Nigeria’s tax revenue rose by 49 percent in the first five months of 2026, driven by sweeping tax reforms and stronger collections from key sectors of the economy.
According to documents seen by Bloomberg, revenue collected by the Nigeria Revenue Service (NRS) increased to ₦15.8 trillion between January and May 2026, compared with ₦10.6 trillion recorded in the corresponding period of 2025.
The strong performance comes as the Federal Government intensifies efforts to strengthen domestic revenue mobilisation and reduce reliance on borrowing through a series of tax reforms introduced over the past year.
The latest figures show that revenue growth significantly outpaced government expectations. Even after excluding newly introduced taxes, collections rose by 15 percent to ₦12.2 trillion, surpassing the government’s baseline growth target of 11.6 percent.
A breakdown of the data showed that both oil and non-oil sectors contributed to the improved performance. Oil-related taxes increased by more than 20 percent to ₦3.96 trillion, supported by higher crude oil prices amid geopolitical tensions in the Middle East.
Non-oil tax revenue also rose by 12.3 percent to ₦8.2 trillion, reflecting stronger collections across several sectors of the economy.
The revenue boost follows the implementation of four new tax laws that came into effect in January 2026. The reforms are designed to simplify tax administration, improve compliance, and broaden the country’s revenue base.
Last year, Nigeria enacted major changes to its tax framework as part of a broader strategy to raise the tax-to-GDP ratio to 18 percent by 2030 from about 13 percent, according to estimates by the World Bank.
The strong growth in tax collections suggests that the government’s fiscal reforms are beginning to yield results. With higher revenues from both traditional and newly introduced taxes, authorities are hoping to create a more sustainable revenue base to support public spending while reducing pressure on debt financing.
