Nigeria’s tax revenue has more than doubled in less than three years, rising from N12.3 trillion in 2023 to N27.1 trillion by July 2026, according to the Nigeria Revenue Service (NRS).
The revenue agency attributed the strong growth to major changes in the country’s tax system, including increased digitisation, new tax laws, reforms within the revenue service and measures introduced to close loopholes that previously affected government collections.
The NRS said the development was part of wider economic reforms introduced by the administration of President Bola Tinubu. According to the agency, the reforms have gradually moved the economy away from severe economic pressures towards greater stability.
The revenue service said the introduction of digital tools has improved tax administration and made it easier for authorities to identify taxpayers, monitor transactions and reduce leakages.
Four new tax reform laws and an executive order aimed at closing loopholes have also contributed to the increase in revenue.
The NRS said the government inherited several major economic challenges in 2023, including the costly fuel subsidy system, weaknesses in the foreign exchange market, low oil-sector performance and a tax base that was significantly below its potential.
Although the early stages of the reforms created economic hardship, the revenue authority said several indicators have since shown signs of improvement.
The NRS reported that Nigeria’s crude oil production increased from about 1.2 million to 1.3 million barrels per day in 2023 to approximately 1.73 million barrels per day by July 2026.
The agency said the latest output was above Nigeria’s OPEC quota and could provide additional support for government revenue, foreign exchange earnings and economic activity.
The government’s crude-for-refined-products arrangement with domestic refineries was also highlighted as a major development. The NRS said the policy had helped Nigeria move from depending heavily on imported petroleum products to becoming a net exporter.
Nigeria’s external reserves were also reported to have risen from $3.99 billion in unrestricted reserves in 2023 to $51.9 billion by July 2026.
The country’s balance of payments reportedly moved from a $3.34 billion deficit to a $2.38 billion surplus in the first quarter of 2026.
The NRS also pointed to stronger activity in Nigeria’s capital market. Market capitalisation on the Nigerian Exchange reportedly increased from N30.36 trillion in 2023 to N161 trillion in 2026.
Capital importation also climbed, rising from $3.9 billion in 2023 to $23.22 billion in 2025, while inflows reached $10.37 billion in the first quarter of 2026.
The agency linked the growth to improved investor confidence, banking-sector recapitalisation and stronger participation by domestic institutional investors.
Beyond tax and oil revenues, the NRS highlighted developments in compressed natural gas, agriculture and public finances.
More than 100,000 vehicles had reportedly been converted to CNG by 2026, with over $2 billion in investment attracted to the programme.
The government also increased agricultural spending and introduced measures aimed at improving food production and reducing food costs.
However, public debt remains a major concern. Nigeria’s total debt rose from N87.4 trillion in 2023 to N159.28 trillion in late 2025. The NRS noted that debt-to-GDP fell from 38 per cent in 2023 to 32.3 per cent in 2026.
The agency acknowledged that the reforms have involved difficult adjustments but maintained that continued implementation will be necessary to sustain the gains and strengthen Nigeria’s economic recovery.
