Nigeria’s tax revenue has more than doubled in less than three years, climbing from N12.3tn in 2023 to N27.1tn by July 2026, according to the Nigeria Revenue Service (NRS). The 113 per cent increase marks one of the most significant improvements in government revenue collection since the current administration began its economic reforms, with the NRS attributing the growth to the digitisation of tax systems, new tax laws and efforts to shut loopholes in revenue collection.
In its latest internal report on the state of the Nigerian economy, the NRS said the country was gradually moving away from the severe economic pressures experienced in recent years. The revenue agency pointed to reforms targeting fuel subsidies, foreign exchange distortions, the oil sector and Nigeria’s historically narrow tax base. While acknowledging that the reforms initially created significant economic hardship, the NRS said several indicators had since started showing signs of improvement, including inflation, crude oil production, trade and the balance of payments.
The report also highlighted stronger oil production and changes in Nigeria’s petroleum trade. Crude production reportedly rose from about 1.2–1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026, equivalent to 104 per cent of Nigeria’s OPEC quota. The NRS also credited the naira-for-crude arrangement involving the Dangote Petroleum Refinery and other domestic refineries with helping Nigeria shift from a long-standing dependence on imported petroleum products toward becoming a net exporter.
Beyond tax and oil revenue, the NRS pointed to stronger activity across Nigeria’s financial markets and external accounts. Market capitalisation on the Nigerian Exchange reportedly rose from N30.36tn in 2023 to N161tn in 2026, while external reserves climbed from $3.99bn to $51.9bn as of July 2026. Capital importation also increased significantly, rising from $3.9bn in 2023 to $23.22bn in 2025, with $10.37bn recorded in the first quarter of 2026. The report said the figures reflected improving investor confidence and a changing economic environment.
Despite the progress highlighted in the report, the NRS acknowledged that Nigeria still faces major challenges and that the recovery has come with painful adjustments. Total public debt increased from N87.4tn in 2023 to N159.28tn in late 2025, although the debt-to-GDP ratio reportedly fell from 38 per cent to 32.3 per cent in 2026. The revenue service maintained that higher tax collections, stronger oil production, increased investment and improved external balances suggest the economy is gradually becoming more resilient, but stressed that sustained reforms will be necessary to turn the recent gains into long-term economic stability.
source: punch
