Tax revenue hits N27tn after 113% surge – Report

Nigeria's tax revenue has seen a dramatic surge of 113 percent in less than three years, climbing from N12.3 trillion in 2023 to N27.1 trillion as of July 2026. The Nigeria Revenue Service (NRS) attributes this sharp increase to a multi-pronged strategy including the digitization of tax systems, the enactment of four new tax reform laws, a transformation of the revenue service itself, and an executive order designed to close existing loopholes.

In an internal report, the NRS asserted that Nigeria is transitioning from a period of severe macroeconomic distress towards a more stable and resilient economy. This shift is presented as a direct result of difficult reforms implemented under President Bola Tinubu's administration, aligning with the "Renewed Hope Agenda."

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Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026 with the “digitisation of tax systems, four new tax reform laws, the transformation of the revenue service and an executive order that closed loopholes in the system.

The revenue authority identified four major economic distortions inherited by the administration that had previously undermined revenue and growth: a fiscally unsustainable fuel subsidy regime, an opaque foreign exchange system, a non-performing oil sector, and a tax base significantly below its potential. While acknowledging that the initial impact of the reforms caused economic difficulties, the NRS maintains that key economic indicators have since begun to improve.

Evidence cited for this recovery includes falling inflation, a turnaround in the balance of payments, increased crude oil production, Nigeria becoming a net exporter of petroleum products, and the doubling of tax collections. The report also noted a doubling of the minimum wage between 2023 and 2026 and a decline in the number of out-of-school children, attributed to government policies. Furthermore, a naira-for-crude arrangement with domestic refineries, including the Dangote Petroleum Refinery, has shifted Nigeria's petroleum trade position from net importer to net exporter.

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The Nigerian economy has moved decisively from acute macroeconomic distress toward a more stable and increasingly resilient footing.