NRS Records Historic N28.3trn Revenue in 2025, Sets N40.7trn Target for 2026
The Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), has announced a record-breaking revenue performance for 2025, generating N28.3 trillion and exceeding its annual target of N25.2 trillion.
The achievement was disclosed on behalf of the Executive Chairman of the NRS, Mr Zacch Adedeji, by the Executive Director in charge of the Government and Large Taxpayers Group, Ms Amina Ado Kurawa, at the opening of a two-day management retreat in Abuja on Tuesday.
The retreat, themed “Designed to Adapt, Built to Deliver,” was held at the Congress Hall of the Transcorp Hilton Hotel.
A statement signed by the Chairman’s Special Adviser on Media, Mr Dare Adekanmbi, also revealed that the agency’s revenue target for 2026 has been fixed at N40.71 trillion, representing a 44 per cent increase over the 2025 benchmark.
Speaking earlier at the event, Adedeji urged staff and management of the agency to abandon outdated assumptions, stressing that the credibility of Nigeria’s revenue framework and investor confidence in the economy depend largely on the institution’s performance.
He said rigid thinking could hinder progress, while leadership anchored on integrity, courage and openness would help build a revenue institution fit for the country’s current realities.
Adedeji added that the true measure of the NRS would be reflected in the conduct and outcomes of its workforce beyond internal deliberations.
Providing details of the 2025 performance, Ms Kurawa explained that the agency surpassed its revenue target by 12 per cent. She said non-oil taxes accounted for N21.4 trillion, significantly higher than the N18 trillion projected for the year.
Oil tax revenue stood at N6.8 trillion, representing about 95 per cent of the N7.2 trillion target set for the sector.
Overall, oil and non-oil tax revenues recorded year-on-year growth rates of 19 per cent and 35 per cent, respectively.
She noted that oil tax receipts in 2025 amounted to N6.6 trillion, up from N5.8 trillion in 2024, while non-oil tax revenue rose to N21.5 trillion from N15.9 trillion in the previous year.
According to the statement, the strong performance was driven by administrative reforms, expansion of the withholding tax system, digitalisation initiatives, improved compliance measures and stronger enforcement strategies introduced by the NRS.
The statement further explained that the sharp increase in the 2026 revenue target reflects the expanded mandate of the NRS as Nigeria’s revenue system integrator, including responsibilities such as the collection of royalties previously handled by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
Also speaking at the retreat, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who participated virtually, called on Nigerians to patronise locally made goods as a way of reducing revenue leakages and strengthening domestic revenue generation.
Edun said while regional and continental trade remain important, increased intra-Nigerian trade is critical to economic growth and revenue sustainability.
He highlighted data showing that developing countries paid about 163 billion dollars in debt servicing in 2024, compared to just 42 billion dollars received as overseas development assistance and 97 billion dollars in foreign direct investment and private sector inflows.
The figures underscore the need for countries like Nigeria to rely more on internal economic activity to meet fiscal obligations, he added.
He reaffirmed the Federal Government’s commitment to fiscal reforms and revenue mobilisation, commending the NRS for its central role in domestic revenue generation.
The Chairman of the National Tax Policy Implementation Committee, Mr Joseph Tegbe, also stressed the importance of effective execution of tax laws, warning that poor implementation could undermine otherwise sound reforms.
Tegbe said Nigeria’s heavy reliance on oil revenue exposes the economy to external shocks, while growing public expenditure requires stable and predictable domestic income.
He added that the success of ongoing tax reforms would be judged not only by the revenue generated but by the level of trust rebuilt between the government and citizens.
He described the NRS as more than a conventional agency, noting that it serves as the country’s revenue system integrator, a role he said is crucial to the sustainability of Nigeria’s public finances.
