Nigeria’s revenue fortunes have witnessed a major shift, with tax collections jumping from N12.3tn in 2023 to N27.1tn by July 2026, according to a report by the Nigeria Revenue Service.
The latest figures show a 113 per cent surge in tax income within less than three years, as the revenue agency attributed the increase to sweeping reforms, digitalisation of tax operations, new tax laws and efforts to shut down loopholes affecting government earnings.
In its internal assessment, the NRS said the country was gradually moving away from severe economic challenges towards a more stable and stronger financial position following a series of reforms introduced by the President Bola Tinubu administration.
“Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026 with the “digitisation of tax systems, four new tax reform laws, the transformation of the revenue service and an executive order that closed loopholes in the system,” the report stated.
“The Nigerian economy has moved decisively from acute macroeconomic distress toward a more stable and increasingly resilient footing,” it added.
The revenue authority credited the development to what it described as Tinubu’s economic management approach and the implementation of policies under the administration’s Renewed Hope Agenda.
According to the report, the government inherited four major economic problems that weakened revenue generation and slowed growth. They included an unsustainable fuel subsidy system, a foreign exchange framework that discouraged investors, a struggling oil sector and a tax base that remained below its potential.
The NRS admitted that the early stages of the reforms came with difficult adjustments but insisted that key economic indicators had started improving.
It pointed to lower inflation, stronger balance of payments figures, rising crude oil output, Nigeria’s emergence as a petroleum product exporter and increased tax collections as signs of recovery.
The agency also highlighted the rise in the minimum wage, saying workers’ earnings had doubled between 2023 and 2026.
It further stated that the number of out-of-school children dropped from 20 million to 18.3 million, citing estimates from the United Nations Children’s Fund.
On the petroleum sector, the NRS said the government’s naira-for-crude arrangement with the Dangote Petroleum Refinery and other domestic refineries had transformed Nigeria’s fuel market.
The report said the policy helped the country move away from decades of dependence on imported petroleum products and become a net exporter.
It added that crude oil production increased from about 1.2 million–1.3 million barrels per day in 2023 to 1.73 million barrels daily by July 2026, representing 104 per cent of Nigeria’s OPEC quota.
The revenue agency noted that higher crude production remained crucial because oil continues to provide a major share of Nigeria’s foreign exchange earnings and public revenue.
The report also revealed a sharp rise in the Nigerian capital market, with market capitalisation of the Nigerian Exchange growing from N30.36tn in 2023 to N161tn in 2026.
The NRS said the development reflected improved investor confidence, bank recapitalisation and increased domestic institutional investments.
Nigeria’s external reserves also recorded a major increase, rising from $3.99bn in 2023 to $51.9bn by July 2026 — the highest level in 17 years, according to the report.
The agency said the country’s balance of payments 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 within the same period.
It added that exports of petroleum products excluding crude oil increased by 51 per cent year-on-year to N6.78tn in the first quarter.
The NRS further stated that investor confidence had improved, with annual capital inflows rising from $3.9bn in 2023 to $23.22bn in 2025, while Nigeria attracted $10.37bn in the first quarter of 2026 alone.
The report also highlighted the expansion of the compressed natural gas programme, saying the initiative had grown significantly since the removal of petrol subsidy.
According to the agency, Nigeria had no major CNG programme three years ago, but by 2026 more than 100,000 vehicles had been converted, attracting over $2bn in investment and creating more than 10,000 jobs.
The NRS estimated that CNG adoption could reduce fuel expenses by between 40 and 60 per cent, noting that some commercial operators had cut monthly fuel costs from about N50,000 to N18,000.
On agriculture, the report recalled the government’s declaration of a food security emergency in July 2023 and subsequent interventions, including grain reserve releases, fertiliser distribution, agricultural funding and mechanisation projects.
It said agricultural allocations increased from N228.4bn in 2023 to N826.5bn in the 2025 budget, while food prices reportedly declined by about 50 per cent by March 2026.
However, the NRS acknowledged that agriculture would require more time before the impact of government investments fully reflects in production.
On public debt, the agency admitted that Nigeria’s debt stock rose from N87.4tn in 2023 to N159.28tn in late 2025.
But it argued that the debt situation should be measured against the size of the economy, stating that the debt-to-GDP ratio declined from 38 per cent in 2023 to 35.5 per cent in 2025 and 32.3 per cent in 2026.
The revenue service described the decline as the first sustained reduction in more than a decade.
It also said debt servicing as a percentage of government revenue dropped from 68 per cent to an International Monetary Fund projection of 53 per cent.
The NRS concluded that the combination of rising tax income, stronger oil production, increased foreign investment, growing reserves and improved trade figures showed that Nigeria was gradually recovering from the economic pressures that followed the early reforms.
The agency, however, acknowledged that the gains came after what it described as “painful” adjustments, stressing that sustained implementation of the reforms would be needed to protect the progress achieved.
Don’t Miss Out! Join our WhatsApp Channel for instant news updates. Click here to join
ALSO READ:
