Nigeria’s Tax Revenue Reaches N7.44tn in Q1 2026, Falls Short by N2.24tn
Collections grew 23.2% year-on-year but fell short of the N9.68tn prorated target, recording a 76.87% performance rate
Nigeria generated N7.44 trillion in tax revenue in the first quarter of 2026, falling short of its prorated budget target of N9.68 trillion by N2.24 trillion, figures presented at the Federation Account Allocation Committee (FAAC) meeting have shown.
The shortfall translates to a performance rate of 76.87 percent, indicating that the Nigeria Revenue Service (NRS) collected less than four-fifths of what the government had projected for the period.
Despite missing the target, the Q1 2026 collections represented a notable improvement over the same period last year. Revenue grew by N1.40 trillion or 23.2 percent compared to the N6.04 trillion recorded in Q1 2025, which had actually exceeded its own target performance.
The NRS presented the figures at the FAAC meeting, where revenue generated by the federal government is shared among federal, state, and local governments.
The drop in target performance comes against the backdrop of sweeping tax reforms being implemented under new tax laws, which analysts say are still taking shape across key revenue-generating sectors.
Analysts note that while the year-on-year growth signals a strengthening revenue base, the widening gap between actual collections and budget projections raises questions about the pace of reform implementation and whether government revenue assumptions remain realistic in the near term.
The government has yet to issue a formal response to the shortfall, but the figures are expected to inform ongoing discussions around fiscal planning and revenue administration in subsequent quarters.
