NRS tax revenues jump 113% to N27tn in three years – Report

Nigeria’s tax revenues have jumped from N12.3tn in 2023 to N27tn as of July 2026.

This represents an astronomical increase of 113 per cent in less than three years, the Nigeria Revenue Service has said.

The revenue authority attributed the sharp increase to the digitisation of the tax system, the enactment of four new tax reform laws, the transformation of the revenue service and an executive order aimed at closing loopholes in the tax system.

The NRS, in an internal report on the state of the Nigerian economy, insists that the country is moving from a period of severe macroeconomic distress towards a more stable and resilient economy following the implementation of a series of difficult reforms by the President Bola Tinubu administration.

The apex tax agency states, “Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026 with the digitisation of tax systems, four new tax reform laws, the transformation of the revenue service and an executive order that closed loopholes in the system.

“The Nigerian economy has moved decisively from acute macroeconomic distress toward a more stable and increasingly resilient footing.”

It attributes the development to what it describes as Tinubu’s economic management acumen and determination to implement reforms under his administration’s Renewed Hope Agenda.

According to the report, the administration inherited four major economic distortions which have continued to undermine government revenue and economic growth.

It identifies the challenges as “a fiscally unsustainable fuel subsidy regime, an opaque forex system that discouraged investment, a non-performing oil sector, and a tax base ‘far below its potential’.”

The revenue agency notes that the initial impact of the reforms created significant economic difficulties but maintains that the country’s major economic indicators have subsequently begun to improve.

It cites falling inflation, a turnaround in the balance of payments, increased crude oil production, the emergence of Nigeria as a net exporter of petroleum products and the more than doubling of tax collections as evidence of the recovery.

The report also highlights an increase in the minimum wage, saying it has doubled between 2023 and 2026.

The NRS says the government’s naira-for-crude arrangement with the Dangote Petroleum Refinery and other domestic refineries has contributed to a major shift in Nigeria’s petroleum trade position.

According to the report, the arrangement has helped Nigeria move from being a net importer of petroleum products to becoming a net exporter after decades of dependence on imports.

It notes that Ghana has recently decided to pursue a similar policy in its petroleum sector, adding that crude oil production has increased from about 1.2 million-1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026.

The NRS also points to developments in the capital market as another indication of improving economic confidence, explaining that the market capitalisation of the Nigerian Exchange has risen from N30.36tn in 2023 to N161tn in 2026.

Nigeria’s external reserves also rose sharply during the period under review.

According to the NRS report, reserves increased from an unrestricted $3.99bn in 2023 to $51.9bn as of July 2026, which it describes as a 17-year high.

The country’s balance of payments also moved from a $3.34bn deficit to a $2.38bn surplus in the first quarter of 2026, the report stated. Nigeria’s trade position similarly recorded a significant improvement, moving from a marginal surplus of N44.7bn to N7.55tn in the first quarter of 2026.

The report says foreign portfolio investment has been particularly strong, while foreign direct investment has also improved.

It notes that the increase in capital inflows reflects stronger investor confidence as economic reforms reshaped the operating environment.

The NRS explains that the combination of higher tax collections, increased oil production, stronger capital inflows, rising reserves and improved trade and balance of payments positions point to an economy that is gradually emerging from the severe pressures that followed the government’s early reforms.
• The PUNCH

FG okays tax waivers for 4,000 electric vehicles

The Federal Government has approved tax waivers for almost 4,000 electric vehicles imported into Nigeria in the first half of 2026.

Government data reviewed by Reuters in a report on Wednesday showed that the approvals represented the first batch processed under a new government initiative designed to encourage the adoption of cleaner vehicles through tax incentives and local vehicle assembly programmes.

The move signals an intensification of Nigeria’s efforts to shift part of its transport system away from petrol and diesel vehicles, even though the country’s electricity supply remains far below the level required to support large-scale electric vehicle adoption.

The report reads, “The Federal Government has approved tax waivers for nearly 4,000 EVs in the first half of this year, government data showed, as authorities push to accelerate nascent EV adoption despite chronic electricity shortages.

“The approvals reviewed by Reuters are the first under a new government programme aimed at promoting cleaner transport through tax incentives and local assembly programmes.”

Nigeria’s 2022 Energy Transition Plan targets electric vehicles accounting for 60 per cent of the country’s vehicle fleet by 2050. However, the country is still at the early stages of the transition.

Official data on the current number of electric vehicles on Nigerian roads is unavailable, but dealers estimated that EVs account for less than one per cent of the country’s vehicle fleet, translating to only tens of thousands of vehicles.

The government has nevertheless introduced a series of fiscal measures to make electric vehicles more competitive. Nigeria exempted electric vehicles from value-added tax in 2024 and reduced import duties on EVs to zero this year from five per cent.

The measures have come against the backdrop of higher petrol prices following the removal of the petrol subsidy in 2023, making fuel-efficient and electric mobility options increasingly attractive to motorists and commercial transport operators.

The biggest challenge facing Nigeria’s electric vehicle ambitions, however, may be the same infrastructure on which the technology depends: electricity.

