Nigeria’s federal government has recorded a significant shortfall in its first-quarter 2026 tax revenue performance, falling behind its target by approximately N2.24 trillion.
According to official fiscal data, total tax collections for the period stood at N7.44 trillion, compared to a projected N9.68 trillion. This translates to a performance rate of 76.87%, highlighting gaps in revenue mobilisation across several key sectors.
Corporate-related taxes were the weakest area of performance during the quarter. Collections from company income tax, capital gains tax, and stamp duties fell well below expectations, creating a deficit estimated at N1.30 trillion. This underperformance was largely linked to reduced remittances from businesses and broader compliance challenges.
In contrast, oil-related tax revenues provided some support to overall inflows. Petroleum profit tax and hydrocarbon-related levies rose to about N1.62 trillion, exceeding earlier projections due to relatively improved earnings in the energy sector.
Value Added Tax (VAT) remained more stable, generating approximately N2.42 trillion, although it still slightly missed its target. However, petroleum royalties performed poorly, recording a shortfall of about N840 billion, while mineral royalties contributed almost nothing within the review period.
Fiscal authorities attribute the revenue gap to weaker corporate tax compliance, structural adjustments within the tax administration system, and transitional challenges affecting collection efficiency.
No verified official quotations were available at the time of reporting.
Despite the shortfall, total tax inflows for the quarter showed year-on-year improvement, but still underscored the widening gap between government revenue expectations and actual collections under the current fiscal framework.
