Tax reforms, digital automation, and oil revenue overhaul drive 49% growth
By Sandra Kenneth
ABUJA — Aggressive tax reforms, digital automation, and a major overhaul of oil revenue remittances have propelled the Nigeria Revenue Service (NRS) to a record-breaking N21.6 trillion in revenue generation for the first half of 2026. The figure represents a 49 percent year-on-year growth compared to the same period in 2025, according to the federal government’s Economic Snapshot Report 2023 vs 2026 obtained from the Presidency on Monday. Steady Growth Since 2023The report, which tracks Nigeria’s economic trajectory since President Bola Tinubu took office in May 2023, shows a steady upward curve in annual tax collections: 2023: N12.3 trillion 2024: N21 trillion 2025: N28.3 trillion H1 2026: N21.6 trillion already.
Non-Oil Revenue Leads the Way
A breakdown of the H1 2026 performance shows non-oil revenue remains the primary driver, accounting for 76 percent of total collections. This surge has pushed Nigeria’s tax-to-GDP ratio up from 10.3 percent to 13 percent. The document credits the boom to a multi-pronged modernization strategy, including the transition from FIRS to the newly empowered NRS, which now centralizes non-tax streams previously scattered across multiple agencies.
“The gains are attributable to the digitalization of the tax systems, such as the national e-invoicing system rolled out to large taxpayers,” the report noted.
It also cited the implementation of four landmark tax reform laws that took effect on January 1, 2026: Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Establishment Act, and the Joint Tax Board Establishment Act.
Executive Order 9: Game-Changer for Oil Revenue
Beyond digital tools, Executive Order 9, signed by President Tinubu in February 2026, emerged as a major revenue driver. The order mandated upstream oil and gas operators to remit royalties, taxes, and PSC profits directly and fully into the Federation Account, outlawing the practice of deducting costs at source.
The impact was immediate. Monthly Federation Account receipts jumped 60 percent in one month, from N1.8 trillion in February to N2.88 trillion in March 2026.
Still Work to Do
Despite the milestones, the report stressed that Nigeria’s 13 percent tax-to-GDP ratio remains below the federal government’s long-term target of 18 percent. Analysts project more expansion as e-invoicing coverage widens and the new tax laws take full effect through 2027. To safeguard these gains, the report recommended that the Presidency and NRS institutionalize Executive Order 9 by coding it into the Nigeria Tax Administration Act or amending the Petroleum Industry Act (PIA) to insulate oil revenue from leakages.
