Nigeria’s tax revenue rises 49% to ₦15.8 trillion in five months – THIS BREAKDOWN

Nigeria’s tax revenues increased by 49% in the first five months of 2026, driven by sweeping tax reforms and increased collections by 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 to ₦10.6 trillion recorded in the corresponding period in 2025.

The strong performance comes from the federal government’s intensified efforts to strengthen domestic revenue mobilization and reduce debt dependence through a series of fiscal reforms introduced last year.

The latest data shows that revenue growth has significantly exceeded government expectations. Even excluding newly introduced taxes, collections rose 15% to ₦12.2 trillion, exceeding the government’s baseline growth target of 11.6%.

An analysis of the data showed that both the oil and non-oil sectors contributed to the improved performance. Oil-related taxes rose more than 20% to ₦3.96 trillion, supported by rising crude prices amid geopolitical tensions in the Middle East.

Non-oil tax revenues also increased by 12.3% to ₦8.2 trillion, reflecting higher collections in several sectors of the economy.

The revenue increase follows the implementation of four new tax laws that took effect in January 2026. The reforms are designed to simplify tax administration, improve compliance and broaden the country’s revenue base.

Last year, Nigeria adopted major changes to its fiscal framework as part of a broader strategy to raise its tax-to-GDP ratio from around 13% to 18% by 2030, according to World Bank estimates.

The strong growth in tax collections suggests that the government’s tax reforms are starting to show results. With increased revenues coming from both traditional and newly introduced taxes, authorities hope to create a more sustainable revenue base to support public spending while reducing pressure on debt financing.