By Ajibola Olaide, JKNewsMedia Reporter
FEDERAL REVENUE surged to N3.65 trillion in September 2025, representing a 411 percent rise from the N711 billion recorded in May 2023 when the present administration assumed office.
The figures were disclosed by Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), during a briefing with State House correspondents in Abuja.
Adedeji attributed the performance to comprehensive tax reforms, enhanced compliance measures, and the expansion of non-oil revenue streams that have reshaped Nigeria’s fiscal framework.
He explained that the growth underlines the impact of targeted reforms introduced under President Bola Tinubu’s administration, including the rollout of digital compliance tools, streamlined tax processes, and stricter enforcement mechanisms.
The FIRS chairman stressed that government borrowing would remain an integral part of national fiscal planning despite improved collections.
He described borrowing as a globally recognised fiscal tool when properly legislated and applied to productive investments.
“Borrowing is not a problem. When you see we borrow, it is part of an economic plan. Don’t forget that banks are part of our economic ecosystem,” Adedeji said.
Revenue performance reflected broad-based growth across key sectors. Non-oil revenue climbed from N151 billion in May 2023 to N1.06 trillion in September 2025, an increase of 599 per cent.
Oil revenue also strengthened, moving from N96 billion to N644 billion in the same period.
Value Added Tax collections rose sharply, reaching N723 billion from N218 billion, a development linked to stronger compliance and efficiency gains.
Further sectoral improvements were recorded with the Nigerian Upstream Petroleum Regulatory Commission, which generated N745 billion in September 2025 compared to N125 billion in May 2023, while the Nigeria Customs Service rose to N322 billion from N106 billion.
Between January and August 2025, FIRS collected N20.62 trillion, marking a 40.8 per cent increase compared to the same period in 2024 and exceeding the agency’s baseline growth target of 16.4 per cent for the year.
The president had earlier announced on September 2 that Nigeria achieved its 2025 revenue target well ahead of schedule. Speaking on the development,
President Tinubu said the early attainment was evidence of progress in stabilising the economy through non-oil income sources despite global economic pressures.
He disclosed that the federal government generated N20.59 trillion between January and August 2025, with non-oil revenue contributing N15.69 trillion of the total.
Tinubu explained that the numbers demonstrated the government’s resolve to build a diversified economy.
“We have achieved the revenue target for the year ahead of schedule. This shows the reforms are working, and our commitment to building a resilient and sustainable economy is clear,” the president stated.
He actually emphasised that revenue growth would remain at the centre of the administration’s plan to fund infrastructure and social investment programmes.
Adedeji echoed the president’s position, noting that reforms have reduced burdens on small and medium-sized enterprises and introduced tools such as e-invoicing and updated excise frameworks.
He disclosed that a presumptive tax regime is being developed to cover hard-to-tax sectors, while harmonisation of state-level levies is also in progress.
The FIRS chairman confirmed that unbacked Ways and Means advances from the Central Bank had been discontinued.
He explained that these loans have been reclassified as federal debt, with repayment of both principal and interest ongoing as part of measures to stabilise the exchange rate and reinforce fiscal discipline.
On borrowing, Adedeji clarified that debt incurred by the government is channelled toward infrastructure, which is expected to generate tax revenues from users in the future.
“Borrowing funds for infrastructure that generates future tax revenues from beneficiaries is a sustainable approach for long-term development,” he said.
He compared the fiscal strategy to the principle of matching costs to future benefits, noting that loans taken today for roads and other infrastructure will serve citizens and businesses for generations.
He further explained that borrowing remains within the ceiling approved by the National Assembly, dismissing concerns that the government was operating outside legislative approval.
“Any company or any country that will grow has to borrow because it is part of the ecosystem of a viable nation.
“When Mr President said we have met, or we are doing well in revenue, and they said why are they borrowing?
“Is borrowing not part of the budget we submitted to the national assembly? Is it not what is approved? Are we borrowing outside what is approved?” he asked.
Looking ahead, Adedeji projected that revenue collections could reach N30 trillion in 2026, supported by ongoing reforms and the consolidation of tax compliance mechanisms.
He confirmed that comprehensive reforms to Personal and Company Income Tax will begin in January 2026, a step designed to broaden the national tax base and further strengthen fiscal resilience.
The latest revenue figures were released just days after FIRS issued a directive mandating strict compliance with withholding tax regulations on interest earned from short-term securities.
The directive, signed by Adedeji, was addressed to banks, discount houses, stockbrokers, corporate bond issuers, primary dealer market makers, financial institutions, government agencies, tax practitioners, and the general public.
It reinforced provisions under Sections 78(1) and 81(1) of the Companies Income Tax Act, as amended, and the 2024 Withholding Tax Regulations.
The presidency stated that revenue growth, combined with prudent borrowing, would anchor fiscal stability and support long-term investment in critical infrastructure.
According to the revenue service, the early revenue performance demonstrates the effectiveness of ongoing reforms and a renewed focus on diversifying Nigeria’s economy beyond oil dependence.
