Nigeria’s tax revenue surges 113% to N27.1tn in three years
Nigeria’s tax revenue rose by 113 per cent in less than three years, increasing from N12.3tn in 2023 to N27.1tn by July 2026, according to the Nigeria Revenue Service.
The revenue authority attributed the increase to the digitisation of the tax system, the enactment of four tax reform laws, the transformation of the revenue service and an executive order designed to close loopholes in tax collection.
Nigeria’s tax revenue rose by 113 per cent in less than three years, increasing from N12.3tn in 2023 to N27.1tn by July 2026, according to the Nigeria Revenue Service.
The revenue authority attributed the increase to the digitisation of the tax system, the enactment of four tax reform laws, the transformation of the revenue service and an executive order designed to close loopholes in tax collection.
The NRS disclosed this in an internal report on the state of the Nigerian economy obtained on Sunday.
The report said the surge in tax collections was among several indicators suggesting that the economy was moving from severe macroeconomic distress towards greater stability and resilience following the implementation of reforms by the President Bola Tinubu administration.
“Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026,” the report stated, attributing the increase to tax-system digitisation, new tax laws, institutional reforms and measures to block revenue leakages.
The revenue service said the government inherited major economic challenges, including an unsustainable fuel subsidy regime, an opaque foreign exchange system, an underperforming oil sector and a tax base it described as far below its potential.
It said the reforms initially created significant economic difficulties but maintained that key indicators had subsequently improved.
The report cited increased crude oil production, improved foreign reserves, a stronger balance of payments position, higher capital inflows and increased tax collections as evidence of the recovery.
Crude oil production, according to the NRS, rose from about 1.2 million–1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026, equivalent to 104 per cent of Nigeria’s OPEC quota.
The report said higher oil production remained significant to government finances because crude oil was still a major source of foreign exchange and public revenue.
It also reported a significant improvement in Nigeria’s external reserves, which rose from $3.99bn in 2023 to $51.9bn by July 2026, described as a 17-year high.
The country’s balance of payments also moved from a $3.34bn deficit to a $2.38bn surplus in the first quarter of 2026, while the trade balance improved from N44.7bn to N7.55tn during the same period.
Capital importation also increased, rising from $3.9bn in 2023 to $23.22bn in 2025, with inflows reaching $10.37bn in the first quarter of 2026 alone.
The NRS said the increase reflected improved investor confidence following the government’s economic reforms.
The revenue authority acknowledged that the reforms had imposed significant short-term pressures on households and businesses but argued that sustained implementation was necessary to consolidate the economic gains.
It said the continued growth in tax collections, alongside stronger oil production, increased reserves and improved external-sector indicators, pointed to a gradual recovery from the economic pressures experienced in the early stages of the reforms.
However, the NRS stressed that further reforms would be required to sustain the gains and strengthen the country’s economic resilience.
