Nigeria’s federal revenue indeed surged to N3.65 trillion in September 2025, marking a significant 411% increase from N711 billion in May 2023. Here’s a breakdown of the revenue growth:
– Revenue Streams:
– Non-Oil Revenue: Jumped by 599% from N151 billion to N1.06 trillion, showcasing the country’s progress in economic diversification.
– Oil Revenue: Rose from N96 billion to N644 billion.
– Value Added Tax (VAT): Tripled to N723 billion from N218 billion, driven by stronger compliance and improved efficiency.
– Nigerian Upstream Petroleum Regulatory Commission (NUPRC): Revenue increased to N745 billion from N125 billion.
– Nigeria Customs Service (NCS): Recorded N322 billion, up from N106 billion.
Factors Contributing to Revenue Growth:
– Fiscal Reforms: Streamlined tax processes, reduced burdens on small and medium-sized enterprises (SMEs), and digital compliance tools like e-invoicing.
– Enhanced Compliance Mechanisms: Stronger enforcement and improved efficiency across key sectors.
– Diversification Efforts: Focus on non-oil income streams.
Future Plans:
– Comprehensive Reforms: Personal and Company Income Tax reforms set to begin in January 2026 to further expand Nigeria’s revenue base and enhance fiscal resilience.
– Presumptive Tax Regime: Being developed to capture hard-to-tax sectors.
– State-Level Levies Harmonization: Efforts underway to broaden the national tax base.
