NRS Celebrates 2025 Record Tax Revenue, Sets Ambitious 2026 Target

By Emmanuel Jonathan

Nigerians’ commitment to paying taxes has produced historic results. In 2025, voluntary compliance propelled the Nigeria Revenue Service (NRS) to collect a record ₦28.3 trillion, exceeding its target of ₦25.2 trillion and setting the stage for an even more ambitious 2026.

The Executive Chairman of NRS, Dr. Zacch Adedeji, while hailing the development recorded in 2025, announced that the service is targeting ₦40.7 trillion in tax and royalty collections for 2026, a 44% increase over last year.

The projection reflects reforms consolidating petroleum and mineral royalties under the NRS, streamlining a process previously handled by over 60 federal agencies, including the Nigerian Upstream Petroleum Regulatory Commission and the Nigeria Customs Service.

“With legislative support, we are confident of achieving this,” Dr. Adedeji said at a stakeholders’ roundtable organized by the House of Representatives Committee on Appropriations in Abuja.

The reforms, anchored in the Nigeria Revenue Service Establishment Act, 2025, signed by President Bola Tinubu, formalized the NRS and launched the most comprehensive tax overhaul in decades. By consolidating fragmented revenue collection, the NRS has strengthened efficiency, reduced compliance burdens, and expanded the tax base, particularly in non-oil sectors.

Finance Minister Mr. Wale Edun emphasized that the reforms aim to reduce reliance on Ways and Means financing and unsustainable subsidy arrangements funded by the Nigerian National Petroleum Company Limited.

Meanwhile, Chairman of the House Committee on Appropriations, Rep. Abubakar Bichi, during the stakeholders’ roundtable organized by the House of Representatives Committee on Appropriations in Abuja, assured that legislative oversight will ensure credibility, transparency, and accountability in revenue collection and enforcement.

Implications for Businesses and Investors

The NRS’s new mandate signals more consistent enforcement, reduced regulatory overlap, and closer scrutiny of non-oil sectors and mineral operators. For investors, the reforms indicate a centralized revenue administration and a broader, more reliable tax base, potentially reducing macroeconomic volatility if targets are met.

Building Trust and Collaboration

Dr. Adedeji, speaking at the Nigeria Deposit Insurance Corporation (NDIC) Annual Strategic Stakeholders Retreat, emphasized that Nigeria’s journey toward a one-trillion-dollar economy depends heavily on trust.

“Strong bank capitalization and effective enforcement give confidence to the system. When people know their funds are safe, whether one naira or billions, they are more willing to save, invest, and participate in nation-building,” he said.

The NRS has also strengthened collaboration with key stakeholders, including a courtesy visit from KPMG executives, who commended the leadership and timely implementation of new tax laws, pledging continued professional engagement in support of national economic growth.

In another strategic engagement, Dr. Adedeji and Minister of State for Finance, Dr. Doris Uzoka-Anite, met with Central Bank of Nigeria Governor, Olayemi Cardoso, to align fiscal and monetary policies, further promoting sustainable national development.

Looking Ahead

With strong momentum from 2025 and a clear vision for 2026, the NRS aims not only to boost domestic revenue but also to strengthen public trust, enhance compliance, and drive national development. As Dr. Adedeji emphasized, “Your compliance strengthens our economy and drives national development.”

Nigeria’s taxpayers can take pride in their role in this historic achievement, and in shaping the country’s economic future.

*Emmanuel Jonathan is a Communications expert based in Abuja