Nigeria’s tax revenue recorded a remarkable boost in the first half of 2026, reaching N21.6 trillion and marking a 49 percent increase compared to the N14.27 trillion generated during the same period in 2025. The impressive growth highlights the impact of ongoing fiscal reforms and signals improving confidence in the country’s economic management as government efforts to strengthen revenue collection begin to pay off.
The development was revealed by the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, during the Lagos Chamber of Commerce and Industry (LCCI) 2026 Economic Mid-Year Review and Outlook Conference. Speaking on the state of key sectors including agriculture, manufacturing, and services, Fasua attributed the revenue surge to strategic fiscal reforms, the digitalisation of the Nigeria Revenue Service, and the introduction of new levies across major sectors of the economy. He also noted that debt pressures eased in 2025, supported by stronger economic growth, fiscal resilience, and gains in the exchange rate.
Despite the positive revenue performance, Fasua acknowledged that government spending increased significantly during the 2025 financial year. According to him, the rise was driven by a higher wage bill following the implementation of the new minimum wage, increased interest payments, and expanded capital expenditure by state governments. While these costs placed pressure on public finances, he maintained that the economy has shown encouraging signs of stability and recovery.
Adding a note of caution, Chief Executive Officer of the Centre for Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that Nigeria must urgently improve the competitiveness of its manufacturing sector. He explained that weak industrial output could slow economic growth, increase unemployment, and deepen the nation’s dependence on imports. Yusuf stressed that poor export diversification and strong demand for foreign goods would continue to put pressure on the naira and the country’s foreign reserves, potentially limiting long-term economic gains.
Meanwhile, LCCI President, Engineer Leye Kupoluyi, described the first half of 2026 as a period marked by reform, resilience, and gradual recovery. He noted that businesses are still navigating global challenges such as supply chain disruptions, geopolitical tensions, tariff disputes, fluctuating oil prices, and food security concerns. However, he expressed confidence that Nigeria can achieve sustainable growth through private sector leadership, productivity-driven policies, and people-focused economic reforms, emphasizing that lasting economic transformation often emerges from periods of challenge rather than comfort.
source: Leadership
