By Ayo Kehinde 
Nigeria’s tax collections rose by 113 percent from ₦12.3 trillion in 2023 to ₦27.1 trillion as of July 2026, according to an internal report by the Nigeria Revenue Service.
The revenue authority attributed the increase to the digitisation of the tax system, the enactment of four new tax reform laws, reforms within the agency and an executive order designed to close loopholes.
The NRS said the development was part of broader reforms that had moved the economy from what it described as severe macroeconomic distress towards greater stability.
It identified the major challenges inherited by the Bola Tinubu administration as an unsustainable fuel subsidy regime, an opaque foreign exchange system, weak oil-sector performance and a tax base below its potential.
The revenue service said the initial impact of the reforms created significant economic difficulties but argued that key indicators had subsequently improved.
Crude oil production, according to the report, increased from about 1.2–1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026, equivalent to 104 percent of Nigeria’s OPEC quota.
The NRS also cited the naira-for-crude arrangement involving the Dangote Petroleum Refinery and other domestic refineries, saying the policy had helped Nigeria move from dependence on imported petroleum products to becoming a net exporter.
Nigeria’s external reserves also increased from $3.99 billion in 2023 to $51.9 billion by July 2026, which the NRS described as a 17-year high.
The country’s balance of payments moved from a $3.34 billion deficit to a $2.38 billion surplus in Q1 2026, while the trade balance strengthened from a marginal ₦44.7 billion surplus to ₦7.55 trillion.
Exports of other oil products, excluding crude, also rose by 51 percent year-on-year to ₦6.78 trillion during the first quarter. Capital importation increased from $3.9 billion in 2023 to $23.22 billion in 2025, while inflows reached $10.37 billion in Q1 2026.
The NRS said the increase reflected stronger investor confidence as reforms reshaped the operating environment.
It also noted that NGX market capitalisation rose from ₦30.36 trillion in 2023 to about ₦161 trillion in 2026, attributing the increase partly to improved macroeconomic credibility, bank recapitalisation and growing domestic institutional investment. On public debt, the NRS acknowledged that Nigeria’s debt stock rose from ₦87.4 trillion in 2023 to ₦159.28 trillion in late 2025. However, it said the debt-to-GDP ratio declined from 38 percent in 2023 to 32.3 percent in 2026.
The revenue service said the combination of higher tax collections, stronger oil production, rising reserves and improved external-sector indicators showed an economy gradually emerging from the pressures of the early reforms.
It nevertheless acknowledged that the gains followed “painful” adjustments and stressed that continued implementation would be required to sustain the recovery.
