ABUJA — The Nigeria Revenue Service (NRS) has officially raised the stakes for the 2026 fiscal year, unveiling a monumental revenue target of ₦40.7 trillion.
This figure, announced during the NRS Management Retreat in Abuja on February 10, 2026, marks a 44% increase over the record-breaking ₦28.23 trillion collected in 2025.
The target underscores the Federal Government’s aggressive pivot toward non-oil revenue as the primary engine for national development, aiming to reduce the country’s long-standing reliance on volatile crude oil markets and expensive external borrowing.
The Revenue Trajectory: From Recovery to Expansion
The NRS’s 2026 goal is not just an increase in numbers; it is a sixfold jump from the ₦6.4 trillion recorded only five years ago in 2021. This “exponential leap” is built on a foundation of consecutive years of over-performance.
| Year | Revenue Target | Actual Collection | Performance % |
| 2024 | ₦19.4 Trillion | ₦21.7 Trillion | 112% |
| 2025 | ₦25.2 Trillion | ₦28.23 Trillion | 112% |
| 2026 (Target) | ₦40.7 Trillion | — | — |
Amina Ado, Executive Director of Government and Large Taxpayers, emphasized that the 2025 success was not merely a byproduct of inflation or exchange rate movements.
“The results were about operational improvements and internal reforms,” she stated, noting that the agency exceeded its goals despite a relatively stable exchange rate environment during the year.
The 2026 Strategy: Pillars of the ₦40 Trillion Drive
To reach this historic milestone, the NRS is deploying a “Zero Tolerance” compliance strategy backed by the Nigeria Tax Act 2025, which came into full effect on January 1, 2026.
1. Non-Oil Dominance
Non-oil taxes (VAT, CIT, and CGT) contributed ₦21.5 trillion in 2025, growing by 35% year-on-year. For 2026, the NRS expects this sector to provide the lion’s share of the ₦40.7 trillion, driven by:
- Expansion of the Tax Net: Identifying and onboarding previously informal high-turnover businesses.
- Minimum Effective Tax Rate (ETR): A new 15% minimum tax on multinationals and large domestic firms (turnover >₦50B) to prevent profit shifting.
2. Structural Automation
The agency is moving toward a “Digital First” compliance model. Mandatory e-invoicing and the integration of Tax Identification Numbers (TIN) with National Identification Numbers (NIN) for all financial transactions are expected to eliminate human bottlenecks and leakages.
3. The 4% Development Levy
A key driver for 2026 is the consolidated Development Levy, which replaces several fragmented charges (Tertiary Education, IT, NASENI, and Police Trust Fund).
This single 4% levy on assessable profits simplifies the compliance burden for medium and large enterprises while ensuring a steady stream of dedicated funding for national infrastructure.
Protecting the Vulnerable: The “Tax Justice” Clause
While the NRS is being aggressive with large corporations, the 2026 framework provides significant relief for the average Nigerian and small businesses:
- Small Business Relief: Companies with a turnover under ₦50 million (and fixed assets <₦250m) are exempt from CIT and Capital Gains Tax.
- Low-Income Exemption: Individuals earning ₦800,000 or less annually now pay 0% personal income tax, a move designed to increase disposable income for over 90% of the workforce.
The Target
The ₦40.7 trillion target is the financial anchor of President Tinubu’s $1 trillion economy ambition. If achieved, it will provide the “fiscal breathing room” necessary to fund the 2026 budget without resorting to the massive deficit financing that has characterized previous years.
However, the success of this target rests on the NRS’s ability to maintain “transparency and accountability,” as stressed by Chairman Zacch Adedeji.
