Nigeria's Q1 2026 tax revenue surges by N1.40 trillion despite missed targets
Nigeria’s tax revenue rose by N1.40 trillion in the first quarter of 2026 compared to the same period last year. However, collections fell short of the quarterly target by nearly a quarter. Official figures show a mixed performance across different revenue streams. Total tax revenue for Q1 2026 reached N7.44 trillion, up 23.2% from N6.04 trillion in Q1 2025. Despite this growth, the collection rate dropped to 76.87% of the N9.68 trillion target, down from 103.74% in the previous year.
Oil taxes performed better than expected, bringing in N1.62 trillion—N318.23 billion above the N1.30 trillion target. But petroleum royalties underperformed, generating only N1.12 trillion against a N2.03 trillion goal, a shortfall of N909.25 billion. Non-oil taxes also missed their mark. Companies Income Tax and related levies raised N3.75 trillion, N1.30 trillion below the N5.05 trillion target. The Nigeria Revenue Service (NRS) remains optimistic, projecting N40.7 trillion in total taxes and royalties for the full year 2026.
The Q1 2026 results show a significant increase in tax revenue compared to 2025, but collections still lag behind projections. Oil taxes exceeded expectations, while non-oil and royalty revenues fell short. The NRS continues to pursue its annual target of N40.7 trillion.
