Nigeria’s federal revenue rose to N3.65 trillion in September 2025, representing a 411% increase from N711 billion recorded in May 2023, according to the Federal Inland Revenue Service (FIRS).
FIRS Executive Chairman, Dr. Zacch Adedeji, announced the figures during a briefing with State House correspondents in Abuja. He attributed the surge to fiscal reforms, stronger compliance measures, and the growth of non-oil income streams, describing it as a major shift in the country’s revenue architecture.
Non-oil revenue grew by 599% from N151 billion in May 2023 to N1.06 trillion in September 2025, reflecting Nigeria’s diversification drive. Oil revenue also increased significantly from N96 billion to N644 billion, while VAT collections tripled to N723 billion from N218 billion.
Other agencies recorded strong gains. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revenue jumped to N745 billion from N125 billion, and the Nigeria Customs Service (NCS) rose to N322 billion from N106 billion. Between January and August 2025, FIRS collected N20.62 trillion in tax revenue, surpassing its 16.4% baseline growth target and putting the federal government on track to achieve its N25.2 trillion target by year-end.
Adedeji said reforms such as e-invoicing, updated excise regulations, and streamlined tax processes helped ease burdens on small businesses and improve compliance. He confirmed a presumptive tax regime is in development to capture hard-to-tax sectors, while plans are underway to harmonize state-level levies.
He also disclosed that Ways and Means advances from the Central Bank had been discontinued and reclassified as federal debt, with repayments underway. According to him, this move aims to strengthen exchange rate stability and fiscal discipline.
On borrowing, Adedeji maintained that loans targeted at infrastructure can be sustainable, provided they generate tax revenues in return. He added that comprehensive reforms to personal and company income taxes will begin in January 2026 to further broaden Nigeria’s tax base.
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