Hits ₦20.59 Trillion in Eight Months
By Ajewole Joshua| ABNews|
Abuja, September 3, 2025 — Nigeria has achieved its strongest fiscal performance in recent history, with non-oil revenues reaching unprecedented levels, according to new data released by the Presidency on Tuesday.
From January to August 2025, total government revenue collections stood at ₦20.59 trillion, representing a 40.5% increase compared to ₦14.6 trillion recorded during the same period in 2024. Of this amount, ₦15.69 trillion came from non-oil sources, signifying a major shift away from Nigeria’s long-standing dependence on crude oil earnings.
President Bola Tinubu, while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura, highlighted the remarkable growth, stressing that the performance was driven by ongoing reforms, digitisation of tax administration, and stricter compliance enforcement.
“For the first time in decades, oil is no longer the dominant driver of government revenue,”
said Bayo Onanuga, Special Adviser to the President on Information and Strategy.
“These reforms are powering a more resilient economy. The task ahead is to ensure these gains translate into better schools, hospitals, roads, and jobs for our people.”
Historic FAAC Disbursements to States
One of the most significant milestones of this fiscal turnaround is the record allocation of ₦2 trillion to states and local governments in July 2025 — the first time such a figure has been disbursed in Nigeria’s history.
The Presidency noted that this increase provides subnational governments with greater financial capacity to tackle key developmental challenges, including food security, infrastructure, and essential social services.
Why the Growth Matters
According to the Presidency, while inflation and foreign exchange revaluation contributed to the growth, the primary drivers were structural reforms, such as:
- Digitised tax filing systems
- Automation in Customs processes
- Stricter enforcement of compliance
- Broader revenue collection measures
The Nigeria Customs Service (NCS) alone recorded ₦3.68 trillion in collections in the first half of the year, exceeding its target by ₦390 billion and achieving 56% of its full-year goal.
Reduced Borrowing, Stronger Fiscal Position
President Tinubu also disclosed that, for the first time in many years, the Federal Government has stopped borrowing from local banks, attributing this to the robust fiscal performance seen so far in 2025.
However, he admitted that despite the gains, the current revenue levels are still not enough to fully meet his administration’s ambitious spending plans for education, healthcare, and infrastructure development.
Looking Ahead
The government assured Nigerians that final revenue figures for the year will be validated and published by the Budget Office, emphasizing transparency and accountability.
“Revenues are rising, the base is broadening, and our reforms are working,” the statement added.
“Now, our priority is to translate these numbers into tangible improvements in citizens’ lives — ensuring there is food on the table, jobs for young people, and quality infrastructure across the country.”
This latest fiscal performance comes at a time when Nigeria is seeking to diversify its economy, strengthen non-oil sectors, and create sustainable growth opportunities beyond the volatile global oil market.
