FG targets N40.7tn revenue in 2026
The Federal Government of Nigeria has set an ambitious revenue mobilisation goal for the 2026 fiscal year, unveiling a N40.7 trillion ($40.7tn) revenue target that represents a significant leap from previous collections and a cornerstone of the country’s broader economic strategy. The target — presented by the newly established Nigeria Revenue Service (NRS) at a high-level management retreat — reflects the government’s determination to strengthen non-oil revenue streams, enhance tax compliance, and reduce dependence on volatile oil earnings. 
As Nigeria grapples with structural economic challenges, stabilising public finances and expanding revenue sources is a central policy objective for the administration of President Bola Ahmed Tinubu and his economic team, including Minister of Budget and Economic Planning Atiku Bagudu and the leadership of the NRS. This revenue target will play an important role in shaping budget implementation, public investment and fiscal sustainability over the coming year. 
Background: Revenue Growth and the New Target
At the NRS Management Retreat held in Abuja, the newly formed Nigeria Revenue Service announced that it was aiming to collect ₦40.71 trillion in 2026. That figure is approximately 44 percent higher than the roughly ₦28.29 trillion collected in 2025, marking a dramatic projected acceleration in revenue mobilisation. This represents a major shift in Nigeria’s fiscal strategy, emphasising domestic resource mobilisation and a broad base of revenue contributors beyond the oil sector. 
The NRS highlighted that the growth trajectory in recent years had laid the groundwork for this ambitious target. Revenue figures reportedly rose from ₦6.4 trillion in 2021 to ₦28.29 trillion in 2025, demonstrating steep gains linked to improved tax compliance and systemic reforms. If realised, the move to ₦40.7 trillion would signal sustained growth in government receipts, particularly from non-oil sources. 
Unlike earlier periods where revenue growth was often tied to oil price fluctuations, the NRS argues that the projected increase is rooted more in policy changes, expanded enforcement, automation and deeper compliance improvements, rather than external macroeconomic shocks or exchange-rate effects. 
Drivers of the 2026 Revenue Target
A key pillar of the 2026 revenue strategy is a heightened focus on non-oil revenues, which remain crucial given the historical volatility of oil exports and pricing that has hampered fiscal planning in Nigeria. According to projections presented at the retreat, non-oil revenue could rise from about ₦18 trillion in 2025 to roughly ₦24.84 trillion in 2026, accounting for a substantial part of the overall goal. Oil-related revenue is expected to grow more modestly. 
The NRS has identified several instruments expected to underpin this growth, including:
• Company Income Tax (CIT) and Value Added Tax (VAT) expansion and improved compliance.
• Development Levy and other tax heads that saw strong performance in prior years.
• Automation and digitalisation of tax processes, including improved e-invoicing and real-time data monitoring.
• Enhanced enforcement and audit procedures to broaden the tax base and reduce leakages.
• Strengthened compliance mechanisms and tighter engagement with ministries, departments and agencies (MDAs). 
The NRS also plans a more aggressive approach to petroleum tax and royalty assessments, recognising the need for stronger coordination with the energy sector’s revenue streams. Digital tools and expanded data analytics are expected to improve filing accuracy and accelerate audit turnaround times across all revenue subheads. 
https://ogelenews.ng/fg-targets-n40-7tn-revenue-in-2026
Institutional Change: Formation of the NRS
The revenue mobilisation drive for 2026 has been bolstered by institutional reforms, notably the creation of the Nigeria Revenue Service (NRS) to replace the old Federal Inland Revenue Service (FIRS). This structural shift aims to centralise tax administration, reduce fragmentation and improve operational effectiveness across revenue-generating agencies. 
The push for institutional reform stems from a broader agenda to professionalise revenue collection, enhance accountability and modernise Nigeria’s tax architecture. One key part of this effort has been to reform tax-to-gross-domestic-product ratios, which in Nigeria have historically lagged behind countries with similar economic profiles. Experts have argued for more structural reforms, including integrating tax policy design, administration, and compliance monitoring under a unified agency model. 
Economic Significance and Policy Implications
Achieving the N40.7 trillion revenue target would have far-reaching implications for Nigeria’s public finances. Stronger revenue performance could:
• Reduce fiscal deficits, which have traditionally been sustained through borrowing.
• Provide greater budget space for capital expenditure without overreliance on debt.
• Support investment in public infrastructure, healthcare, education and social services.
• Enhance Nigeria’s creditworthiness and fiscal credibility in the eyes of investors and international partners.
• Enable the government to maintain or expand social safety net programmes. 
However, while the target is seen as achievable by the NRS, it has sparked debate among economists and policy analysts. Some critics argue that Nigeria’s revenue history and structural weaknesses — such as limited formal sector coverage, compliance issues and administrative bottlenecks — may make the target difficult to meet without sustained systemic reforms beyond headline numbers. Other observers have pointed to past experiences where ambitious revenue projections were missed, underlining the need for realistic assessment frameworks. 
Broader Challenges and Opportunities
Despite the optimism underpinning the 2026 target, challenges remain. Nigeria’s tax-to-GDP ratio has long been low by international standards, reflecting structural weaknesses in the economy and a narrow tax base. Expanding tax coverage to more informal sector actors and improving compliance remain high priorities for fiscal policymakers, including those championing the 2026 revenue drive. 
Moreover, external shocks such as global commodity price fluctuations, exchange-rate volatility and geopolitical developments could still influence revenue outcomes, despite efforts to diversify away from oil. These uncertainties mean the government’s revenue strategies will need flexibility and adaptability over the budget year. 
Why the Target Matters
The FG’s 2026 revenue goal of N40.7 trillion is more than a headline number. It encapsulates an ambitious vision for revenue reform, economic resilience and fiscal sustainability after years of dependency on crude oil revenues and periodic deficits. Achieving it would mark a pivotal step toward stabilising Nigeria’s public finance system and building a stronger foundation for sustainable development. 
Whether the target is fully realised will depend on execution, structural reforms and collaborative efforts between government agencies, private sector stakeholders and the Nigerian public. But for now, the announcement signals the government’s intent to pursue a more assertive and modernised revenue-mobilisation agenda. 
https://punchng.com/fg-targets-n40-7tn-revenue-in-2026
FG targets N40.7tn revenue in 2026
