By Aisha Muhammad Magaji
Nigeria’s federal revenue surged to ₦3.64 trillion in September 2025, marking a 411% increase from ₦711 billion in May 2023, according to the Federal Inland Revenue Service (FIRS). This unprecedented growth is attributed to comprehensive fiscal reforms introduced by President Bola Tinubu’s administration.
Key Highlights:
- Non-Oil Revenue Surge: Non-oil tax receipts climbed from ₦151 billion to ₦1.06 trillion, reflecting enhanced compliance and expanded tax coverage.
- Oil Revenue Increase: Oil-related revenues rose to ₦644 billion, up from ₦96 billion, due to improved management and higher global oil prices.
- VAT Growth: Value Added Tax (VAT) collections tripled to ₦723 billion, driven by streamlined processes and better enforcement.
Dr. Zacch Adedeji, FIRS Chairman, credited the revenue boom to the administration’s strategic reforms, including the removal of fuel subsidies, tax simplification, and digital compliance tools like e-invoicing. He emphasized that these measures have reduced
borrowing reliance, strengthened fiscal resilience, and sustained Nigeria’s economic growth trajectory.
Looking ahead, the FIRS plans to implement a new fiscal policy framework, harmonize subnational levies, and introduce a presumptive tax regime to further broaden the tax base.
Despite the revenue surge, Adedeji defended continued borrowing, stating that it remains a vital component of Nigeria’s development strategy, especially for funding infrastructure projects that will benefit future generations.
