NRS UNVEILS 2026 REVENUE PLAN, EYES N40.7TN TARGET
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By: Balogun Ibrahim
The Executive Chairman of the National Revenue Service (NRS), Zacch Adedeji, has revealed that the agency is targeting ₦40.7 trillion in revenue for 2026, generated from taxes, petroleum earnings, mineral royalties, and other sources, citing the effects of the Federal Government’s ongoing tax reforms.
Adedeji made the disclosure on Wednesday during a session with members of the President’s economic team, including Finance and Coordinating Minister of the Economy Wale Edun, and Minister of Budget and Economic Planning Atiku Bagudu, before the House of Representatives Committee on Appropriations.
The session reviewed the performance of the 2025 budget and considered projections for the 2026 fiscal year.
“In light of the tax reforms transferring petroleum, mineral royalties, and other revenues to the NRS, the total target for taxes, royalties, and other mineral revenues is ₦40.7 trillion,” Adedeji stated.
“We are confident that, with the support of the House, we can achieve the targets we have set,” Adedeji said.
He noted that the National Revenue Service recorded strong revenue growth in 2025, exceeding its target of ₦25.2 trillion.
The agency generated ₦28.23 trillion, surpassing the projection by around ₦3 trillion and reflecting a 12 percent increase in performance.
Adedeji attributed the revenue growth largely to non-oil taxes.
He explained that non-oil tax revenues exceeded expectations, generating ₦21.46 trillion—₦3.4 trillion above target—while oil tax revenues fell short of projections by 5.2 percent.
“Compared to 2024, the Service collected ₦6.5 trillion more in 2025, representing a 30.3 percent increase, driven largely by non-oil taxes,” he added.
Looking ahead to 2026, Adedeji said the NRS anticipates further growth.
“Based on our forecasts, we project revenue of ₦32.14 trillion for 2026, which is ₦3.85 trillion higher than the actual collection recorded in 2025,” he said.
He explained that the projected revenue increase is partly due to higher oil production estimates.
“The growth is based on improved production forecasts, rising from 1.7 million barrels per day in 2025 to 1.8 million barrels per day in 2026,” he noted.
Lawmakers, however, raised concerns over the reported zero capital performance under the 2025 budget.
In response, Finance Minister Wale Edun explained that the administration inherited a fragile fiscal structure heavily reliant on Ways and Means financing and distorted by subsidy-related pressures.
He noted that previous funding mechanisms, including Central Bank deficit financing and petrol subsidy under-recoveries, were unsustainable.
Edun said the government had taken steps to restore fiscal stability by halting unchecked Ways and Means financing, which had ballooned to around ₦30 trillion.
While acknowledging that these reforms were necessary, he admitted they created short-term funding pressures.
Regarding capital expenditure issues, Edun said the Minister of State for Finance, Doris Uzoka-Anite, would provide further clarification to the committee.
Minister of Budget and Economic Planning Atiku Bagudu added that consultations with the National Assembly had led to an agreement to roll over a significant portion of the 2025 capital expenditure into the 2026 fiscal year.
He noted that approximately 70 percent of the 2025 capital allocation would be carried over into the 2026 fiscal year.
Earlier, the Committee Chairman, Abubakar Kabir Bichi, stated that the session was intended to guide the legislature’s review of the 2026 appropriation proposal.
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