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The national grid supplies around 4,000 megawatts to a population of more than 200 million people, leaving Nigeria with one of the lowest levels of per-capita electricity availability among major economies.

An executive at Saglev, Nigeria’s first electric vehicle manufacturer, an affiliated of Chinese automaker, Dongfeng, Bolanle Boboye, said the country should pursue both energy and transport transitions simultaneously.

“If we wait for electricity to become perfect before adopting EVs, the rest of the world will leave us behind,” Boboye said.

He added that the environmental benefits of electric vehicles could remain significant even where electricity generation was not entirely clean.
“Even when EVs are charged using diesel-generated electricity, they can still help reduce overall emissions,” he said.

• The PUNCH

What your taxes do

Akwanga-Jos-Bauchi-Gombe road dualisation

The project:
The dualisation represents a major federal infrastructure project linking Nasarawa, Plateau, Bauchi, and Gombe states.
Length:
The road spans 421 km along the A3 highway, traversing challenging terrains including sharp curves between Jos and Akwanga.
Estimated cost:
N348.5bn with recent 2024-2025 commitments for counterpart funding from state governments.
Facilities:
Expansion of the existing two-lane single carriageway to a dual carriageway with two lanes in each direction, including safety enhancements like curve realignments to reduce crashes and boost capacity.
Completion:
Originally projected to be completed in four years from 2018 approval date. Contracts pending award under recent federal directives. No new timeline confirmed.
Contractors:
Project in design, funding, and procurement phase, with mobilisation camps established historically. Multiple firms likely to execute project.

Penalties & Sanctions: Penalties may be imposed for various non-compliance issues, including late filing, late payment, underreporting of income, failure to register, and providing false information. Enforcement actions can range from reminders and audits to legal proceedings and asset recovery.

Late filing penalties: Fines are charged for not submitting tax returns by due date.

Late payment penalties: Interest and additional charges apply to unpaid taxes after the deadline.

Failure to register: Businesses and individuals must register with the NRS; failure to do so may result in sanctions.

False declaration: Providing inaccurate or misleading information can lead to severe penalties, including prosecution.

Audit & investigation: The NRS may conduct audits or investigations if non-compliance is suspected.

Tinubu’s reforms creating new opportunities for youths — NRS chairman

Chairman, Nigeria Revenue Service, Dr. ZacchAdedeji, says President Bola Tinubu’s tax and economic reforms are opening new windows of opportunities for Nigerian youths.

He spoke in a keynote speech at the Oyo State Emerging Political Leaders Summit 2026 in Ibadan, the state capital.

The News Agency of Nigeria reports that the summit has as its theme ‘Bridging the Gap, Uniting Political Strength, Mobilising Emerging Political Leaders for 2027’.

Adedeji, who was represented by a management employee of NRS,  AbdulRahamonAbdulLateef, highlighted key areas where young Nigerians could directly benefit from the various ongoing reforms in business, investment, and agriculture.

According to him, the new Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act have removed major burdens for small businesses.

The NRS boss stated, “If you register your own company and your revenue in a year is below N100 million, you are not expected to pay company income tax, VAT, or withholding tax.”

He added that the law also allowed institutions in special sectors such as education to claim VAT refunds on expenses, provided they keep proper records.

Adedeji said this was not possible under the old tax laws dating back to 1903, adding that the new provision was designed to help startups and schools grow.

He pointed to the reformed Nigerian stock market as a major wealth-creation channel for youths.

The NRS chairman noted that between 2023 and 2026, the market had produced “more than 700 billionaires” and made it easier for young people to invest.

Adedeji added that the federal allocations to states and local governments had tripled under the Tinubu administration, rising from about N700bn monthly before 2023 to N2.5tn in June and N3tn in July 2026.

He said the increase was already reflecting in state budgets and reducing the need for bailouts.

The NRS Chairman said that the reforms were already yielding results, noting that the NRS revenue was projected to hit N40tn in 2026.

He urged youths to leverage the NRS digital platforms to understand how they could key into the system, and to explore opportunities in various sectors.

• NAN

                 NRS operational guideline
           Guideline for lodging complaints

The Nigeria Revenue Service is committed to providing fair, transparent, and efficient services to all taxpayers.

If you have a complaint regarding our services, staff conduct, or any tax-related matter, you are encouraged to lodge your complaint through the appropriate channels. Your feedback helps us improve our processes and serve you better.

Please follow the steps below to ensure your complaint is addressed promptly and effectively:

• Clearly state the nature of your complaint, including relevant details such as dates, reference numbers, and the parties involved.
• Provide supporting documents or evidence, if available, to help us investigate your complaint thoroughly.
• Submit your complaint through any of the official channels listed below.
• Keep a record of your complaint submission for future reference.

Complaints can be lodged in person, by mail or through the telephone helpline at +234-0209 460 2700 for guidance on lodging your complaint. All complaints will be treated within 48 hours.

Taxable Line: When people pay taxes, they pay attention to what government is doing. Tax is not a tip given to government according to how we feel; it’s an obligation and a civic duty – Prof Yemi Osinbajo (Acting President, June 29, 2017)