The Executive Chairman of the Nigeria Revenue Service (NRS), Zach Adedeji, has said that in light of the tax reforms, the total target for taxes, royalty and other minerals is N40.7 trillion for 2026.

He said this when the economic team of the President, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, as well as the Minister of Budget and National Planning, Atiku Bagudu, appeared before the House Committee on Appropriation.

“In the light of the tax reforms that transfer petroleum and mineral royalty and other revenue to the NRS, the total target for taxes, royalty and other minerals is 40.7 trillion.

“We believe that with the support of the House, we would be able to achieve what we propose,” he said.

Adedeji explained that for the year 2025, the revenue target for the service was N25.2 trillion, an increase of N3.5 trillion compared to the actual revenue collected in 2024.

He said the service has succeeded in the 2025 target by collecting N28.23 trillion.

He said this was due to exceptional performance from non-oil taxes.

According to him, non-oil taxes exceeded their target by collecting N21.46 trillion, an increase of 3.4 trillion.

He said, meanwhile, oil taxes fell short of the target by 5.2 per cent.

He said overall the Service exceeded its target by 3 trillion, which is 12 per cent compared to the target we had for 2025.

“When you compare 2025 performance to 2024, the service collected N6.5 trillion more than we did in 2024. That is an increase of 30.3 per cent. This is driven significantly by non-oil taxes. ”

He said for the 2026 target, “in the light of the forecast that we have for oil, from that N25.2 trillion that we did last year, we forecasted that we would do N32.14 trillion for 2026, which is N3.85 trillion higher than the actual collection in 2025.”

He said the increase is forecast on oil related revenue to non-oil is due to a higher production forecast from 1.7 million barrels per day in 2025 to 1.8 million barrels per day in 2026.

“For the year 2025, the revenue target for the service was 25.2 trillion, an increase of 3.5 trillion compared to the actual revenue collected in 2024. The service has succeeded in the 2025 target by collecting 28.23 trillion. This is due to exceptional performance from non-oil taxes.

“Non-oil taxes exceeded their target by collecting 21.46 trillion, an increase of 3.4 trillion. Meanwhile, oil taxes fell short of the target by 5.2 per cent. Overall, the service exceeded its target by 3 trillion, which is 12 per cent compared to the target we had for 2025.

“When you compare 2025 performance to 2024, the service collected 6.5 trillion more than we did in 2024. That is an increase of 30.3 per cent. This is driven significantly by non-oil taxes.

“For the 2026 target in light of the forecast that we have for oil, from the 25.2 trillion that we did last year, we forecast that we would do 32.14 trillion for 2026, which is 3.85 trillion higher than the actual collection in 2025.

“The increase is forecast on oil related fo non oil is due to a higher production forecast from 1.7 million barrels per day in 2025 to 1.8 million barrels per day in 2026.”

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said before the administration of President Bola Tinubu, there was a heavy reliance on ways and means financing to cover a large fiscal deficit, while NNPC funded the petrol subsidy through and under recovery arrangement.

This approach, he said, was unsustainable, adding that in order to correct the major distortion and replace it with the market based solution.

He said the president had halted the unchecked ways and means already at 30 trillion.

This, he said, was essential for restoring macroeconomic stability, but it did need a large funding gap.

He said the issue of the zero performance in the 2025 budget was delegated to the Minister of State for Finance, whom the lawmakers invited to appear before the Committee on Thursday.

Minister of Budget and National Planning, Atiku Bagudu, said in various sessions with the National Assembly, one of the agreements was to move 70 per cent of the capital for 2025 into 2026.

He said on the budget performance feeders, the Ministry of Budget and Planning, including the budget office, relies on the office of the accountant general and the Ministry of Finance for data about budget implementation.

Chairman of the House Committee on Appropriations, Abubakar Bichi, said it was necessary to have the interaction with the team in respect of the 2026 appropriation bill.

“This is for us study, consider, and approve the request. We decided to engage the team of the president to discuss the previous performance of 2025 as well as the proposed 2026.

“We have decided to engage the NRS Chairman to shed more light on the revenue in terms of the 2026 projections. In 2025, we have achieved about 28 trillion from our revenue, from the target of 25 trillion.

“We need to have more information from you so that Nigerians can know what is going on.”