Non-oil revenue rose to N5.07 trillion in the second quarter of 2026, driven mainly by stronger collections from corporate income tax and customs and excise duties, reinforcing the Federal Government’s efforts to deepen domestic revenue mobilisation and reduce dependence on oil receipts.
The N5.07 trillion non-oil revenue represented a 7.50 percent increase over the preceding quarter, with the improvement attributed largely to seasonal increases in company tax payments and higher customs collections.
The performance came as the Federal Government continues to rely more heavily on taxation and other non-oil sources to finance public expenditure amid efforts to strengthen fiscal sustainability.
Corporate tax provided the strongest boost during the quarter, with collections rising from N1.233 trillion in the first quarter to N1.660 trillion in Q2, an increase of about 34.5 percent.
Customs and excise duties also increased from N959.56 billion to N1.001 trillion, representing a rise of about 4.3 percent.
Value Added Tax (VAT), however, moderated slightly, falling from N2.076 trillion in Q1 to N2.023 trillion in Q2, a decline of about 2.6 percent.
The stronger corporate tax performance is significant for the Federal Government as Nigeria implements its tax reform programme and seeks to expand the tax base, improve compliance and capture more economic activity within the formal tax system.
The development also comes against the backdrop of an emerging global push to change how multinational corporations are taxed.
A report by the Tax Justice Network and Public Services International estimates that countries could collectively raise an additional $500 billion annually from multinational corporations without increasing corporate tax rates if the international system moves from the traditional ‘pay-where-you-say’ model towards a ‘pay-where-you-play’ approach.
Under the proposed model, multinational companies would be taxed more closely in jurisdictions where they undertake real economic activities, including employing workers and producing and selling goods and services.
For Nigeria, the report estimated an additional $2.5 billion in annual corporate tax revenue, equivalent to a 641 percent increase in corporate tax collected from multinationals under the model. The estimate was reported by THISDAY, which noted that Nigeria’s 2025 tax legislation already contains measures aimed at preventing companies that profit from the Nigerian economy from escaping the tax net because of cross-border operations.
The proposed international tax framework could therefore have implications for Nigeria’s longer-term revenue mobilisation, particularly as the country seeks to improve tax compliance among multinational enterprises operating across multiple jurisdictions.
The Tax Justice Network said the additional revenue estimates are based on modelling of multinational profits and warned that the country-level dollar estimates involve assumptions about the distribution of currently uncovered multinational profits.
The organisation said negotiations on the UN Framework Convention on International Tax Cooperation continued in August 2026, with the allocation of taxing rights forming a central part of the discussions.
Meanwhile, Nigeria’s oil revenue also increased, reaching N3.24 trillion, up 29.17 percent, with higher crude oil production supporting receipts from petroleum profit tax, royalties and related petroleum revenue.
The combined performance of oil and non-oil receipts highlights the increasing importance of domestic tax collection to Nigeria’s fiscal position, particularly as the government seeks to create a more predictable and sustainable revenue base.
For businesses and investors, the trend points to a fiscal environment in which tax compliance, corporate profitability and customs activity will increasingly influence government revenue performance, while ongoing tax reforms could further reshape the distribution of the tax burden across sectors and multinational businesses.