Nigeria’s tax revenue increased by 49% in the first five months of 2026, outperforming government projections as sweeping tax reforms and new levies on key sectors, including petroleum and mining, boosted collections.
According to documents seen by Bloomberg, tax revenue collected by the Nigeria Revenue Service (NRS) rose to N15.8 trillion between January and May 2026, compared to N10.6 trillion recorded during the corresponding period of 2025.
The sharp increase comes as Nigeria implements comprehensive tax reforms aimed at strengthening domestic revenue mobilisation and reducing dependence on borrowing.
Last year, the country enacted major changes to its tax framework as part of a broader strategy to raise the tax-to-GDP ratio to 18% by 2030 from about 13%, according to World Bank estimates.
What the report is saying
Bloomberg reported that the increase in collections was largely driven by stronger receipts from the oil sector and the implementation of new tax measures.
- Excluding newly introduced taxes, revenue still rose by 15% to N12.2 trillion.
- The collections surpassed the government’s baseline growth target of 11.6%.
The figures underscore the early impact of Nigeria’s ongoing fiscal reforms and efforts to broaden the country’s revenue base.
More insights
A breakdown of the data showed that both oil and non-oil sectors contributed to the improved revenue performance.
- Oil-related taxes increased by more than 20% to N3.96 trillion, supported by higher crude oil prices linked to geopolitical tensions in the Middle East.
- Non-oil revenue rose by 12.3% to N8.2 trillion, reflecting stronger collections across various sectors of the economy.
- The figures exclude proceeds from revised personal income tax rates administered by state governments, which took effect from January 1, 2026.
Nigeria’s tax reform programme entered a new phase this year with the implementation of four new tax laws designed to simplify administration and improve compliance.
- The Federal Government recently released transitional guidelines for the implementation of the new tax laws.
Speaking on the release of the Guidelines, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the document provides a framework for managing transitional issues while ensuring that the new laws are not applied retrospectively.
What you should know
In June 2025, President Bola Tinubu signed into law four landmark tax reform bills designed to modernise Nigeria’s fiscal and revenue administration framework. The legislation comprises the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
The new tax laws subsequently came into effect in January 2026, ushering in a new era of tax administration and revenue collection in the country.
In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to simplify compliance and provide a clearer pathway into the formal economy.
