FIRS, Customs, Others Generate ₦21.22tn in Six Months
The Federal Government earned a total of ₦21.22 trillion from five major revenue-generating agencies in the first half of 2025, according to submissions to the Federation Accounts Allocation Committee (FAAC).
The agencies that contributed to the earnings include the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Ministry of Mines and Steel Development, and the Nigerian National Petroleum Company Limited (NNPC Ltd.).
Figures show that the FIRS led collections with ₦13.76 trillion between January and June. The NUPRC followed with ₦5.21 trillion, drawn largely from royalties and petroleum-related receipts, while the Nigeria Customs Service generated ₦2.02 trillion within the same period. The Ministry of Mines and Steel Development reported ₦32.39 billion, and commercial operations of NNPC Ltd. yielded ₦197.8 billion, although separate statutory remittances of ₦6.96 trillion were also recorded.
The combined performance represents about 42 per cent of the agencies’ annual target of ₦50.2 trillion and accounts for 58 per cent of the Federal Government’s overall revenue projection of ₦36.35 trillion for 2025 under the “Budget of Restoration.”
Officials credited the improved performance to tighter enforcement, expansion of the tax base, and ongoing digitalisation efforts.
Despite the revenue increase, Nigeria’s debt profile continues to rise. Latest figures from the Debt Management Office put public debt at ₦149.39 trillion as of March 31, 2025, compared to ₦121.67 trillion in the same period of 2024.
With borrowing approvals estimated at ₦38.24 trillion, projections suggest that the debt could surpass ₦182 trillion by 2026. Analysts warn that the country risks undermining its fiscal gains if borrowing continues to outpace revenue growth.
Concerns have also been raised over the high cost of collection, which stood at ₦658 billion in the first six months of the year. President Bola Tinubu has directed the Economic Management Team, led by Finance Minister Wale Edun, to review deductions and retention practices by revenue agencies.
He specifically queried the deductions allowed to NNPC Ltd. under the Petroleum Industry Act, which permits the company to retain 30 per cent for management fees and another 30 per cent for frontier exploration.
Economists remain divided on the issue. While some have applauded the president’s intervention as a necessary step toward boosting transparency and fiscal discipline, others caution that reforms must be carefully implemented to avoid creating inefficiencies within the agencies.
Revenue authorities, particularly FIRS and Customs, are also preparing for a digital transformation with the planned rollout of the National Single Window project in 2026. The initiative is expected to streamline trade processes, cut bureaucracy, and improve transparency in revenue collections.
With the second half of the year underway, the government faces pressure to sustain the current revenue momentum, reduce borrowing, and ensure that improved collections translate into tangible economic benefits for Nigerians.
