Nigeria’s tax revenue jumps 49% to N15.8 trillion in five months

Nigeria’s tax revenue increased by 49% in the first five months of 2026, outperforming government projections as sweeping tax reforms and new levies on key sectors, including petroleum and mining, boosted collections.

According to documents seen by Bloomberg, tax revenue collected by the Nigeria Revenue Service (NRS) rose to N15.8 trillion between January and May 2026, compared to N10.6 trillion recorded during the corresponding period of 2025.

The strong performance comes as the NRS targets N40.7 trillion in revenue for the 2026 fiscal year, leveraging tax reforms, digital tax expansion and stronger non-oil revenue mobilisation to improve government finances.

What the report is saying

Bloomberg reported that the increase in collections was largely driven by stronger receipts from the oil sector and the implementation of new tax measures.

• Excluding newly introduced taxes, revenue still rose by 15% to N12.2 trillion.
• The collections surpassed the government’s baseline growth target of 11.6%.

The figures underscore the early impact of Nigeria’s ongoing fiscal reforms and efforts to broaden the country’s revenue base.

More insights

A breakdown of the data showed that both oil and non-oil sectors contributed to the improved revenue performance.

• Oil-related taxes increased by more than 20% to N3.96 trillion, supported by higher crude oil prices linked to geopolitical tensions in the Middle East.
• Non-oil revenue rose by 12.3% to N8.2 trillion, reflecting stronger collections across various sectors of the economy.
• The figures exclude proceeds from revised personal income tax rates administered by state governments, which took effect from January 1, 2026.

Despite Bloomberg figures, Company Income Tax (CIT) stood at N1.37 trillion in Q1 2026, down from N1.98 trillion recorded in the corresponding period of 2025, according to National Bureau of Statistics (NBS).

Value Added Tax (VAT) collections increased to N2.42 trillion in Q1 2026 from N2.06 trillion a year earlier, supported by stronger compliance and expanding digital tax collections.

Expert reactions 

Fiscal analysts say the figures reflect both structural gains from reforms and cyclical pressures affecting corporate earnings. 

The Centre for the Promotion of Private Enterprise (CPPE) and its Chief Executive Officer, Dr. Muda Yusuf, speaking to Nairametrics, stated, “We are beginning to see the impacts of the tax reforms. I think that is very positive. This means the tax reforms are working. Another thing is this Iran war, which has also pushed up oil prices. And that will also reflect in the associated tax revenue.” 

The Chairman of Alliance for Economic Research and Ethics Ltd/GTE and former Chairman of the Organised Private Sector of Nigeria (OPSN), Otunba Dele Oye, said Nigeria must move beyond celebrating rising tax collections and focus on how effectively the revenue is utilised to deliver tangible economic and social benefits. 

• He said, “We must transition from merely celebrating the quantity of collection to interrogating the quality and utility of these funds. A sustained tax-to-GDP improvement requires that the taxpayer clearly sees the dividends of their compliance—reliable power, functional infrastructure, and quality healthcare. Ultimately, revenue generation without commensurate public service delivery is a recipe for evasion.” 

An Abuja-based public finance economist, Dr. Bode Akinyemi, described the performance as “a clear sign that Nigeria’s tax base is expanding beyond oil dependence.” 

• “The 49% growth is impressive, but the composition matters. Oil-linked gains are still playing a major role, while corporate tax weakness suggests firms are still adjusting to inflation, FX volatility, and higher input costs,” he said. 

What you should know

In June 2025, President Bola Tinubu signed into law four landmark tax reform bills designed to modernise Nigeria’s fiscal and revenue administration framework. The legislation comprises the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The new tax laws subsequently came into effect in January 2026, ushering in a new era of tax administration and revenue collection in the country.

In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to simplify compliance and provide a clearer pathway into the formal economy.