Nigeria’s revenue surges 49% to N15.8tn in five months as tax reforms, improved compliance and oil earnings boost government collections

Nigeria’s revenue collections climbed to N15.8 trillion in the first five months of 2026, marking a significant 49 per cent increase from the N10.6 trillion recorded during the same period last year, as economists attributed the performance to sweeping tax reforms, improved revenue administration and stronger oil sector earnings.

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Data from the Nigeria Revenue Service, reported by Bloomberg, showed that government revenue not only outperformed the previous year’s figure but also surpassed the Federal Government’s baseline growth target of 11.6 per cent, highlighting the early impact of fiscal reforms introduced under President Bola Tinubu’s administration.

The robust performance comes months after the full implementation of landmark tax reforms designed to widen the tax base, improve compliance and streamline revenue collection across the country.

Former Chief Economist at Zenith Bank, Marcel Okeke, said the increase reflects a combination of policy reforms and improved efficiency in tax administration.

“The introduction of new tax laws is beginning to yield results by expanding the tax base and improving efficiency in collection,” Okeke said.

The figures indicate that revenue growth was not driven solely by newly introduced tax measures. Even when revenues from the new taxes are excluded, collections still rose by 15 per cent to N12.2 trillion, suggesting stronger compliance and better administration across existing revenue streams.

Oil-related tax collections played a major role in the improved performance. According to the report, revenue from the sector rose by more than 20 per cent to N3.96 trillion, supported by higher crude oil prices during periods of geopolitical tension in the Middle East and stronger export earnings.

Okeke noted that improvements in crude oil production and export volumes also contributed to the increase.

“It’s been a long time since Nigeria consistently met its production quota in terms of oil output and exports. It will also mean that tax administration is improving because the intention of some of the provisions of the tax law is to expand the tax base and improve efficiency in tax collection,” he said.

Another economist, Dr Aliyu Ilias, linked the growth to tax revisions, increased excise duties and broader fiscal measures aimed at strengthening government finances.

“If you look at taxes, they have been reviewed, so it is expected that you have an increase. In fact, if you look at excise duty also, you see there is a lot that has been done,” Ilias stated.

He added that developments in the international oil market and government policy direction have further supported revenue growth, although he cautioned that it remains too early to fully assess the long-term impact of the new tax regime.

A notable highlight in the figures was the continued expansion of non-oil revenue, which rose by 12.3 per cent to N8.2 trillion. The increase reflects stronger collections across key sectors of the economy and ongoing efforts to reduce Nigeria’s dependence on petroleum revenues.

The revenue data excludes proceeds from revised personal income tax rates administered by state governments, which came into effect on January 1, 2026.

Nigeria’s latest fiscal performance follows a comprehensive overhaul of the country’s tax framework. In 2023, President Tinubu established the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by tax expert Taiwo Oyedele, to redesign the nation’s tax system and improve revenue generation.

The reform process culminated in June 2025 when the President signed four major tax reform bills into law after their passage by the National Assembly. The legislation replaced several existing tax laws, including the Personal Income Tax Act, with the Nigerian Tax Act, 2025, and created the Nigeria Revenue Service to strengthen tax administration nationwide.

While economists welcomed the encouraging figures, they stressed that the ultimate test of the reforms would be whether the increased revenue translates into visible improvements in infrastructure, public services, economic stability and living standards.

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The strong revenue growth provides an important boost for government finances at a time when Nigeria is seeking to reduce fiscal deficits, attract investment and accelerate economic development through enhanced domestic revenue mobilisation.