Tax revenue hits N27tn after 113% surge – Report

Nigeria's tax revenue has skyrocketed by 113% in the past three years, reaching N27.1tn by July 2026, according to the Nigeria Revenue Service (NRS). The surge is attributed to digitization of the tax system, enactment of new tax reform laws, improvements in the revenue service, and an executive order aimed at closing loopholes.

The NRS emphasized that Nigeria is transitioning from severe macroeconomic distress to a more stable and resilient economy following President Bola Tinubu's administration. The reforms inherited by the government included a fiscally unsustainable fuel subsidy regime, an opaque foreign exchange system, a non-performing oil sector, and a tax base far below its potential.

Despite initial economic difficulties, major indicators such as falling inflation, improved balance of payments, increased crude oil production, and a shift from a net importer to a net exporter of petroleum products have shown recovery. The government's naira-for-crude arrangement with refineries has moved Nigeria from a net importer to a net exporter of petroleum products, while crude oil production has risen to 1.73 million barrels per day, equivalent to 104% of Nigeria's OPEC quota.

The capital market's market capitalization has grown from N30.36tn to N161tn, contributing to wealth creation among Nigerians. External reserves have surged from $3.99bn in 2023 to $51.9bn in July 2026, marking a 17-year high. The balance of payments shifted from a deficit of $3.34bn to a surplus of $2.38bn in the first quarter of 2026.

Improved investor confidence is reflected in increased capital importation and inflows, while the compressed natural gas program has converted over 100,000 vehicles to CNG, reducing fuel costs by 40-60%. Agriculture and food security have also seen progress, with the number of out-of-school children declining from 20 million to 18.3 million.