By Our Correspondent
Nigeria recorded a strong improvement in fiscal performance in 2025, with total tax revenue increasing by 30 percent to ₦28.3 trillion, compared to ₦21.7 trillion in 2024. The outcome surpassed the government’s initial target of ₦25.2 trillion by about 12 percent, reflecting better revenue mobilisation and improved tax administration across the country.
According to the Nigeria Revenue Service (NRS), the growth was driven by higher collections from both oil and non-oil sources. Non-oil revenue accounted for the larger share of the increase, highlighting ongoing efforts to reduce reliance on crude oil earnings. This shift forms part of broader economic reforms designed to diversify government income and strengthen long-term fiscal stability.
The agency linked the revenue rise to a wider tax base, better voluntary compliance, and closer monitoring of large taxpayers. Over the past year, authorities stepped up measures to block revenue leakages, automate collection processes, and strengthen institutional capacity. The expansion of digital tax systems and tighter enforcement also contributed to improved efficiency and transparency in revenue generation.
Although quarterly collections showed minor variations, the overall trend throughout 2025 remained upward. This steady growth points to growing confidence in Nigeria’s tax framework and suggests that ongoing fiscal reforms are producing measurable outcomes. Analysts note that maintaining transparency, policy consistency, and economic stability will be essential to sustaining this progress.
Looking ahead, the NRS has set a revenue target of ₦40.7 trillion for 2026, representing a projected 44 percent increase over the 2025 figure. Meeting this objective will require continued reform efforts, deeper digitalisation, and further expansion of the non-oil tax base. Supportive economic policies that encourage business growth while ensuring fair taxation will also play a key role.
The rise in tax revenue is expected to reduce pressure on government borrowing and provide additional resources for infrastructure, healthcare, education, and other public services.
While the 2025 performance marks a major step forward in Nigeria’s fiscal management, sustaining this trajectory will depend on steady reform implementation, economic resilience, and effective revenue administration.
