Nigeria's tax revenue jumps 49% as Tinubu's reforms boost collections

Nigeria’s tax revenue rose 49% in the first five months of 2026, reaching 15.8 trillion naira (about $11.6 billion), well above the government’s 11.6% growth target. The surge was driven by tax reforms introduced in 2025 that consolidated more than 50 taxes into a single code, lowered the corporate income‑tax rate for large firms to 25%, and expanded automation and compliance incentives. Oil‑related tax receipts rose more than 20% to 3.96 trillion naira amid higher crude prices, while non‑oil taxes grew 12.3% to 8.2 trillion naira, supported by higher personal‑income tax collections.

In the first quarter of 2026, Value‑Added Tax (VAT) collections hit N2.42 trillion, a 17.06% year‑on‑year increase. Local VAT contributed N1.11 trillion, foreign VAT N830 billion and import VAT N478 billion. Manufacturing accounted for 29.75% of VAT, followed by the information and communication sector (20.61%) and mining (12.32%). Officials attribute these gains to President Bola Ahmed Tinubu’s fiscal agenda, which aims to raise the tax‑to‑GDP ratio to 18% by 2030 and reduce reliance on oil revenue.