NRS Tax Revenues Jump 113% to N27tn in Three Years — Report

Nigeria’s tax revenue increased by 113 per cent from N12.3tn in 2023 to N27.1tn as of July 2026, according to a report by the Nigeria Revenue Service.

The revenue authority attributed the significant growth to the digitisation of the tax system, the introduction of four new tax reform laws, the transformation of the revenue service and an executive order aimed at closing loopholes within the tax system.

The NRS, in an internal report on the state of the Nigerian economy, said the country was gradually moving away from severe macroeconomic difficulties towards a more stable and resilient economy following a series of reforms implemented by the administration of President Bola Tinubu.

According to the report, the government inherited four major economic challenges: an unsustainable fuel subsidy regime, an opaque foreign exchange system, an underperforming oil sector and a tax base considered to be below its potential.

The agency acknowledged that the initial impact of the reforms created significant economic difficulties but said several key indicators had subsequently shown signs of improvement.

It cited declining inflation, stronger balance of payments, increased crude oil production, improved petroleum product exports and rising tax collections as evidence of economic recovery.

The NRS also highlighted the increase in the national minimum wage, saying it had doubled between 2023 and 2026.

The agency said the naira-for-crude arrangement between the government and the Dangote Petroleum Refinery, alongside other domestic refineries, had contributed to a major change in Nigeria’s petroleum trade position.

According to the report, crude oil production increased from between 1.2 million and 1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026.

The report also pointed to developments in the capital market, noting that the market capitalisation of the Nigerian Exchange rose from N30.36tn in 2023 to N161tn in 2026.

Nigeria’s external reserves also increased from $3.99bn in 2023 to $51.9bn by July 2026, which the NRS described as a 17-year high.

The balance of payments reportedly moved from a $3.34bn deficit to a $2.38bn surplus in the first quarter of 2026, while the trade balance improved from N44.7bn to N7.55tn during the same period.

The NRS said stronger capital inflows, including foreign portfolio and direct investments, further reflected improving investor confidence.