The Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, announced on Tuesday that the federal government has established a revenue target of N40.71 trillion for the agency for the year 2026. This target represents a significant increase of 44% compared to the N25.2 trillion goal set for 2025.
During a two-day management retreat themed “Designed to Adapt, Built to Deliver” held in Abuja, Adedeji highlighted that the service successfully collected N28.3 trillion last year, which was 12% above its revenue target for that period.
Represented by Ms. Amina Ado Kurawa, Executive Director for Government and Large Taxpayers Group at NRS, Adedeji encouraged the service's management and staff to abandon outdated beliefs. He emphasized that the integrity of Nigeria's revenue framework and the public's trust in the economy depended on their efforts.
Adedeji remarked, “If we approach the future with rigid mindsets, we may create barriers instead of connections where they are needed. However, by leading with transparency, bravery, and an open mindset, we can establish a reputable institution that rises to the current moment.”
He shared insights from a Harvard Business Review article titled “The Hidden Beliefs That Hold Leaders Back,” discussing how many leaders do not fail due to a lack of intelligence or strategy, but rather because of ingrained beliefs that influence their decisions and behaviors.
Adedeji stated, “The Nigeria Revenue Service will not be defined by our discussions in this room; rather, it will be shaped by our actions after we depart.”
A review of 2025's collections showed that non-oil taxes contributed N21.4 trillion, exceeding the projected N18 trillion, while total oil tax revenue reached N6.8 trillion, achieving 95% of the N7.2 trillion target.
Both oil and non-oil tax revenues saw year-on-year growth of 19% and 35% respectively. In a statement from the NRS Chairman's Special Adviser (Media), Dr. Dare Adekanmbi, Kurawa noted that the oil tax revenue for 2025 totaled N6.6 trillion, reflecting a 19% increase from the previous year.
Meanwhile, non-oil tax revenue surged to N21.5 trillion in 2025, compared to N15.9 trillion in 2024, marking a 35% rise driven by administrative improvements, more robust tax compliance measures, and enhanced enforcement strategies from NRS.
The ambitious 44% increase in the revenue target for NRS is attributed to its expanded role as a comprehensive revenue integration agency for Nigeria, including the collection of royalties previously overseen by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, who participated virtually in the retreat, urged Nigerians to support locally produced goods, which could mitigate revenue losses. He emphasized the importance of intra-Nigerian trade for boosting economic stability, stating, "What we spend in Nigeria directly impacts our economic strength and the revenue capacities of the NRS."
Edun noted that in 2024, developing nations paid $163 billion in debt service while only receiving $42 billion in overseas development assistance, alongside $97 billion in foreign direct investment. This indicates an imbalance, with outbound monetary flows surpassing inbound investments.
He underscored the significance of internal economic actions, stating, “It is essential that we focus on what we can achieve ourselves during this period.”
The minister reiterated the government's objectives concerning fiscal reforms and heightened revenue generation, commending the essential contributions of NRS personnel in local revenue mobilization.
Joseph Tegbe, who chairs the National Tax Policy Implementation Committee, underscored the need for precise execution of tax legislation, asserting that successful implementation will determine whether reforms succeed or simply become another unfulfilled initiative.
Tegbe expressed concerns about Nigeria's reliance on fluctuating oil revenues, stating, “This dependence exposes us to uncontrollable shocks while rising public spending demands a stable and sustainable domestic revenue model.”
He concluded, “The true measure of this reform will not only be its financial gains but also the trust it rebuilds between the Nigerian populace and the government. It is crucial to understand that NRS is a key player, not just another agency, but the national revenue integrator.”
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