Oluwafunbi Bello 
ABUJA, Nigeria – Nigeria’s Federal Government projects to generate ₦1.9 trillion in revenue in 2026 from a newly introduced development levy, marking one of the earliest fiscal impacts of the country’s sweeping 2025 tax reforms.
Figures contained in the 2026 Budget Call Circular show expected collections of ₦1.899 trillion in the levy’s first year of implementation, with revenue projected to rise to ₦2.41 trillion in 2027 and ₦3.13 trillion in 2028.
The levy, set at four per cent of companies’ assessable profits, is established under the Nigeria Tax Act 2025, signed into law on June 26, 2025, and takes effect from January 1, 2026.
Under the law, the development levy replaces several existing charges, including the Tertiary Education Tax, NITDA levy, NASENI levy and the Police Trust Fund levy, consolidating overlapping obligations into a single framework. “The Development Levy consolidates multiple statutory levies into one charge,” PwC says in a recent analysis, noting that combined rates under the old system exceeded four per cent.
Budget documents show that ₦1.80 trillion from the levy is earmarked for capital projects in 2026, alongside ₦120.75 billion for recurrent expenditure. Capital allocations are projected to rise to ₦2.98 trillion by 2028.
About the Author
Oluwatobi Adu 
Edino Chubiyo Cornelius 
Koko Maxwella 