Nigeria Revenue Service (NRS) has unveiled an ambitious revenue target of N40.711 trillion for 2026, marking a 44% increase from the N28.289 trillion collected in 2025. The projection reflects the government’s determination to strengthen fiscal sustainability by boosting non-oil revenue and enhancing tax compliance nationwide. NRS officials highlighted that this surge is largely expected from Company Income Tax (CIT), Value Added Tax (VAT), and Development Levies.
Non-oil revenue remains the engine of growth, with NRS forecasting a 37.9% rise to N24.836 trillion next year. The service is also integrating royalty revenue into its framework, creating a new and significant stream that signals the agency’s broader mandate. Over recent years, the NRS has demonstrated steady upward momentum, with collections growing more than fourfold between 2021 and 2025, thanks to improved efficiency, compliance, and operational reforms.
To achieve the 2026 target, the NRS plans to automate petroleum profit, hydrocarbon, and royalty taxes, enhance stakeholder engagement, issue clearer regulations, and deploy advanced data analytics, including e-invoicing and government contract monitoring. Executive Director Amina Ado emphasized that success will hinge on enhanced enforcement, operational excellence, and continued compliance efforts, with a strong focus on non-oil and royalty contributions.
Finance Minister Wale Edun, speaking at the NRS Leadership Retreat, noted that relying on domestic resources is now critical as developing countries face rising debt costs and reduced multilateral support. He urged fiscal reform, digitization, and transparent taxation as essential tools for reducing debt dependence and funding key sectors like infrastructure, education, and healthcare. Edun stressed that the NRS is central to these reforms, with public trust, data-driven systems, and visible tax benefits being crucial for sustainable revenue growth.
Dr Zacch Adedeji, NRS Executive Chairman, highlighted the need for adaptive leadership as the agency enters a new institutional era. He encouraged leaders to move beyond legacy practices, embrace innovation, and prioritize empowerment and accountability over rigid oversight. Adedeji emphasized that revenue growth and Nigeria’s broader economic confidence depend not just on strategy but on humble, outcome-focused leadership that elevates teams and drives meaningful change.
source: leadership