Tax Revenue Hits N28.3trn as Non-Oil Sector Powers Record Gains.

ABUJA — The Nigeria Revenue Service (NRS) has shattered previous records by generating N28.3 trillion in tax revenue during the 2025 fiscal year. This figure represents a staggering 30 percent increase over the N21.7 trillion collected in 2024. Executive Director of Government and Large Taxpayers, Hajiya Amina Kurawa, announced these results during a management retreat yesterday. The agency effectively surpassed the Federal Government’s initial target of N25.2 trillion by approximately 12 percent. Furthermore, non-oil tax receipts emerged as the primary engine of growth, contributing N21.5 trillion to the national treasury. Consequently, the government has now raised the stakes by setting a massive N40.7 trillion target for 2026.

The performance metrics show a robust upward trajectory across most quarters of the previous year. Specifically, the NRS achieved 129.7 percent of its target in the second quarter and 131.9 percent in the third. However, collections dipped slightly to 90.4 percent during the final quarter of 2025. Kurawa attributed the overall success to enhanced compliance measures and a surge in voluntary tax filings nationwide. Meanwhile, the service underwent a significant structural transformation, moving away from legacy systems toward a digitized fiscal architecture. This modernization effort aims to eliminate human bottlenecks and expand the national tax net more effectively.

Conversely, the Executive Chairman of the NRS, Dr. Zacch Adedeji, warned against complacency among the agency’s leadership. He urged staff to abandon rigid mindsets and “invisible beliefs” that often stifle institutional reform. Adedeji emphasized that future success depends on adaptability and a total break from outdated administrative practices. Furthermore, the agency intends to integrate royalty collections previously managed by other petroleum regulatory bodies. This expansion of mandate positions the NRS as the central system integrator for all federal revenues. In a related development, new tax laws signed in mid-2025 have already begun simplifying the obligations for small businesses.

The Minister of Finance, Mr. Wale Edun, underscored the critical importance of these gains during a virtual address. He noted that developing nations collectively paid $160 billion in debt service costs in 2024. This massive outflow significantly dwarfs the foreign direct investment and overseas aid received during the same period. Edun argued that building a sustainable domestic revenue base is the only way to reduce debt dependence. Furthermore, he encouraged Nigerians to prioritize locally made products to strengthen the broader macroeconomic environment. He believes that improved revenue mobilization will eventually create the fiscal space required for urgent infrastructure development.

Ultimately, the N40.7 trillion goal for 2026 represents a daring test of Nigeria’s fiscal resilience. The NRS must now navigate the complexities of a widening tax base while ensuring fair enforcement. Only a transparent and efficient tax system can rebuild the trust between the state and its citizens. For Nigerians, these trillions must eventually translate into better roads and improved public services. Until then, the focus remains on whether the tax man can truly deliver on these lofty promises.