Nigeria recorded a major increase in tax revenue during the first half of 2026, showing signs that recent economic reforms are beginning to produce positive results. According to the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, the country generated N21.6 trillion in tax revenue between January and June 2026. This represents a 49 percent increase compared to the N14.27 trillion collected during the same period in 2025.
Dr. Fasua shared the figures while speaking at the 2026 Economic Mid-Year Review and Outlook Conference organised by the Lagos Chamber of Commerce and Industry (LCCI). The conference focused on the performance of key sectors, including agriculture, manufacturing, and services.
He explained that the sharp rise in tax revenue was driven by several government reforms. These include improvements in the country’s tax collection system through digital technology, stronger fiscal policies, and the introduction of new levies on selected sectors of the economy. According to him, these efforts have strengthened government finances and improved revenue generation.
Dr. Fasua also noted that Nigeria experienced lower debt pressure in 2025. He said this was made possible by improved fiscal management, stronger economic growth, and a more stable exchange rate. However, he pointed out that government spending also increased during the year. The higher expenditure was mainly due to the implementation of the new minimum wage, rising interest payments on debt, and increased capital projects by state governments.
During the conference, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, stressed the importance of improving Nigeria’s manufacturing sector. He warned that if manufacturers continue to struggle with high production costs and poor competitiveness, the country could face slower economic growth, rising unemployment, and greater dependence on imported goods.
According to Yusuf, weak industrial production limits productivity and reduces national income. He added that Nigeria’s heavy reliance on imports, combined with limited export diversification, will continue to put pressure on the naira and reduce the country’s foreign exchange reserves.
He also warned that investors may choose to establish factories in countries with lower production costs if Nigeria fails to create a more competitive business environment. This could prevent the country from fully benefiting from opportunities provided by the African Continental Free Trade Area (AfCFTA), while local businesses risk losing market share to stronger African competitors.
Yusuf further identified inflation, exchange rate instability, and ongoing fiscal challenges as major concerns affecting investor confidence. He encouraged businesses to focus on innovation, continuous improvement, and collaboration to remain competitive in the future.
Speaking at the event, LCCI President, Engineer Leye Kupoluyi, described the first half of 2026 as a period marked by both progress and challenges. He said businesses and households have continued to face difficult economic conditions, but noted that meaningful reforms often require tough decisions and consistent implementation.
Kupoluyi also highlighted global challenges such as supply chain disruptions, tariff disputes, geopolitical tensions, fluctuating oil prices, and food security concerns. He said these issues make it more important for businesses to rely on accurate economic information when making decisions.
He reaffirmed the LCCI’s commitment to supporting an economy that is driven by the private sector, focused on productivity, and designed to improve the lives of Nigerians. He expressed confidence that with sustained reforms and stronger collaboration between government and businesses, the country can achieve long-term economic growth and stability.
