Nigeria generated ₦21.6 trillion in tax revenue during the first half of 2026, marking a 49 per cent increase from the ₦14.27 trillion recorded in the corresponding period of 2025, as ongoing fiscal reforms and digital tax administration continued to strengthen government revenue collection.
The figures were disclosed by Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, during the Lagos Chamber of Commerce and Industry (LCCI) 2026 Economic Mid-Year Review and Outlook Conference.
Speaking on the theme “Economic Scorecard – Agriculture, Manufacturing and Service Sectors,” Fasua attributed the strong revenue performance to sweeping fiscal reforms, the digitalisation of the Nigeria Revenue Service (NRS), and improved tax administration across key sectors.
According to him, the reforms have improved domestic revenue mobilisation while easing fiscal pressures on the government.
He noted that Nigeria’s debt profile improved in 2025, supported by stronger economic growth, improved fiscal resilience and gains from exchange-rate appreciation.
However, Fasua acknowledged that government expenditure also rose during the period due to the implementation of the new national minimum wage, higher debt servicing obligations and increased capital spending by state governments.
Tax reforms beginning to yield results
The revenue growth comes amid the implementation of Nigeria’s far-reaching tax reforms, which include the establishment of the Nigeria Revenue Service (NRS), expanded digital tax administration and measures aimed at widening the tax base and improving compliance. Analysts say the reforms are helping to reduce revenue leakages while strengthening non-oil revenue generation.
Industry reports indicate that Nigeria’s tax collections have risen steadily over the past three years, climbing from ₦12.3 trillion in 2023 to ₦21 trillion in 2024, ₦28.3 trillion in 2025, with the current trajectory pointing to another strong performance in 2026.
Manufacturing competitiveness remains a concern
Despite the positive fiscal outlook, concerns remain about the broader economy.
Also speaking at the conference, Dr. Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), warned that Nigeria must improve the competitiveness of its manufacturing sector to sustain economic growth.
Yusuf cautioned that without addressing structural bottlenecks affecting manufacturers, including high production costs, inadequate infrastructure and foreign exchange challenges, the country could struggle to maximise the benefits of its fiscal reforms.
The strong revenue performance is expected to provide the Federal Government with greater fiscal space to finance infrastructure, social programmes and economic development while reducing dependence on borrowing.
However, economists say sustaining the momentum will depend on balancing higher tax collection with policies that encourage investment, improve ease of doing business and strengthen the productive sectors of the economy.
