KEY POINTS
- NRS sets ambitious N40.7 trillion revenue target for 2026 following tax reforms.
- Petroleum and mineral royalties now consolidated under the agency.
- Government says reforms aim to replace unsustainable deficit financing practices.
MAIN STORY
The Executive Chairman of the National Revenue Service (NRS), Zach Adedeji, has said recent tax reforms will position the agency to generate N40.7 trillion in taxes and royalties in 2026.
Adedeji disclosed this on Wednesday during a stakeholders’ roundtable organised by the House of Representatives Committee on Appropriations in Abuja.
He explained that the revenue projection followed policy changes transferring petroleum and mineral royalties, alongside other revenue streams, to the NRS.
According to him, the agency’s performance trajectory supports the ambitious target, noting that it exceeded its 2025 revenue goal of N25.2 trillion by generating N28.23 trillion.
He added that collections in 2025 rose by N6.5 trillion compared to 2024, representing a 30.3 per cent increase largely driven by non-oil tax receipts.
THE ISSUES
Nigeria’s fiscal sustainability remains under pressure due to persistent budget deficits, subsidy costs, and heavy reliance on borrowing mechanisms such as Ways and Means financing.
Stakeholders say reforms are necessary to broaden the revenue base, reduce dependence on volatile oil earnings, and strengthen fiscal discipline.
WHAT’S BEING SAID
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, noted that Nigeria previously depended on deficit financing and an under-recovery arrangement by the NNPC to fund petrol subsidies.
He described the system as unsustainable, stressing the need to eliminate distortions and transition to market-driven solutions through tax and fiscal reforms.
Meanwhile, Chairman of the House Committee on Appropriations, Abubakar Bichi, said the roundtable was designed to enable lawmakers scrutinise revenue projections and assess government performance ahead of the 2026 budget.
He emphasised the importance of transparency to ensure Nigerians understand the country’s fiscal direction.
WHAT’S NEXT
Lawmakers are expected to further evaluate the 2026 revenue projections and fiscal assumptions as part of deliberations on the Appropriation Bill.
Stakeholder engagement is also likely to continue to clarify implementation strategies for the new tax reforms.
BOTTOM LINE
With expanded revenue mandates and stronger non-oil tax performance, the NRS is betting on sweeping fiscal reforms to significantly boost government earnings, though success will depend on effective implementation and sustained economic stability.
, Zach Adedeji, has said recent tax reforms will position the agency to generate N40.7 trillion in taxes and royalties in 2026.){kind=link}