Tag: NRS

The Executive Chairman of the Nigeria Revenue Service, NRS, Dr Zacch Adedeji, says the service is targeting N40 trillion in tax revenue for the federation in 2026.

He stated this on Tuesday in Abuja during a national workshop on strengthening tax compliance under the new tax regime and collaborating with sub-nationals for enhanced revenue collection.

The chairman, who was represented by Mohammed Lawal, called for stronger collaboration among all tiers of government to improve tax compliance and revenue collection nationwide.

According to him, achieving the target requires intensive capacity building, improved transparency, and robust partnerships across federal, state, and local government institutions to address compliance bottlenecks.

Mr Adedeji expressed concern over compliance imbalances among states and government-owned enterprises, describing the trend as harmful to institutional fairness.

To drive motivation, he announced plans to reward the most tax-compliant states starting from the end of 2026.

He expressed confidence that the workshop would deliver practical roadmap for transparency, administrative excellence, and high performance nationwide.

He noted that the revenue generated by the service sustains the Federation Account Allocation Committee (FAAC) and funds critical national development projects.

He said “the programme will improve awareness of statutory obligations on tax deductions and remittances among government agencies and enterprises.

 

“It will also sensitise stakeholders on the provisions of the new tax laws to reduce transition challenges and bridge compliance gaps identified during monitoring and audit activities.”

 

He emphasised that the ultimate goal of the service is to promote voluntary compliance instead of relying solely on enforcement measures.

 

The NRS boss commended President Bola Tinubu for introducing reforms that promote fairness, inclusiveness, and sustainability in Nigeria’s tax system.

 

He also praised the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, “for his unwavering support towards ongoing fiscal and tax reforms.”

 

 

The finance minister then affirmed that tax reforms remain central to Nigeria’s economic recovery and fiscal sustainability.

 

Oyedele, who was represented by his Chief of Staff, Mr Tolu Adegbie, noted that the country is currently balancing major reforms, including the naira flotation, fuel subsidy removal and inflation control, alongside growing socio-economic challenges.

 

He said the new tax regime is part of broader structural reforms targeting stable, predictable, and equitable revenue generation to fund roads, healthcare, education, and national security.

 

The minister assured that the reforms would expand the tax net without increasing the tax burden on citizens.

 

He added that the NRS is fully mandated to coordinate federation tax administration and ensure prompt remittance of withheld taxes.

 

“Technology adoption will help to block revenue leakages and improve voluntary tax compliance nationwide.

 

“Fiscal federalism can only succeed through shared commitment, harmonised processes, information sharing, and mutual accountability among all tiers of government,” Oyedele said.

 

He urged participants to develop practical solutions capable of accelerating revenue growth and strengthening public confidence in the tax system.

 

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, said efficient domestic resource mobilisation was critical to achieving sustainable development goals and reducing dependence on volatile revenue sources.

 

He noted that “the revenue administration can no longer operate in silos, particularly in areas of data management, taxpayer education, and compliance monitoring.

 

“Successful implementation of tax reforms depends heavily on stronger collaboration between the Federal Government and sub-national entities. Technology and innovation are central to these ongoing reforms.

 

“Digitalisation remains indispensable in improving efficiency and blocking opportunities for revenue leakages. We must continue to invest in integrated systems, taxpayer databases, and modern compliance tools.”

 

He added that tax compliance is a shared civic responsibility, noting that citizens are more likely to comply voluntarily when governments demonstrate transparency, accountability, and visible developmental projects.

NAN

 

The Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS), broke its record revenue collection, posting N28.3 trillion to surpass the set target of N25.2 trillion for 2025.

This was disclosed on behalf of the NRS executive chairman, Zacch Adedeji, by the executive director of the Government and Large Taxpayers Group, Amina Ado.

According to a statement by Dare Adekanmbi, NRS chairman’s media aide, Ms Ado spoke at the opening of a two-day management retreat with the theme “Designed to Adapt, Built to Deliver” in Abuja on Tuesday.

She also revealed that the revenue collection target for the agency for 2026 has been set at N40.71 trillion, 44 per cent higher than the 2025 target.

The executive director, while giving a breakdown of the 2025 collection figures, said non-oil taxes accounted for N21.4 trillion, against a projected N18 trillion.

Total oil tax collection, according to her, came to N6.8 trillion, representing 95 per cent of the N7.2 trillion target set for the sector.

She said that both oil and non-oil tax revenue grew year-on-year by 19 per cent and 35 per cent, respectively.

“For the year 2025, oil tax revenue totalled N6.6 trillion, representing a growth of 19 per cent over the N5.8 trillion realised during the corresponding period in 2024.

“Non-oil tax revenue for 2025 exceeded the 2024 total, reaching N21.5 trillion compared to N15.9 trillion for the same period in 2024, representing a growth of 35 per cent.

“This growth was driven by administrative enhancements, broadening of the withholding system, digitalisation efforts, improved tax compliance initiatives, and stronger enforcement tactics introduced by NRS,” she said.

She said the 44 per cent increase in the agency’s target was based on NRS’ expanded mandate as the country’s revenue system integrator.

Ms Ado said the mandate included the collection of royalty, hitherto the responsibility of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and so on.

Speaking earlier, the NRS chairman charged the agency’s management and staff to do away with old beliefs, as the credibility of Nigeria’s revenue architecture and confidence in the Nigerian economy rest on their hands.

“The Nigeria Revenue Service will not be defined by what we say in this room. It will be defined by who we become after we leave it,” he said.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who joined the event virtually, charged Nigerians to rely more on made-in-Nigeria products, saying this would reduce revenue losses.

“We talk about buying from West Africa or trading with Africa as a whole, but intra-Nigerian trade is critical. We all know what spending in Nigeria does for the economy; we know what it does for the revenue targets of NRS.

“The debt service that was paid by the developing countries in 2024 was 163 billion dollars, while the overseas development assistance that came in was $42 billion.

“The foreign direct investment and the private sector funding that came in from abroad to developing countries were just $97 billion,” Mr Edun said.

According to him, what developing countries are giving out exceeds what they are getting across the various categories.

“Clearly, it is what we do for ourselves internally that is going to be important at this time,” he said.

The minister reiterated the government’s desire to deliver in the areas of fiscal reforms and revenue mobilisation

Also speaking, the chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, stressed the need for clinical delivery and execution of the tax laws.

(NAN)