One year after President Bola Ahmed Tinubu signed Nigeria’s landmark tax reform laws, the reforms are beginning to deliver significant results, with government revenue rising sharply and the country steadily reducing its dependence on crude oil earnings.
The reforms, introduced under the Renewed Hope Agenda, were designed to simplify Nigeria’s tax system, eliminate multiple taxation, improve compliance, support businesses and provide sustainable revenue to finance national development.
Before the reforms, Nigeria relied heavily on oil revenues to fund government activities, leaving public finances vulnerable to fluctuations in global crude prices. The new tax framework aims to diversify government income by strengthening domestic revenue generation.
A key driver of the reforms has been the Nigeria Revenue Service (NRS), led by its Executive Chairman, Dr. Zacch Adedeji. Since assuming office, Adedeji has overseen major improvements in tax administration through technology, enhanced compliance, improved taxpayer services and closer collaboration with stakeholders.
The impact is reflected in the latest revenue figures released by the agency. Between January and June 2026, the NRS collected ₦21.6 trillion in tax revenue, representing a 49 per cent increase over the ₦14.27 trillion generated during the corresponding period in 2025.
In June alone, the country recorded ₦799.75 billion in Value Added Tax (VAT), while total statutory revenue paid into the Federation Account stood at ₦3.701 trillion, bringing gross revenue for the month to ₦4.501 trillion. The Federation Account Allocation Committee (FAAC) subsequently distributed ₦2.55 trillion to the federal, state and local governments.
The revenue growth continues an upward trend recorded over the past three years. Nigeria’s tax revenue increased from about ₦10.1 trillion in 2023 to ₦21.6 trillion in 2024, before rising further to ₦36.8 trillion in 2025. With half-year collections already at ₦21.6 trillion in 2026, officials believe the country is on track for another record-breaking performance.
Analysts attribute the improved performance to stronger tax administration, expanded use of technology, electronic invoicing for large taxpayers, tighter enforcement against revenue leakages and a more transparent tax collection system.
The tax reform laws signed by President Tinubu have also provided a modern legal framework aimed at promoting fairness, simplifying tax processes and encouraging greater voluntary compliance.
Nigeria’s approach mirrors reforms implemented in countries such as India, Brazil, Indonesia, South Africa and Mexico, where stronger tax systems and digital administration have significantly improved domestic revenue generation.
Beyond increasing government income, the reforms are expected to provide more resources for investments in infrastructure, healthcare, education, security, agriculture, digital development and social welfare programmes. They are also expected to reduce the country’s dependence on borrowing while strengthening fiscal stability.
The improved revenue outlook has also contributed to growing investor confidence, with Nigeria’s stock market ranking among the world’s top-performing equity markets since the introduction of the administration’s economic reforms.
Despite the progress, experts say further efforts are needed to expand the tax base by bringing more individuals and businesses into the formal economy. They also stress the importance of improving tax education, encouraging voluntary compliance and ensuring taxpayers see tangible improvements in public services.
According to the assessment, sustaining transparency, accountability and efficient revenue management will be critical to maintaining public confidence and ensuring the long-term success of the reforms.
One year after the tax reform laws came into effect, Nigeria appears to be making steady progress towards building a more diversified economy driven by sustainable domestic revenue rather than crude oil, with the Nigeria Revenue Service continuing to post record collections under the leadership of Dr. Zacch Adedeji.