NRS Collects N21.6tn in H1 2026 as Tax-to-GDP Ratio Rises to 13 Per Cent

Nigeria’s Revenue Service (NRS) collected N21.6 trillion in the first half of 2026, representing a 49 per cent increase from the same period in 2025, as tax reforms, digitalisation of collection processes, and stronger oil revenue remittances combined to deliver one of the most significant half-year revenue performances in the country’s fiscal history, Independent Newspaper Nigeria reported on Monday.

Non-oil taxes contributed 76 per cent of total collections, a significant structural shift that reflected the impact of the six tax reform laws signed in June 2025, the broadening of the taxpayer identification framework, and stronger enforcement of VAT obligations on both domestic businesses and foreign digital service providers. The country’s tax-to-GDP ratio improved to 13 per cent from 10.3 per cent in the same period of 2025.

NRS Targets N40.7 Trillion for Full Year

The NRS said it was targeting N40.7 trillion in revenue for the full year 2026, implying a second-half target of approximately N19.1 trillion that would require sustaining the current collection momentum. Finance Minister Taiwo Oyedele said the H1 performance validated the administration’s strategy of prioritising compliance improvement and base expansion rather than rate increases, directly contradicting the IMF’s recommendation to raise VAT and introduce telecom excise duties.

The N21.6 trillion H1 collection builds on the N12.93 trillion recorded in Q1 2026 alone, a figure that had already shown the directional improvement in Nigeria’s revenue trajectory. CBN Governor Cardoso separately said Nigeria’s macroeconomic stability gains had been widely acknowledged by the IMF, World Bank, and international rating agencies, citing the improved revenue performance as one of the key markers of reform credibility.

Foreign VAT and Digital Taxes Lead Growth

Foreign VAT collections rose 83 per cent year on year to N830.47 billion in Q1 2026, reflecting stronger enforcement of VAT obligations on digital platforms including Google, Meta, and X, which the FCCPC is separately investigating over market dominance concerns. Furthermore, the NRS said it would deploy additional digital intelligence tools in H2 2026 to identify and bring into compliance businesses in the informal economy, which remains the largest single source of revenue leakage. Consequently, Nigeria’s fiscal story in 2026 is one of genuine and measurable improvement in revenue collection that, if sustained, could significantly reduce the government’s reliance on borrowing in the medium term.