Nigeria's Revenue Service Reports Significant Economic Gains from Reforms
Tax revenue rose to N28.3 trillion in 2025, debt-to-GDP ratio fell, and non-oil revenue now accounts for 76% of collections, driven by subsidy removal and FX unification.
Tax revenue rose to N28.3 trillion in 2025, debt-to-GDP ratio fell, and non-oil revenue now accounts for 76% of collections, driven by subsidy removal and FX unification.
· Updated
Nigeria’s Revenue Service (NRS) reported that economic reforms implemented since May 2023 have moved the country from acute macroeconomic distress to a more stable and resilient footing. Tax collections increased from N12.3 trillion in 2023 to N28.3 trillion in 2025, with total collections reaching N27.1 trillion in the first eight months of 2026.
The NRS attributed the revenue growth to digitalization of tax administration, expansion of the tax base, and implementation of new tax laws. Key reforms included the removal of fuel subsidies, unification of the foreign exchange market, and tighter monetary policy, which improved market efficiency and investor confidence.
Non-oil revenue now accounts for 76% of total collections, marking progress in revenue diversification. The debt-to-GDP ratio declined from 35.5% in 2025 to 32.3% in 2026, remaining below the IMF’s risk threshold.
NRS Executive Chairman Zacch Adedeji stated that the reforms have strengthened macroeconomic stability and enabled longer-term business decisions. The service projected further revenue growth as e-invoicing expands and new tax laws become fully operational.
FAQ
What were the key reforms driving Nigeria's economic improvement?
Key reforms included the removal of fuel subsidies, unification of the foreign exchange market, implementation of the Petroleum Industry Act, tighter monetary policy, and ongoing tax overhaul.
How has Nigeria's debt position changed?
Nigeria's debt-to-GDP ratio declined from 35.5% in 2025 to 32.3% in 2026, largely due to nominal GDP growth outpacing debt accumulation.
