The Executive Chairman of the National Revenue Service, Zacch Adedeji, has said the agency is targeting N40.7tn in revenue for 2026 from taxes, petroleum earnings, mineral royalties and other sources, citing the impact of the Federal Government’s ongoing tax reforms.
Adedeji disclosed this on Wednesday when members of the President’s economic team, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Atiku Bagudu, appeared before the House of Representatives Committee on Appropriations.
The session examined the performance of the 2025 budget and projections for the 2026 fiscal year.
“In the light of the tax reforms that transfer petroleum, mineral royalties and other revenues to the NRS, the total target for taxes, royalties and other mineral revenues is N40.7tn.
“We believe that with the support of the House, we will be able to achieve what we have proposed,” Adedeji said.
He stated that the Service recorded strong revenue growth in 2025, surpassing its target of N25.2tn.
According to him, the agency generated N28.23tn, representing about N3tn above projection and a 12 per cent performance increase.
Adedeji attributed the growth largely to non-oil taxes.
Non-oil tax revenues, he said, outperformed expectations, generating N21.46tn, which was N3.4tn above target, while oil tax revenues fell short of projections by 5.2 per cent.
“When you compare the 2025 performance with 2024, the Service collected N6.5tn more than the previous year. That represents an increase of 30.3 per cent, driven significantly by non-oil taxes,” he added.
Providing projections for 2026, Adedeji said the NRS expects further growth.
“For 2026, based on our forecasts, we project revenue of N32.14tn. This is N3.85tn higher than the actual collection recorded in 2025,” he said.
He explained that the anticipated increase is partly linked to improved oil production estimates.
“The increase is anchored on higher 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, queried the reported zero capital performance under the 2025 budget.
Responding, Edun said the administration inherited a fragile fiscal structure marked by heavy reliance on Ways and Means financing and subsidy-related distortions.
He explained that previous funding models, including Central Bank deficit financing and petrol subsidy under-recovery arrangements, were unsustainable.
According to him, the government had moved to restore stability by halting unchecked Ways and Means financing, which had risen to about N30tn.
While describing the reforms as necessary, Edun acknowledged that they created short-term funding pressures.
On the capital expenditure concerns, he said the Minister of State for Finance, Doris Uzoka-Anite, would provide further clarification before the committee.
Bagudu, in his remarks, said engagements with the National Assembly led to an agreement to roll over a significant portion of the 2025 capital expenditure into the 2026 fiscal year.
He said about 70 per cent of the capital allocation for 2025 would be moved into the 2026 fiscal year.
Earlier, Chairman of the Committee, Abubakar Kabir Bichi, said the interaction was aimed at guiding legislative consideration of the 2026 appropriation proposal.
