Nigeria generated N21.6 trillion in tax revenue in the first half of 2026, representing a 49 per cent year-on-year increase from the corresponding period of 2025, as recent tax reforms and improved compliance continued to boost government collections.
According to a report by CSL Stockbrokers, the strong performance extends Nigeria’s recent revenue growth trajectory, with total tax collections increasing from N12.3 trillion in 2023 to N21 trillion in 2024 and N28.3 trillion in 2025.
The report attributed the growth to the digitalisation of tax administration through a national electronic invoicing system, the implementation of four tax reform laws that took effect in January 2026, the transition of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) with an expanded revenue collection mandate, and stronger compliance across the oil and non-oil sectors.
It also noted that Executive Order 9, signed in February 2026, has strengthened revenue collection by requiring upstream oil and gas companies to remit royalties, taxes and production-sharing contract profit oil directly to the Federation Account.
The report said non-oil taxes accounted for 76 per cent of total NRS collections during the review period, reflecting a gradual broadening of the country’s tax base and reducing dependence on hydrocarbon-related revenues.
It added that the improvement helped raise Nigeria’s tax-to-GDP ratio to 13 per cent from 10.3 per cent, although the figure remains below the government’s medium-term target of 18 per cent and the average recorded by many African peers.
CSL said sustaining the current pace of revenue growth would require continued legislative backing and effective implementation of the new tax framework.
The report recommended incorporating the provisions of Executive Order 9 into permanent legislation through amendments to the Nigeria Tax Administration Act or the Petroleum Industry Act to provide greater legal certainty for upstream revenue remittances.
It also identified nationwide implementation of the new tax laws, wider adoption of electronic invoicing, improved taxpayer compliance and continued digitalisation of tax administration as key measures to support further gains in domestic revenue mobilisation.
According to the report, stronger and more predictable government revenues could improve Nigeria’s fiscal sustainability by narrowing the fiscal deficit while creating additional fiscal space for infrastructure development and social spending, provided expenditure remains disciplined.