Adedeji calls for leadership transformation as non-oil taxes drive record revenue growth and improved compliance……
The Nigerian Revenue Service (NRS) has set an ambitious revenue target of 40.7 trillion naira for 2026 following what it described as a strong revenue performance in 2025.
The agency announced that it generated 28.3 trillion naira in 2025, representing a 30.3 per cent increase compared to the 21.7 trillion naira recorded in 2024.
The figures were disclosed on Tuesday during the NRS 2026 leadership retreat held in Abuja.
Speaking at the event, Chairman of the NRS, Zacch Adedeji, said the agency is entering a new phase that marks a departure from past operational approaches, stressing that a different leadership mindset will be required to meet rising expectations.
He urged leaders within the service to move beyond rigid hierarchies and traditional work culture, encouraging openness, collaboration, and honest self-reflection.
“This transition will not be secured by the weight of our positions or the familiarity of our structures. What brought us here will not be sufficient for where we are going,” Adedeji said.
He emphasised that institutional transformation depends more on leadership mindset than on policy or strategy documents, warning that unchallenged assumptions often slow down reform progress.
According to him, leaders must focus on empowering teams, prioritising outcomes over control, and creating room for innovation.
“The first step in this retreat is not strategy or technology. It is leadership self-examination,” he said.
Providing a breakdown of the agency’s performance, Executive Director for Government and Large Taxpayers, Amina Kurawa, said the NRS exceeded its revenue targets in most quarters of 2025.
She disclosed that the agency achieved 96.9 per cent of its target in the first quarter, 129.7 per cent in the second quarter, 131.9 per cent in the third quarter, and 90.4 per cent in the fourth quarter.
“Despite a dip in the fourth quarter, the year ended with a strong performance driven by improved compliance and voluntary filings,” Kurawa said.
She confirmed that total revenue reached 28.3 trillion naira in 2025, up from 21.7 trillion naira in 2024, with non-oil revenue emerging as the biggest contributor to growth.
According to her, non-oil tax revenue rose by 35 per cent year-on-year to 21.5 trillion naira, compared to 15.9 trillion naira recorded in 2024.
The increase was recorded across major tax streams, including value-added tax, company income tax, and capital gains tax, which collectively grew by 19 per cent.
Kurawa said oil tax revenue also increased to 6.8 trillion naira from 5.8 trillion naira in 2024, representing a 19 per cent rise.
She attributed the improved revenue performance to internal restructuring, policy reforms, and stronger enforcement mechanisms within the agency.
According to her, the service streamlined reporting lines, eliminated duplication of roles, and aligned tax offices and audit processes under a unified structure.
Kurawa added that automation and digitalisation played a key role in reducing manual bottlenecks and strengthening system-wide monitoring.
“The improved performance is a result of a disciplined approach and combined efforts across the service,” she said.
Looking ahead, she said the NRS will continue prioritising improved compliance while making the tax system easier for taxpayers, noting that initiatives such as electronic invoicing and an expanded withholding tax framework are expected to support revenue growth in 2026.
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