Nigeria’s Tax Revenue Hits N27.1tn as Collections Surge 113% Under Tinubu Reforms

Nigeria’s tax revenue has more than doubled in less than three years, rising from N12.3 trillion in 2023 to N27.1 trillion by July 2026, according to a report by the Nigeria Revenue Service (NRS).

The latest figures represent a 113 per cent increase and highlight the significant growth in government tax collections since the implementation of several fiscal and tax reforms under President Bola Tinubu’s administration.

The NRS attributed the increase to the digitisation of the tax system, the introduction of four new tax reform laws, changes within the revenue service and an executive order designed to close loopholes and improve tax compliance.

In its internal assessment of the Nigerian economy, the revenue authority said the country was gradually moving away from the severe macroeconomic pressures experienced in previous years towards a more stable and resilient economic position.

The agency linked the improvement to the economic reforms implemented under the administration’s Renewed Hope Agenda, while acknowledging that the early stages of the reforms created significant difficulties for households and businesses.

According to the NRS, the Tinubu administration inherited four major economic challenges that had weakened government revenue and constrained economic growth. These included an unsustainable fuel subsidy system, an opaque foreign exchange regime, declining performance in the oil sector and a tax base that remained significantly below its potential.

The revenue service said the subsequent reforms had begun producing measurable changes across several areas of the economy.

One of the most notable developments has been the increase in tax revenue. Collections have risen from N12.3tn in 2023 to N27.1tn as of July 2026, which the NRS said reflected improvements in tax administration, digitalisation and efforts to close revenue leakages.

The agency also pointed to developments in the oil industry, where crude production reportedly increased from between 1.2 million and 1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026.

The July figure was equivalent to about 104 per cent of Nigeria’s OPEC quota, according to the report.

Higher oil production is particularly significant for Nigeria because crude remains a major source of foreign exchange and government revenue.

The NRS also highlighted the impact of the government’s naira-for-crude arrangement with the Dangote Petroleum Refinery and other domestic refineries. It said the policy had contributed to Nigeria’s transition from a long-standing dependence on imported petroleum products towards becoming a net exporter of refined petroleum products.

The development has also attracted attention from other African countries, with Ghana reportedly considering a similar approach for its petroleum sector.

Nigeria’s external reserves have also improved considerably, according to the report. The NRS said unrestricted reserves rose from $3.99 billion in 2023 to $51.9 billion by July 2026, describing the figure as the highest level recorded in 17 years.

The country’s balance of payments also reportedly improved from a deficit of $3.34 billion to a surplus of $2.38 billion in the first quarter of 2026.

Nigeria’s trade position strengthened during the same period, moving from a marginal N44.7 billion surplus to N7.55 trillion in the first quarter of 2026.

The composition of exports also changed, with non-crude oil products recording significant growth. Exports of other petroleum products, excluding crude oil, rose by 51 per cent year-on-year to N6.78 trillion in the first quarter of 2026.

The NRS further identified rising capital inflows as another indication of improving investor confidence.

Annual capital importation increased from $3.9 billion in 2023 to $23.22 billion in 2025, while Nigeria attracted $10.37 billion in capital inflows during the first quarter of 2026 alone.

The revenue service said foreign portfolio investment accounted for a significant portion of the inflows, while foreign direct investment also showed improvement as investors responded to changes in the country’s economic environment.

The Nigerian capital market has also expanded sharply during the period under review. The NRS said the market capitalisation of the Nigerian Exchange increased from N30.36 trillion in 2023 to approximately N161 trillion in 2026.

According to the agency, the growth has created significant wealth for Nigerians participating in the stock market and was supported by improved macroeconomic confidence, bank recapitalisation and increased domestic institutional investment.

The government’s compressed natural gas programme was another area highlighted in the report.

The NRS said Nigeria had no large-scale CNG conversion programme three years ago but had recorded significant progress following the removal of the petrol subsidy. By 2026, more than 100,000 vehicles had reportedly been converted to CNG, while more than $2 billion in investment had been mobilised and over 10,000 jobs created.

The revenue service estimated that CNG could reduce vehicle operating costs by between 40 and 60 per cent compared with petrol.

The report also touched on agriculture and food security. Following the declaration of a state of emergency on food security in July 2023, the government introduced measures including the release of strategic grain reserves, fertiliser distribution, agricultural mechanisation programmes and the proposed N100 billion National Agricultural Development Fund.

Federal agricultural funding reportedly increased from N228.4 billion in 2023 to N826.5 billion in the 2025 budget.

The NRS cited government data indicating that food prices had fallen by about 50 per cent by March 2026, although it acknowledged that agricultural interventions would require several planting seasons before their full impact could be reflected in production levels.

On public debt, the revenue service acknowledged that Nigeria’s total debt stock had increased substantially, rising from N87.4 trillion in 2023 to N159.28 trillion by late 2025.

However, the agency argued that the debt-to-GDP ratio provides a more meaningful measure of debt sustainability than the debt figure alone.

According to the report, Nigeria’s debt-to-GDP ratio fell from 38 per cent in 2023 to 35.5 per cent in 2025 and 32.3 per cent in 2026. The NRS described this as the first sustained decline in the ratio in more than a decade.

The agency also said debt servicing as a share of government revenue had declined from 68 per cent to an International Monetary Fund-projected 53 per cent.

Despite the improvements highlighted in the report, the NRS acknowledged that Nigeria’s economic recovery has come with significant hardship for citizens and businesses.

The agency described the reforms as difficult and “painful” adjustments but maintained that continued implementation would be necessary to consolidate the gains already recorded.

With tax collections now at N27.1 trillion, alongside higher crude production, stronger external reserves, increased capital inflows and improved trade and balance-of-payments figures, the NRS believes Nigeria is gradually moving towards a more stable economic footing.