Nigeria started 2026 expecting stronger tax revenue under new reforms, yet Q1 results told a mixed story.
The Nigeria Revenue Service (NRS) collected ₦7.44 trillion between January and March 2026, but it missed the ₦9.68 trillion target by ₦2.24 trillion.
Overall, it achieved a 76.87% performance rate, even as revenue grew year-on-year.
Q1 Tax Revenue Misses Target
By comparison, the Federal Inland Revenue Service (FIRS) exceeded its target in Q1 2025, as it raised ₦6.04 trillion against ₦5.82 trillion.
As a result, revenue rose by ₦1.40 trillion or 23.2%, although performance weakened against projections.
Weakness In Tax Categories
Furthermore, Companies Income Tax, Capital Gains Tax and Stamp Duties pulled down total earnings.
Together, they brought in ₦3.75 trillion, while the target stood at ₦5.05 trillion.
Similarly, upstream oil taxes underperformed, as they generated ₦349.95 billion against ₦523 billion.
In addition, petroleum royalties widened the gap by bringing in ₦1.12 trillion instead of ₦2.03 trillion.
VAT And Oil Taxes Support Growth
However, VAT provided some stability, as it generated ₦2.42 trillion, only slightly below the ₦2.49 trillion target.
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Meanwhile, oil taxes supported overall performance, as Petroleum Profits Tax and Hydrocarbon Tax reached ₦1.62 trillion, above the ₦1.30 trillion goal.
In contrast, mineral royalties delivered nothing despite a ₦24 billion target.
March Performance Shows Slight Recovery
In March 2026, the NRS collected ₦2.31 trillion, yet it still missed the ₦3.23 trillion target.
Still, it improved from February by ₦120.66 billion.
Oil taxes slightly exceeded expectations, while CIT, CGT and Stamp Duties fell sharply to ₦477.54 billion against ₦1.07 trillion.
Additionally, VAT reached ₦664.42 billion, but weaker consumption dragged it below target.
The month also included ₦294.58 billion in non-cash payments.
Finally, NRS Chairman Zach Adedeji said reforms should lift collections to ₦40.7 trillion in 2026, up from ₦28.23 trillion in 2025.