The Nigeria Revenue Service generated N21.6tn in the first half of 2026, representing a 49 per cent increase year-on-year, driven by sweeping tax reforms, digitalisation of tax administration and changes to oil revenue remittances, an economic report obtained by The PUNCH from the Presidency has shown.

The figures were contained in the Economic Snapshot Report 2023 vs 2026, obtained by The PUNCH on Monday. The report reviewed Nigeria’s economic performance since President Bola Tinubu assumed office in May 2023 and attributed the increase in revenue collections to policy reforms implemented over the past three years.

According to the report, total tax collections rose from N12.3tn in 2023 to N21tn in 2024 and N28.3tn in 2025, while the N21.6tn generated in the first six months of 2026 represented a 49 per cent increase over the corresponding period of 2025.

It also stated that non-oil revenue accounted for 76 per cent of total collections, while Nigeria’s tax-to-GDP ratio improved from 10.3 per cent to 13 per cent. The report attributed the revenue growth to the digitalisation of tax administration, the implementation of four tax reform laws, the expansion of the Nigeria Revenue Service’s mandate, and Executive Order 9, which changed the remittance process for oil revenues.

“The gains are attributable to: (i) The digitalisation of the tax systems, such as the national e-invoicing system rolled out to large taxpayers. (ii) Four new tax reform laws — the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Establishment Act, and the Joint Tax Board Establishment Act — effective January 1, 2026.

“(iii) The FIRS to NRS transformation, which folded in non-tax revenue streams previously collected by other agencies, thereby creating a central revenue consolidation system,” the report stated.

The report also credited Executive Order 9, signed in February 2026, with boosting monthly Federation Account receipts by closing loopholes in upstream oil and gas remittances. It stated that the executive order “increased monthly Federation Account receipts by 60 per cent (from N1.8tn in February to N2.88tn in March 2026) by closing deduction loopholes on upstream remittances.”

The report further noted that sustained investment in staff training, recruitment, and digital tools under the current leadership also contributed to the agency’s record collections.

Explaining the impact of Executive Order 9, the report stated, “Signed in February 2026, Executive Order 9 requires upstream oil and gas operators to remit royalties, taxes, and production-sharing-contract profit oil directly and in full to the Federation Account, rather than allowing these sums to be netted off or deducted at source before reaching the Treasury.”

It added, “The impact was immediate and measurable: monthly Federation Account receipts rose 60 per cent in a single month, from N1.8tn in February 2026 to N2.88tn in March 2026.”

According to the report, the order “closes a structural leakage point that had, for years, allowed a portion of Nigeria’s oil-sector earnings to bypass the federally distributable pool — meaning its benefit should continue to compound in every subsequent month of full compliance, making it one of the single most effective revenue-side reforms of the administration to date.”

The report, however, said there remained significant scope to increase tax collections, noting that the country’s tax-to-GDP ratio was still below the government’s long-term target.

“The tax-to-GDP ratio, while already improving, still has room to grow toward the government’s 18 per cent target — representing a clear and achievable runway for the Service to build on its current momentum, particularly as e-invoicing coverage and the new tax laws take fuller effect through 2026 and 2027,” the report stated.

The report also recommended that the Presidency and the Nigeria Revenue Service seek legislative backing for Executive Order 9 by incorporating its provisions into the Nigeria Tax Administration Act or forthcoming amendments to the Petroleum Industry Act to preserve the gains in Federation Account revenues beyond the lifespan of the executive order.

Beyond revenue mobilisation, the report highlighted broader economic changes since May 2023. It said external reserves rose from $3.99bn to $50.11bn, crude oil and condensate production increased from 1.2-1.3 million barrels per day to 1.9 million barrels per day, while domestic refining capacity expanded from 30,000 barrels per day to 700,000 barrels per day, enabling Nigeria to record its first net petrol export in March 2026.

It also stated that annual capital importation increased from $3.9bn in 2023 to $23.22bn in 2025, while the Nigerian Exchange’s market capitalisation grew from N30.36tn to N155tn.

The PUNCH earlier reported that the Nigeria Revenue Service set an ambitious revenue target of N40.7tn for 2026, banking on stronger non-oil collections, expanded compliance, automation, and tighter enforcement to sustain recent growth momentum.

The target, unveiled at the NRS Management Retreat in Abuja, represents an increase of about 44 per cent from the N28.29tn collected in 2025 and more than six times the N6.4tn recorded in 2021, reflecting the Federal Government’s push to boost domestic revenue and reduce reliance on borrowing.