Nigeria’s Federal Revenue Hits N3.64 Trillion

Nigeria’s federal revenue has reached a staggering N3.64 trillion, marking a 411% increase from N711 billion in May 2023.

Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), attributed this remarkable growth to President Bola Tinubu’s bold fiscal reforms.

The revenue breakdown shows non-oil revenue surged to N1.06 trillion, representing a significant shift in Nigeria’s earnings profile, up from N151 billion in May 2023. Oil revenue also grew substantially to N644 billion, while Value Added Tax (VAT) collections tripled to N723 billion due to stronger compliance and improved efficiency.

According to Adedeji, the reforms driving this growth include streamlining taxes, easing burdens on small and medium-sized enterprises (SMEs), and introducing digital compliance tools like e-invoicing and updated excise regulations.

A presumptive tax regime is being developed to capture hard-to-tax sectors, while state-level levies will be harmonized to broaden the national tax base.

Looking ahead, the FIRS plans to commence Personal and Company Income Tax reforms in January 2026, aiming to further expand Nigeria’s revenue base and enhance fiscal resilience. Additionally, unbacked Ways and Means advances from the Central Bank have been discontinued and reclassified as federal debt, with both principal and interest being repaid to ensure exchange rate stability and system confidence.

Adedeji emphasized that borrowing for infrastructure development is a vital tool for economic sustainability when properly legislated and directed towards projects generating future tax revenues.

“Borrowing funds infrastructure that generates future tax revenues from beneficiaries. This is a sustainable approach for long-term development,” he explained.