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Reading: FG, NRS Push for Stronger Tax Compliance as Nigeria Targets ₦40 Trillion Revenue in 2026
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Firm News > Blog > Business > FG, NRS Push for Stronger Tax Compliance as Nigeria Targets ₦40 Trillion Revenue in 2026
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FG, NRS Push for Stronger Tax Compliance as Nigeria Targets ₦40 Trillion Revenue in 2026

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Last updated: May 20, 2026 12:38 pm
Firmnews
6 months ago
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The Federal Government and Nigeria Revenue Service (NRS) have called for deeper collaboration with states and government agencies to boost tax compliance under the country’s new tax regime, as authorities target ₦40 trillion in tax revenue for 2026.

Speaking at a national workshop in Abuja on strengthening tax compliance under the new tax regime: Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele said the reforms are designed to shift Nigeria away from volatile revenue sources toward a stable, predictable, and equitable tax system.

“We are not here to just talk about administrative rules and regulatory guidelines; we are here as State actors to actively thinker on implementation of the new tax reforms and shape our fiscal architecture to provide sustainable funds,” Oyedele told participants at the workshop organized by the Government Business Group and the Government and Large Taxpayers’ Directorate of Nigeria Revenue Service (NRS) at Transcorp Hilton.

He described taxes as “the social contract in action,” noting that they fund roads, healthcare, education, and security. For the system to work, he said, it must be transparent and consistently applied across federal, state, and local levels.

Oyedele stressed that the new framework aims to expand the tax net without raising the burden on taxpayers by improving voluntary compliance and using technology to plug leakages. He also urged sensitivity to the economic realities of states and local governments where much of the economic activity occurs.

NRS Executive Chairman Dr. Zaach Adedeji said the service is focused on improving compliance and collection efficiency across all tiers of government. He said the workshop was designed to close compliance gaps identified in monitoring and audits, improve communication, and reduce transitional challenges under the new tax laws.

“The stakes are higher this year as the NRS is faced with the Herculean task of raising about ₦40 trillion in tax revenue for the Federation,” Adedeji said.

He noted that uneven compliance among states and government-owned enterprises undermines fairness and places an unfair burden on compliant jurisdictions. To address this, NRS will launch an initiative in 2026 to recognize the most tax-compliant states across multiple dimensions.

Amina Ado, Executive Director of the Large Taxpayer and Government Directorate, said monitoring has shown “significant structural leakages” in the prompt deduction and remittance of Value Added Tax and Withholding Tax by some sub-national entities.

She said the directorate is shifting from an enforcement-heavy approach to a collaborative model, supported by technology-driven platforms to embed compliance into daily operations.

The officials agreed that sustainable revenue growth requires harmonized processes, information sharing, and mutual accountability between federal and sub-national governments.

The workshop brought together heads of ministries, departments, agencies, and government-owned enterprises to align on statutory obligations, reduce bottlenecks, and promote timely remittance of withheld taxes.

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