The Nigeria Revenue Service generated ₦21.6 trillion in the first half of 2026, representing a 49 per cent year-on-year increase, according to an economic report obtained from the Presidency.
The report, titled Economic Snapshot Report 2023 vs 2026, reviewed Nigeria’s economic performance since President Bola Tinubu assumed office in May 2023 and attributed the revenue growth to tax reforms, digitalisation of tax administration and changes in oil revenue remittances.
According to the report, total tax collections rose from ₦12.3 trillion in 2023 to ₦21 trillion in 2024 and ₦28.3 trillion in 2025.
It said the ₦21.6 trillion collected in the first six months of 2026 represented a 49 per cent increase over the amount recorded within the same period in 2025.
The report also stated that 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.
It attributed the increase to the digitalisation of tax systems, including the national e-invoicing system rolled out to large taxpayers, and the implementation of four new tax reform laws which took effect on January 1, 2026.
The laws are the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Establishment Act and the Joint Tax Board Establishment Act.
The report also said the transformation of the Federal Inland Revenue Service into the Nigeria Revenue Service expanded the agency’s mandate by bringing in non-tax revenue streams previously collected by other agencies, thereby creating a central revenue consolidation system.
It further credited Executive Order 9, signed in February 2026, with boosting monthly Federation Account receipts by changing the remittance process for upstream oil and gas revenues.
According to the report, the order requires upstream oil and gas operators to remit royalties, taxes and production-sharing-contract profit oil directly and fully into the Federation Account, rather than allowing deductions or netting-off at source before the money reaches the Treasury.
The Presidency report said the impact was immediate, as monthly Federation Account receipts rose by 60 per cent from ₦1.8 trillion in February 2026 to ₦2.88 trillion in March 2026.
It described the order as one of the administration’s most effective revenue-side reforms, saying it closed a structural leakage point that had, for years, allowed part of Nigeria’s oil-sector earnings to bypass the federally distributable pool.
The report added that investment in staff training, recruitment and digital tools under the current leadership of the revenue agency also contributed to the improved collections.
However, it noted that Nigeria still has significant room to grow its tax revenue, as the country’s tax-to-GDP ratio remains below the Federal 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 report recommended that the Presidency and the Nigeria Revenue Service seek legislative backing for Executive Order 9 by incorporating its provisions into the Nigeria Tax Administration Act or future amendments to the Petroleum Industry Act.
It said this would help preserve the gains in Federation Account revenues beyond the lifespan of the executive order.
Beyond revenue mobilisation, the report highlighted broader economic changes recorded since May 2023.
It said external reserves increased from $3.99 billion to $50.11 billion, 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 stated that domestic refining capacity expanded from 30,000 barrels per day to 700,000 barrels per day, enabling Nigeria to record its first net petrol export in March 2026.
It further said annual capital importation increased from $3.9 billion in 2023 to $23.22 billion in 2025, while the Nigerian Exchange’s market capitalisation rose from ₦30.36 trillion to ₦155 trillion.
The Nigeria Revenue Service had earlier set a revenue target of ₦40.7 trillion for 2026, relying on stronger non-oil collections, expanded compliance, automation and stricter enforcement.
The target represents about 44 per cent increase from the ₦28.29 trillion collected in 2025 and more than six times the ₦6.4 trillion recorded in 2021, reflecting the Federal Government’s drive to boost domestic revenue and reduce reliance on borrowing.