Nigeria’s federal revenue has recorded a remarkable increase, rising by 411% over the past 16 months to reach ₦3.64 trillion in September 2025, up from ₦711 billion in May 2023, according to the Federal Inland Revenue Service (FIRS). FIRS Executive Chairman, Dr. Zacch Adedeji, revealed this during a press briefing at the Presidential Villa, Abuja, noting that the surge was largely driven by non-oil revenues, which climbed from ₦151 billion to ₦1.06 trillion in the same period. Oil revenues rose to ₦644 billion, while Value Added Tax collections more than tripled, reflecting the results of sustained tax reforms and the administration’s commitment to improving domestic resource mobilisation.
Dr. Adedeji attributed the gains to deliberate reforms under the President Bola Tinubu administration, highlighting the streamlining of multiple taxes, the reduction of compliance burdens on small and medium-sized enterprises, rationalisation of tax incentives, and the deployment of technology platforms like e-invoicing, e-filing, and data-driven audits to plug leakages. He also emphasised that borrowing is not inherently problematic but must be strategic and sustainable, pointing out that the administration is not borrowing to fund recurrent expenditure like salaries or subsidies but for investments and infrastructure that will generate long-term returns. Furthermore, the government has begun servicing inherited debt obligations, including the Central Bank’s Ways and Means overdraft, as part of efforts to restore fiscal stability and investor confidence.
The implications of this revenue growth are significant for Nigeria’s economic landscape. Firstly, the sharp increase demonstrates that domestic resource mobilisation can become a major driver of economic development, reducing overreliance on borrowing and volatile oil revenues. This positions the country for greater fiscal independence, allowing the government to channel funds into critical infrastructure, healthcare, education, and industrialisation projects without excessive external debt exposure. Secondly, the surge in non-oil revenue indicates that reforms targeting the informal sector, SMEs, and efficient tax administration are yielding tangible results, which could attract further domestic and foreign investment by signalling a more predictable and business-friendly fiscal environment.
Moreover, sustained revenue growth has broader implications for governance and economic planning. With higher internally generated funds, the government can prioritise development projects that directly improve citizens’ lives, such as roads, electricity, and social services, enhancing public confidence in state institutions. It also provides a platform for more deliberate fiscal discipline, as seen in the administration’s emphasis on borrowing only for productive projects. Finally, the success in revenue collection strengthens Nigeria’s credibility in the global financial community, supporting improved sovereign ratings and positioning the country as a hub for investment within the African Continental Free Trade Area.
In essence, Nigeria’s surge in federal revenue represents not just a fiscal milestone but a structural shift toward a more resilient, self-sustaining economy capable of supporting long-term growth, job creation, and poverty reduction.
📩 Reported by: Stone Reporters News
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