Federal Government Projects N40.7tn Revenue for 2026 Budget
The Nigeria Revenue Service has set a revenue target of N40.7tn for 2026 as the Federal Government pushes for stronger domestic income and reduced dependence on borrowing.
The target was announced during the agency’s management retreat in Abuja, where officials reviewed recent performance and outlined plans for the coming year.
The figure represents a sharp rise from the N28.29tn collected in 2025 and a major increase from N6.4tn recorded in 2021.
Officials said the growth reflects improved compliance, automation, and tighter enforcement rather than inflation or exchange rate changes.
The Executive Director for Government and Large Taxpayers said the agency exceeded its 2025 target after collecting more than initially projected.
She explained that the progress was driven mainly by operational reforms and better tax administration across sectors.
Revenue records presented at the meeting showed steady growth from 2021 through 2025, with expectations that the upward trend will continue into 2026.
Non-oil taxes are expected to contribute the largest share of the projected revenue because of the uncertainty surrounding oil prices and production.
Projections indicate that non-oil revenue may rise significantly, while oil-related revenue is expected to grow only slightly.
Company Income Tax, Value Added Tax, and development levies are expected to anchor the expansion in collections.
Improved filing compliance, stricter enforcement, digital systems, and internal restructuring were identified as major reasons for recent gains.
Plans for 2026 include wider use of automated tax assessments, faster audits, deeper use of electronic invoicing data, and stronger engagement with government agencies and states.
The head of the agency said the transition to the new revenue structure signals a fresh phase focused on accountability and performance.
Tax policy experts at the retreat also noted that Nigeria’s low tax-to-GDP ratio remains a challenge and stressed the need for more efficient revenue administration to support the country’s fiscal stability.