Figures cited by Vanguard show that the National Revenue Syndicate (NRS) has issued a stern advisory to the federal government, warning that the country’s ambitious N40 trillion annual revenue target faces severe disruption due to pervasive tax leakages and corporate avoidance. The syndicate noted that systemic loopholes in digital services taxation and informal commerce remain unaddressed.
The agency highlighted that while micro-enterprises bear the brunt of multiple taxation, several multinational firms and high-net-worth individuals exploit complex legal grey areas to underreport domestic earnings. The NRS called for a aggressive digital integration of the country’s tax database to track corporate transactions in real-time.
To avoid a widening budget deficit that could force the government into taking more external loans, the syndicate urged the Federal Inland Revenue Service (FIRS) to aggressively reform its compliance mechanisms. The body advised that blockading structural leaks should take precedence over raising existing tax rates on an already exhausted economic demographic.
Covering the economic fiscal warning, **The Punch** noted that unchecked tax evasion damages infrastructure funding, writing that “plugging corporate tax leaks could effortlessly rescue the federal budget from its chronic dependence on high-interest sovereign bonds.” Meanwhile, **Leadership** reported that legislative bodies are planning public hearings on tax laws, reporting that “lawmakers are looking to introduce tougher statutory penalties for digital multinational entities that obscure their domestic profit margins.”
Echotitbits take: Aiming for a N40 trillion revenue target is meaningless if the collection bucket is full of holes. Rather than squeezing formal small businesses, the focus must shift to taxing under-the-radar digital services and luxury corporate classes. Watch for incoming aggressive tax compliance audits by the FIRS before the end of the second quarter.
Source: Vanguard – https://www.vanguardngr.com/2026/05/nigerias-n40trn-revenue-target-under-threat-from-tax-leakages-nrs/, May 20, 2026
Photo credit: Punch Newspaper
