- Digital tax administration, new tax laws and oil revenue reforms boost government collections
- Nigeria Tax Act;
- Nigeria Tax Administration Act;
- Nigeria Revenue Service (Establishment) Act; and
- Joint Tax Board (Establishment) Act.
- 2023: ₦12.3 trillion
- 2024: ₦21 trillion
- 2025: ₦28.3 trillion
- First half of 2026: ₦21.6 trillion
- expanded taxpayer compliance;
- greater automation of tax administration;
- stronger enforcement activities;
- broader non-oil revenue mobilisation; and
- continued implementation of recent tax reforms.
NRS Collects ₦21.6 Trillion in Six Months. Nigeria’s ongoing tax reform programme is beginning to deliver measurable fiscal results, with the Nigeria Revenue Service (NRS) generating ₦21.6 trillion during the first six months of 2026, according to a new Economic Snapshot Report released by the Presidency.
The figure represents a 49% increase compared to the corresponding period of 2025 and reflects the impact of a broad package of tax administration reforms introduced over the past three years.
The report suggests that stronger tax administration, expanded digital systems and legislative reforms, not higher tax rates alone, have become the major drivers of revenue growth.
Digital Tax Administration Delivers Results
According to the report, one of the biggest contributors to higher collections has been the continued digitalisation of Nigeria’s tax administration system.
Government officials attribute much of the improvement to initiatives such as the rollout of electronic tax administration platforms, expanded automation of tax processes and the implementation of a national e-invoicing system for large taxpayers.
These reforms are intended to improve compliance, reduce revenue leakages and make tax administration more efficient.
Analysts say increased digitalisation is also providing tax authorities with better visibility over business transactions and improving voluntary tax compliance.
NRS Collects ₦21.6 Trillion in Six Months: Four New Tax Laws Strengthen Revenue Collection
The report also links the strong revenue performance to the implementation of Nigeria’s new tax reform legislation, which came into effect on 1 January 2026.
The reforms include:
Together, the new laws provide a modern legal framework for tax administration while expanding the powers and operational mandate of the Nigeria Revenue Service.
The reforms are also expected to improve coordination between tax authorities and simplify compliance for taxpayers over time.
Transformation from FIRS to NRS Expands Revenue Base
Another major factor identified in the report is the transition from the former Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service.
Unlike its predecessor, the NRS now oversees a broader range of government revenues, including certain non-tax revenue streams that were previously collected by different government agencies.
The report notes that this consolidation has strengthened revenue administration and improved government oversight of collections.
Executive Order 9 Boosts Oil Revenue Remittances
The report also highlights the impact of Executive Order 9, signed in February 2026, which introduced new rules governing the remittance of revenues from Nigeria’s upstream petroleum sector.
Under the Order, oil and gas companies are required to remit royalties, taxes and production-sharing contract revenues directly into the Federation Account rather than deducting certain amounts before remittance.
According to the Presidency, the reform produced immediate results.
Monthly Federation Account receipts reportedly increased from approximately ₦1.8 trillion in February 2026 to ₦2.88 trillion in March 2026, representing a 60% increase.
Officials say the reform has helped close longstanding leakages in oil revenue administration while improving transparency in government finances.
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Non-Oil Revenue Continues to Expand
The report indicates that Nigeria’s revenue base is becoming increasingly diversified.
Non-oil taxes accounted for approximately 76% of total tax collections during the review period, reflecting the government’s continued efforts to reduce dependence on petroleum revenues.
The report also notes steady growth in annual tax collections over recent years:
Nigeria’s Tax-to-GDP Ratio Improves
The stronger revenue performance has also contributed to improvements in Nigeria’s tax-to-GDP ratio.
According to the report, the ratio increased from 10.3% to 13%, although officials acknowledge that further progress is needed to reach the government’s long-term target of 18%.
The Presidency believes wider adoption of electronic invoicing, stronger enforcement and continued implementation of the new tax laws could support additional revenue growth over the coming years.
NRS Eyes Record Collections in 2026
The encouraging first-half performance comes as the Nigeria Revenue Service pursues an ambitious revenue target of ₦40.7 trillion for the 2026 fiscal year.
The target is expected to be supported by:
If current collection trends continue, Nigeria could record another historic year for domestic revenue mobilisation.
Implications for Africa’s Tax Landscape
Nigeria’s experience demonstrates how administrative reforms, digital technology and stronger legal frameworks can significantly improve domestic revenue mobilisation without necessarily introducing new taxes.
As many African countries pursue tax modernisation programmes, Nigeria’s reforms may provide useful lessons on the role of digital tax administration, integrated revenue collection and legislative reform in strengthening fiscal sustainability.
