West Africa’s largest economy, Nigeria has recorded a significant boost in revenue collection in 2025, generating ₦28.3 trillion against a target of ₦25.2 trillion, representing 112% of the annual goal and about a 30% increase compared to 2024.
The strong performance was largely driven by non-oil tax collections, underscoring ongoing efforts to diversify government revenue sources away from crude oil dependence.
Quarterly figures showed consistent growth throughout the year, reflecting improved efficiency and stronger compliance across the tax system.
A breakdown of the figures shows that oil tax revenue stood at ₦6.8 trillion, slightly below the ₦7.2 trillion target, translating to a 95% performance. In contrast, non-oil revenue significantly outperformed expectations, with ₦21.5 trillion collected against a target of ₦18.0 trillion.
This marks a sharp rise from the ₦15.9 trillion recorded in 2024, reinforcing the growing importance of non-oil sources to Nigeria’s fiscal stability.
By tax type, Company Income Tax (CIT) and Value Added Tax (VAT) emerged as the strongest contributors, both surpassing their respective targets.
However, earmarked taxes — including those linked to agencies such as NASENI and NITDEF — fell short of projections in 2025.
Monthly performance data also reflected a stronger year-on-year showing, with collections in 2025 exceeding those of 2024 in nearly every month except October.
Authorities also reported notable improvements in compliance, with increases recorded in tax filing and payment levels throughout the year.
Officials attributed the overall success to coordinated institutional reforms, including the redesignation of structures within the revenue service to eliminate duplication of functions and improve operational efficiency.
Stricter enforcement of penalties for non-compliance also played a key role in boosting collections.
The improved performance signals growing momentum in Nigeria’s revenue mobilisation drive, particularly in strengthening non-oil tax collection as part of broader fiscal reforms aimed at enhancing sustainability and reducing reliance on oil earnings.
(Editor: Ken Eseni)
