Nigeria recorded a total tax revenue collection of N7.44 trillion in the first quarter of 2026, but still fell short of its projected target by N2.24 trillion despite ongoing reforms under the country’s new tax framework. The figure represents 76.87% performance against a prorated target of N9.68 trillion for the period January to March 2026.
Data obtained from the Nigeria Revenue Service (NRS) and presented at the Federation Account Allocation Committee (FAAC) meetings showed that the performance marks a shift from the same period in 2025, when the revenue agency exceeded its target. Total collections also reflect a year-on-year increase of N1.40 trillion, or 23.2%, compared to N6.04 trillion recorded in Q1 2025.
Brandspur Banking News Desk reports that Companies Income Tax, Capital Gains Tax, and Stamp Duties emerged as major pressure points during the quarter, generating N3.75 trillion against a target of N5.05 trillion, leaving a shortfall of N1.30 trillion. Petroleum royalties also underperformed significantly, collecting N1.12 trillion compared to a N2.03 trillion target.
Oil-related tax inflows showed stronger performance in contrast, with Petroleum Profits Tax and Hydrocarbon Tax rising to N1.62 trillion, exceeding projections by N318.23 billion and achieving a 124.42% performance rate. However, gains from oil taxation were not enough to offset weaknesses in non-oil revenue categories.
Value Added Tax (VAT) remained relatively stable, generating N2.42 trillion against a target of N2.49 trillion, reflecting a marginal shortfall. Meanwhile, upstream Companies Income Tax contributed N349.95 billion, falling below expectations, while mineral royalties recorded zero inflows despite budgetary projections.
For March 2026 alone, total tax revenue stood at N2.31 trillion, below the monthly target of N3.23 trillion, although this represented a slight increase compared to February collections. Oil taxes in March marginally exceeded expectations, while non-oil tax categories recorded weaker performance due to lower remittances and reduced economic activity in VATable sectors.
The Nigeria Revenue Service has projected a full-year revenue target of N40.7 trillion for 2026, driven by expanded tax reforms and improved compliance measures. This marks a significant increase from the N28.23 trillion collected in 2025, as authorities continue efforts to strengthen fiscal sustainability and widen the tax base.
