Nigeria’s tax revenue collection fell short of its first-quarter 2026 target by N2.24 trillion, according to documents presented by the Nigeria Revenue Service (NRS) at Federation Account Allocation Committee meetings.
The reports showed that the NRS generated N7.44 trillion between January and March 2026 against a projected target of N9.68 trillion, representing a performance rate of 76.87 per cent.
The development comes amid the implementation of sweeping tax reforms and the transition from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service under the new tax regime introduced in January 2026.
Analysis of the figures revealed major shortfalls in Companies Income Tax and non-oil revenues, while oil-related taxes and Value Added Tax recorded relatively stronger performance during the period.
Meanwhile, the NRS has warned states, Ministries, Departments, and Agencies that failure to remit taxes could trigger direct deductions from their FAAC allocations under the provisions of the Nigerian Tax Administration Act.
The agency said stricter compliance measures are now being enforced as it targets about N40 trillion in tax revenue for the federation.
