Nigeria’s drive to boost domestic revenue by broadening the tax net, without burdening low income earners are showing early signs of progress as tax revenue collected across 23 states rose by 27 percent in the first half of 2026, according to data released by the Joint Revenue Board (JRB).

Olusegun Adesokan, executive secretary of JRB, said the tax revenue collected across the 23 states showed progress in the implementation of the new tax reforms.

He said that an average of 92 percent of income earners covered by the assessment paid lower or zero personal income tax (PIT) under the new framework, yet the states still generated approximately N2.2 trillion in H1 2026, compared with N1.75 trillion in the corresponding period of 2025.

“This reflects the Federal Government’s commitment to improving tax compliance and documentation, ensuring that all eligible taxpayers are identified and brought into the tax net, rather than relying on higher tax rates to drive revenue growth”, he said.

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Adesokan also credited this increase to the harmonization of taxes across 21 states, and the integration of a unified national Tax Identification Number system.

Joseph Osasebor, managing consultant at Ogie Megaconsulting, said these figures are worth cheering for, noting that more Nigerians fall into the 92 percent low income earners which are exempted under the law, but states still recorded higher revenue collections compared with the previous year.

He said the development underscores the importance of improving tax administration and expanding the tax base rather than imposing higher tax rates on a narrow pool of taxpayers.

“A better-administered tax system with a wider base definitely beats higher rates on a narrow one,” he said.

However, the increase in tax collections is yet to translate into stronger revenue performance across all states, with several governments still falling behind their annual revenue targets.

An analysis by BudgIT in its Subnational Budget Implementation Review showed that 11 states generated less than 20 percent of their budgeted annual revenue in the first half of 2026.

Lagos recorded the highest actual revenue of N1.684 trillion and achieved 38 percent of its N4.429 trillion annual target.

Oyo recorded the highest revenue performance at 66.4 percent, followed by Ondo at 59 percent.

The findings highlight the uneven capacity of states to mobilise revenue, despite the reported increase in tax collections across the 23 states.

The revenue challenge also extend beyond the states, with Taiwo Oyedele, minister of finance and coordinating minister of the economy, acknowledging a significant shortfall in the Federal Government’s revenue performance.

He noted that the Federal Government missed its 10-month revenue target by N20.74 trillion, representing a 44.2 percent deficit, highlighting the gap between budgeted revenue expectations and actual collections.

The development underscores the broader challenge facing Nigeria’s public finances, where improved tax collection in some states has yet to resolve the country’s wider revenue mobilisation constraints.

For the tax reforms to deliver lasting gains, analysts say government must sustain efforts to improve compliance, strengthen revenue administration and bring more eligible taxpayers into the tax net without increasing the burden on low-income earners.

The 27 percent growth in state tax collections offers an early indication of the potential of a broader tax base, but sustaining the gains will depend on how effectively states translate improved administration into consistent revenue growth and stronger fiscal capacity.