Nigeria's tax revenue collections for the first quarter of 2026 amounted to N7.44 trillion. However, this figure fell short of the N9.68 trillion prorated budget target, indicating a performance rate of 76.87%.

This performance contrasts with the first quarter of 2025, when the Federal Inland Revenue Service (FIRS) exceeded its target. In Q1 2025, FIRS generated N6.04 trillion, surpassing its N5.82 trillion target by N218.02 billion, achieving a 103.74% performance rate.

The total tax revenue in Q1 2026 represents a year-on-year increase of N1.40 trillion, or 23.2%, compared to the N6.04 trillion collected in Q1 2025. Despite this growth, the agency moved from outperforming its target to recording a significant revenue gap.

An analysis of the Q1 2026 figures reveals that Companies Income Tax, Capital Gains Tax, and Stamp Duties were the largest contributors to the shortfall. These non-oil taxes generated N3.75 trillion against a target of N5.05 trillion, a deficit of N1.30 trillion and a performance rate of 74.25%.

Specifically, Companies Income Tax from upstream activities yielded N349.95 billion, falling short of its N523 billion target by N173.05 billion. Petroleum royalties also underperformed, with collections at N1.12 trillion against a target of N2.03 trillion, resulting in a deficit of N909.25 billion and a performance rate of 55.10%.

Value Added Tax (VAT) demonstrated relative stability, with total receipts reaching N2.42 trillion against a target of N2.49 trillion. This represents a modest shortfall of N73.71 billion and a performance rate of 97.04%.

Conversely, oil taxes performed strongly. Petroleum Profits Tax and Hydrocarbon Tax collections rose to N1.62 trillion in Q1 2026, exceeding the target of N1.30 trillion by N318.23 billion. This category achieved a performance rate of 124.42%.