Nigeria Revenue Service Targets N40.7trn in 2026

By Adedapo Adesanya

The Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS), has fixed a collection target of N40.7 trillion for the 2026 fiscal year.

This is hinged on its last year’s record revenue collection of N28.3 trillion, which the Executive Director overseeing Government and Large Taxpayers, Mrs Amina Kurawa, said represents an increase of more than 30 per cent when compared to the N25.5 trillion recorded in 2024.

Mrs Kurawa, while speaking at a staff retreat organised by the service, explained that a bulk of the revenue collected during the period was driven by the non-oil sector.

According to her, the ambitious target for this year will be supported by stronger non-oil revenue contributions and improved collections from royalty-based income streams.

Meanwhile, the Chairman of the agency, Mr Zacch Adedeji, urged staff to raise their performance in the coming year, emphasising that transparency and accountability remain central to the agency’s operations.

The organisation also projected growth in non-oil tax receipts in 2026, with Company Income Tax (CIT), Value Added Tax (VAT), and the Development Levy expected to play leading roles in boosting government revenue.

On June 26, 2025, President Bola Tinubu signed into law a historic package of tax reform legislation, marking the most comprehensive overhaul of Nigeria’s fiscal architecture in decades. The four Acts: The Nigeria Tax Act, Nigeria Revenue Service (Establishment) Act, Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act, seek to streamline revenue administration, enhance compliance, strengthen intergovernmental coordination, and reposition the tax system to support inclusive growth.

By consolidating over a dozen outdated statutes and introducing modern mechanisms for enforcement, digitalisation, and dispute resolution, these reforms are expected to significantly reshape Nigeria’s fiscal future, which will translate to more Nigerians entering the tax base.

For instance, the Nigeria Tax Act, 2025, repeals and consolidates over a dozen federal tax laws into a single unified statute. It replaces legacy laws such as the Companies Income Tax Act (CITA), Personal Income Tax Act (PITA), Capital Gains Tax Act (CGTA), Value Added Tax Act, and the Stamp Duties Act, among others. This consolidation aims to reduce fragmentation, promote consistency, and modernise Nigeria’s tax framework for a digital and globally integrated economy.

Business Post reports that the Federal Inland Revenue Service (Establishment) Act, 2007, was repealed and formally established the NRS as the central authority for the assessment, collection, accounting, and enforcement of federally collectable taxes and other designated revenues.