The Nigeria Revenue Service (NRS), the federally collectible revenue coordinating agency, has set a revenue collection target of N40.71 trillion for the fiscal year 2026, representing 44% higher than the target for 2025, following its impressive performance last year.
The revenue agency reported N28.3 trillion collection last year far above the set target of N25.2 trillion for it by the fiscal authorities.
The NRS Executive Chairman, Dr. Zacch Adedeji, disclosed the N40.7 trillion revenue target of the agency on Tuesday during the opening session of a two-day management retreat with the theme “Designed to Adapt, Built to Deliver” held in Abuja.
A statement issued by Special Adviser (Media) to the NRS chairman, Dare Adekanmbi, indicated that the chairman, who was represented by the Executive Director, Government and Large Taxpayers Group, Ms Amina Ado, described the target as feasible given the operational tools at the agency’s disposal.
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Giving a breakdown of the 2025 collection figures, the Executive Director disclosed that non-oil taxes accounted for N21.4 trillion of the collection, higher than the N18 trillion projected while total oil tax collection totalled N6.8 trillion or 95% of the N7.2 trillion target set for the sector.
The tax administrator said that both oil and non-oil tax revenue grew year-on-year by 19% and 35% respectively in the fiscal year under review.
The Director clarified: “For the year 2025, oil tax revenue totalled N6.6trillion, representing a growth of 19 per cent over the N5.8 trillion realised during the corresponding period in 2024.
“Non-oil tax revenue for 2025 exceeded the 2024 total, reaching N21.5 trillion compared to N15.9 trillion for the same period in 2024, representing a growth of 35 per cent.
“This growth was driven by administrative enhancements, broadening of the withholding system, digitalisation efforts, improved tax compliance initiatives and stronger enforcement tactics introduced by NRS”, Ado added
According to her, the 44% increase in the target for the agency in this fiscal year is based on the expanded mandate of NRS to be a revenue system integrator for the country, including the collection of royalty hitherto the responsibility of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), among others
Earlier in his opening remarks, the NRS chairman charged the management and staff members of the agency to do away with old beliefs, stressing that the credibility of Nigeria’s revenue architecture and confidence in the Nigerian economy rest on their hands.
The NRS boss expatiated: “If we walk into the future with rigid beliefs, we will build walls where bridges are required.
“But if we lead with honesty, courage, and an open mind, we will build an institution worthy of this moment.
“The Nigeria Revenue Service will not be defined by what we say in this room. It will be defined by who we become after we leave it”, Adedeji added.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who virtually joined the event, charged Nigerians to rely more on made-in-Nigeria products in order to reduce revenue losses associated with foreign goods consumption.
The minister said: “We talk about buying from West Africa or trading with Africa as a whole, but intra-Nigerian trade is critical. We all know what spending in Nigeria does for the economy; we know what it does for the revenue targets of NRS.
“The debt service that was paid by the developing countries in 2024 was 163 billion dollars, while the overseas development assistance that came in was $42 billion.
“The foreign direct investment and the private sector funding that came in from abroad to developing countries were just $97 billion”, Edun added.
Noting that what developing countries are giving out is more than they are getting through the various categories, the minister maintained that “clearly, it is what we do for ourselves internally that is going to be important at this time.”
Edun, who reiterated the government’s desire to deliver in the areas of fiscal reforms and revenue mobilization, commended the management and staff of NRS for their roles in boosting the revenue generation.
In his remarks, the Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, stressed the need for successful implementation of the tax laws since the quality of tax administration would determine whether the ongoing reforms will succeed or not.
The tax expert pointed out that the country’s continued dependence on volatile oil revenues will expose it to shocks beyond control, adding that rising public expenditure demands stable, predictable, and sustainable domestic revenue.
The NTPIC chairman said: “History will judge this reform not simply by the revenues it generates, but by the trust it rebuilds between the Nigerian state and its citizens.
“It is essential that we are clear about the role of the Nigeria Revenue Service. NRS is not just another agency, it is the nation’s revenue system integrator”, Tegbe stressed.
