Nigeria’s Tax Revenue Surges 49% to N15.8 Trillion in Five Months on Strong Oil and Non-Oil Growth
Nigeria’s tax revenue recorded a sharp increase in the first five months of 2026, rising by 49% year-on-year to N15.8 trillion, according to data reported by Bloomberg. The growth significantly outpaced government expectations, reflecting the early impact of sweeping fiscal reforms and improved revenue collection efforts across key sectors of the economy.
The figures show a strong jump compared to the N10.6 trillion collected during the same period in 2025. The Nigeria Revenue Service (NRS) has set an ambitious target of N40.7 trillion for the full 2026 fiscal year, banking on digital tax systems, expanded enforcement, and broader non-oil revenue mobilisation to strengthen government finances.
A closer breakdown reveals that both oil and non-oil sectors contributed to the revenue surge. Oil-related taxes climbed by more than 20% to N3.96 trillion, supported by higher global crude prices driven in part by geopolitical tensions in the Middle East. Meanwhile, non-oil revenue rose 12.3% to N8.2 trillion, reflecting improved compliance and stronger activity across multiple industries. Even excluding newly introduced taxes, revenue still grew by 15% to N12.2 trillion.
Despite the overall gains, some inconsistencies remain in corporate performance. Company Income Tax (CIT) fell to N1.37 trillion in Q1 2026 from N1.98 trillion a year earlier, according to the National Bureau of Statistics (NBS), suggesting continued pressure on businesses due to inflation, foreign exchange volatility, and rising operational costs. In contrast, Value Added Tax (VAT) collections improved to N2.42 trillion from N2.06 trillion, boosted by digital tax expansion and better compliance.
Economic experts say the figures reflect both progress and caution. Analysts from the Centre for the Promotion of Private Enterprise (CPPE) noted that reforms are beginning to show results, while also acknowledging the influence of higher oil prices on revenue growth. Other economists stressed that while the increase is encouraging, Nigeria must ensure that rising tax collections translate into visible improvements in infrastructure, healthcare, and public services to sustain taxpayer confidence.
source: nairametrics