Nigeria’s federally collected revenue rose to ₦2.7 trillion in January 2026, giving the government a stronger start to the year after months of weak revenue performance.

The figure represents a 10 percent month-on-month increase and a 38 percent year-on-year rise, according to figures from the Central Bank of Nigeria’s monthly economic report cited by Proshare. The rebound ended five straight months of decline in federation receipts.

Non-Oil Revenue Drives the Recovery

The biggest lift came from non-oil revenue.

Non-oil collections rose by 40 percent month-on-month to ₦1.9 trillion in January. This means non-oil revenue accounted for about 69 percent of total federally collected revenue for the month.

That shift matters. It shows that Nigeria’s revenue base is becoming less dependent on oil receipts, at least in the short term.

The stronger performance came from major tax and trade revenue lines. Value-added tax rose by 62 percent month-on-month to ₦914 billion, while company income tax increased by 40 percent month-on-month to ₦470.3 billion. Customs and excise duties also climbed to ₦342.9 billion, up from ₦287.2 billion in the previous month.

Revenue Still Falls Below Budget Target

Despite the rebound, Nigeria’s revenue performance still missed the government’s target.

The January figure of ₦2.7 trillion came far below the projected ₦6.5 trillion for the month.

This gap shows the pressure facing public finances. The government needs stronger and more consistent revenue growth to fund infrastructure, debt service, salaries, social spending and economic reforms.

Why This Matters for the Economy

Higher federally collected revenue can improve cash flow for the federal, state and local governments.

It can also support public investment if the government manages spending better. However, the quality of revenue matters as much as the size.

A VAT-led rebound may show stronger tax collection. But it can also reflect higher prices in the economy. When inflation pushes up the value of goods and services, VAT receipts can rise even if real household purchasing power remains weak.

That is why analysts will watch the next few months closely. A one-month rebound is positive, but Nigeria needs a sustained improvement across tax compliance, trade flows, company profits and oil-related earnings.

Expert View

From a fiscal policy perspective, the January rebound offers relief but not comfort.

The stronger non-oil performance suggests that tax reforms and improved collection may be gaining traction. However, the large gap between actual revenue and the budget target shows that Nigeria still faces a credibility problem in revenue forecasting.

The government must widen the tax net without overburdening compliant businesses and households. It must also reduce leakages, improve customs efficiency and strengthen independent revenue collection.

For investors, the key question is whether this rebound can continue. A steady rise in non-oil revenue would support fiscal stability. A weak follow-up in February and March would show that January was only a temporary bounce.

FAQs

How much did Nigeria collect as federally collected revenue in January 2026?

Nigeria collected ₦2.7 trillion in federally collected revenue in January 2026.

What drove the revenue rebound?

The rebound came mainly from non-oil revenue, especially VAT, company income tax, customs and excise duties.

How much did non-oil revenue contribute?

Non-oil revenue rose to ₦1.9 trillion, accounting for about 69 percent of total revenue.

Did Nigeria meet its January revenue target?

No. The ₦2.7 trillion collected fell short of the government’s ₦6.5 trillion monthly projection.

Why is this important?

The data shows better revenue collection, but it also highlights Nigeria’s fiscal pressure and the gap between actual revenue and budget expectations.