The Nigeria Revenue Service (NRS), previously known as the Federal Inland Revenue Service (FIRS), has achieved a remarkable milestone in revenue collection, amassing N28.3 trillion in 2025—exceeding its target of N25.2 trillion. This achievement marks a significant progression in the agency’s capability to enhance Nigeria’s revenue generation.
The announcement was made by Amina Ado, Executive Director of the Government and Large Taxpayers Group, on behalf of NRS Executive Chairman Zacch Adedeji, during the opening of a two-day management retreat themed “Designed to Adapt, Built to Deliver” in Abuja.
Ado revealed that the revenue target for 2026 has been set at N40.71 trillion, representing a 44 per cent increase from the previous year’s target. This ambitious goal is reflective of the NRS’s expanded mandate as the foremost integrator of Nigeria’s revenue system.
### Breakdown of Revenue Growth
In detailing the revenue collection figures for 2025, Ado highlighted that non-oil taxes contributed N21.4 trillion—significantly surpassing the anticipated N18 trillion. Oil tax collections totalled N6.8 trillion, achieving 95 per cent of the N7.2 trillion target set for that sector. Both oil and non-oil tax revenues experienced impressive year-on-year growth, with non-oil taxes soaring by 35 per cent and oil tax revenues increasing by 19 per cent.
Specifically, oil tax revenue rose to N6.6 trillion, a 19 per cent increase from N5.8 trillion in 2024. Non-oil revenue surged from N15.9 trillion in 2024 to N21.5 trillion in 2025, driven by various administrative enhancements, including the broadening of the withholding tax system, advancements in digitalisation, improved tax compliance strategies, and more stringent enforcement tactics.
New Mandate and Strategic Focus
Ado emphasised that the 44 per cent target increase for 2026 is rooted in the NRS’s enhanced responsibilities, which now encompass the collection of royalties previously managed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This strategic shift is poised to significantly bolster the agency’s revenue-generating capabilities.
In his address, NRS Chairman Zacch Adedeji urged management and staff to abandon outdated perceptions, stressing that the credibility of Nigeria’s revenue architecture and the nation’s economic confidence rest squarely on their shoulders. He stated, “The Nigeria Revenue Service will not be defined by what we say in this room. It will be defined by who we become after we leave it.”
Emphasis on Domestic Trade
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who participated virtually, called on Nigerians to prioritise locally made products. He asserted that increasing domestic consumption would mitigate revenue losses and help achieve the ambitious revenue targets set by the NRS.
Edun noted the significance of intra-Nigerian trade, stating, “We talk about buying from West Africa or trading with Africa as a whole, but intra-Nigerian trade is critical. We all know what spending in Nigeria does for the economy.”
He pointed out the stark contrast between the debt service paid by developing countries in 2024, amounting to $163 billion, and the overseas development assistance received, which was only $42 billion. Additionally, foreign direct investment and private sector funding combined totalled just $97 billion. His remarks underscored the pressing need for Nigeria to leverage its internal resources for economic growth.
Commitment to Fiscal Reforms
The minister reaffirmed the government’s commitment to implementing fiscal reforms and enhancing revenue mobilisation strategies. This commitment is vital as Nigeria seeks to navigate the complexities of its economic landscape and foster sustainable growth.
Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee, also spoke at the retreat, emphasising the necessity for meticulous execution of tax laws. He highlighted that effective delivery of these laws will be crucial to achieving the NRS’s targets and enhancing Nigeria’s overall tax system.
Conclusion
The Nigeria Revenue Service’s record-breaking performance in 2025, coupled with its ambitious revenue target for 2026, signifies a pivotal shift in Nigeria’s approach to revenue generation. The focus on both oil and non-oil tax revenues, alongside strategic domestic initiatives, positions the NRS as a key player in the nation’s economic revitalisation.
As Nigeria gears up for the challenges ahead, the collective efforts of the NRS, government officials, and citizens will be instrumental in building a robust revenue framework that not only meets targets but also fosters confidence in the nation’s economic future. The path to N40.71 trillion is fraught with challenges, yet it also offers a promising opportunity for growth and development in Nigeria’s economy.
