Sweeping tax reforms and the digitisation of revenue collection helped Nigeria’s tax receipts climb to N27.1 trillion by July 2026, representing a 113 percent increase from 2023, according to the Nigeria Revenue Service (NRS).
The agency disclosed that tax collections increased by 113 percent from N12.3 trillion in 2023, describing the growth as one of the strongest improvements in the country’s revenue performance in recent years.
According to the NRS, the increase followed the deployment of digital tax administration platforms, the implementation of new tax legislation and institutional reforms designed to widen the tax net, improve compliance and reduce leakages across the collection process.
The revenue agency said technology has become central to its strategy, allowing tax authorities to automate compliance, strengthen monitoring and improve the efficiency of revenue collection nationwide.
The report formed part of the agency’s assessment of Nigeria’s economic performance, where it argued that recent policy reforms have begun to strengthen public finances after a prolonged period of fiscal pressure.
Beyond tax receipts, the NRS pointed to improvements in several macroeconomic indicators, including stronger crude oil production, higher foreign capital inflows, improved external reserves and a return to a balance of payments surplus.
The agency also noted that Nigeria’s petroleum sector has shown signs of recovery, supported by increased crude production and the gradual expansion of domestic refining capacity, which has reduced dependence on imported petroleum products during 2026.
According to the report, higher government revenue has strengthened the country’s fiscal position and provided additional resources for infrastructure development, public services and broader economic programmes.
The NRS also highlighted continued growth in the Nigerian capital market, citing higher market capitalisation and increased investor participation as evidence of improving confidence in the economy.
In addition, the agency said reforms in the foreign exchange market, tax administration and the energy sector have helped improve investor sentiment and support capital inflows into the country.
Despite the stronger revenue performance, the report acknowledged that Nigeria continues to face structural economic challenges, including public debt, inflationary pressures and the need to sustain private-sector investment.
The agency maintained that preserving the gains recorded so far would depend on consistent implementation of ongoing reforms, deeper digitalisation of tax administration and continued efforts to broaden the country’s tax base without placing excessive pressure on compliant taxpayers.
The NRS said the combination of improved revenue mobilisation, stronger economic management and enhanced institutional capacity provides a stronger foundation for long-term fiscal sustainability, while emphasising that continued reform will be necessary to maintain the current growth trajectory.
