar and will test the durability of recent reforms. Still, non-oil revenue growth could strengthen Nigeria’s fiscal future and reduce reliance on volatile oil earnings.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
