Nigeria’s revenue collection has reached unprecedented levels, with the Federation Account recording N23.06 trillion in accruals between January and October 2025, according to official figures released by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The ten-month performance has already exceeded the entire 2024 fiscal year total of N21.43 trillion, marking a dramatic acceleration in the country’s revenue mobilization efforts and underscoring the tangible impact of recent fiscal reforms.
Dr. Mohammed Shehu, Chairman of RMAFC, unveiled the figures on Monday during a two-day National Stakeholders’ Discourse in Abuja focused on fiscal efficiency under the newly enacted Nigeria Tax Act, 2025. The gathering brought together government officials, tax experts, and private sector representatives to examine implementation strategies for the forthcoming tax reforms.
The revenue trajectory tells a compelling story of reform-driven growth. From N11.93 trillion recorded in 2023—representing early gains under the current administration’s fiscal policies—collections nearly doubled to N21.43 trillion in 2024. The 2025 figures suggest this momentum is not only sustained but accelerating.
“Accruals for January to October 2025 alone reached N23.06 trillion, surpassing the full-year figures of previous years,” Shehu stated, emphasizing the significance of consecutive year-over-year improvements.
According to the RMAFC chief, the remarkable revenue performance stems from several strategic interventions. Digital revenue tracking systems have enhanced transparency and reduced leakages, while improved coordination among revenue-generating agencies has closed gaps in collection efficiency. Stronger audit mechanisms and enhanced compliance frameworks have also contributed to expanding the revenue base across both oil and non-oil sectors.
The reforms have produced practical benefits beyond mere revenue increases. Statutory allocations to federal, state, and local governments have been strengthened, while reduced volatility and decreased over-dependence on oil revenues have made Nigeria’s fiscal position more resilient to external shocks.
Looking ahead, stakeholders are preparing for the implementation of the Nigeria Tax Act, 2025, which takes effect in January 2026. The legislation, born from extensive consultations by the Presidential Committee on Fiscal Policy and Tax Reform, represents a comprehensive overhaul of the country’s tax administration system.
The committee’s work produced four tax reform laws, all assented to in June, designed to streamline administration, reduce compliance costs, and strengthen revenue governance. The new framework harmonizes previously fragmented tax laws, eliminates duplication, and aims to improve Nigeria’s business environment while creating a more predictable and sustainable fiscal structure.
In a significant policy shift aimed at easing the burden on citizens, Taiwo Oyedele, Chairman of the Tax Reforms Committee, announced that beginning January 2026, Nigerians will no longer pay certain basic taxes on essential items, including food, shelter, and education. This measure seeks to improve equity within the tax system while creating a fairer distribution of the tax burden.
“The new tax reforms are aimed at creating a fairer, simpler, and more efficient tax system that boosts economic growth and government revenue,” Oyedele explained, highlighting the dual objectives of revenue enhancement and social equity.
Multiple speakers at the discourse emphasized that successful implementation will require unprecedented collaboration across government tiers, legislative bodies, regulatory agencies, and the private sector.
Dr. Dele Alake, Minister of Solid Minerals Development, speaking through his representative, Mr. Peluola Olusegun, stressed RMAFC’s constitutional mandate as central to Nigeria’s governance architecture. He highlighted the solid minerals sector as presenting significant opportunities for renewable energy development and economic diversification.
Mr. Desmond Akawor, Chairman of RMAFC’s Fiscal Efficiency and Budget Committee, described the Tax Act as a major reform milestone designed to modernize administration, strengthen compliance, close revenue leakages, and expand the revenue base across all government tiers.
“For these reforms to achieve their intended outcomes, active participation, cooperation, and a shared understanding among all relevant stakeholders remain indispensable,” Akawor stated, underscoring the collaborative imperative.
As Nigeria prepares to implement its most comprehensive tax reforms in recent history, the current revenue performance provides both validation of reform efforts and momentum for the transition ahead. The RMAFC has reaffirmed its commitment to monitoring accruals and safeguarding federation revenues through enhanced transparency and accountability measures.
With the stakeholders’ discourse focused on deepening understanding of the Act’s implementation framework and addressing public misconceptions, officials are working to ensure smooth adoption of the new system when it launches in January 2026.
The question now is whether the new tax regime can sustain and build upon the impressive revenue growth achieved under the current framework while delivering on promises of reduced burden for ordinary citizens and improved business conditions for the private sector.
WHAT YOU SHOULD KNOW
Nigeria has achieved a historic revenue milestone, collecting N23.06 trillion in just ten months of 2025—already surpassing the entire 2024 total of N21.43 trillion. This represents a doubling of revenue from the N11.93 trillion recorded in 2023.
What’s driving this growth? Digital tracking systems, better agency coordination, and stronger compliance measures have expanded collections across oil and non-oil sectors, making Nigeria’s economy less dependent on oil revenues.
What’s coming next? The Nigeria Tax Act, 2025, takes effect in January 2026, bringing sweeping reforms that will eliminate taxes on essential items like food, shelter, and education for ordinary Nigerians while streamlining the overall tax system to boost business efficiency and government revenue.
Nigeria’s fiscal reforms are working, delivering record revenues while preparing to ease the tax burden on citizens through a fairer, simpler system. Success will depend on continued collaboration between the government, regulators, and the private sector.
