…surpassed 2025 collection by 12%

As the Nigeria Revenue Service (NRS), formerly Federal Inland Revenue Service (FIRS), unveils a N40.71 trillion tax collection target for the current year, members of the Orginised Private Sector (OPS) have cautioned Nigerians, business owners and potential investor not to entertain any fear.

The private sector group comprising business membership organizations, namely: Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), Nigeria Employers Consultative Association (NECA), the Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Small Scale Industrialists (NASSI), and Centre for the Promotion of Private Enterprise (CPPE), stated that it expected the target not to strangulate businesses since the Federal Government promised not to impose new taxes this year.

Disclosing the new revenue target at the opening of a two-day management retreat with the theme “Designed to Adapt, Built to Deliver” held at the Congress Hall, Transcorp Hilton Hotel in Abuja, on Tuesday, the NRS Executive Chairman, Zacch Adedeji, represented by the Executive Director, Government and Large Taxpayers Group, Ms Amina Ado Kurawa, also said NRS broke its record revenue collection performance for last year, posting N28.3 trillion to surpass the set target of N25.2 trillion.

The executive director, while giving a breakdown of the 2025 collection figures and how the agency surpassed the last target by 12 per cent, said non-oil taxes accounted for N21.4 trillion of the collection, against N18 trillion projected. 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.

Both oil and non-oil tax revenue grew year on year by 19 per cent and 35 per cent, respectively. She said: “For the year 2025, oil tax revenue totalled N6.6trillion, representing a growth of 19 per cent over the N5.8 trillion realized 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, digitalization efforts, improved tax compliance initiatives and stronger enforcement tactics introduced by NRS.”