Nigeria recorded a significant boost in its non-oil revenue, hitting ₦20.59 trillion between January and August 2025, representing a 40.5 percent rise compared to ₦14.6 trillion in the same period of 2024, according to the Presidency.
Presidential spokesman Bayo Onanuga disclosed in a statement yesterday that the sharp growth reflects the impact of reforms aimed at strengthening compliance, digitising tax administration, and diversifying the country’s fiscal base away from crude oil.
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President Bola Tinubu also referenced the positive trajectory during a recent meeting with the Buhari Organisation, stressing that the revenue growth benefits all tiers of government — federal, state, and local.
“Nigeria’s fiscal foundations are being reshaped. For the first time in decades, oil is no longer the dominant driver of government revenue. The combination of reforms, compliance, and digitisation powers a more resilient economy,” Onanuga stated, as reported by BusinessDay.
The Presidency noted that the strong performance puts the government on track to meet its annual non-oil revenue targets.
Notably, non-oil collections alone accounted for ₦15.69 trillion, or three-quarters of total revenues, while the Nigeria Customs Service outperformed expectations, collecting ₦3.68 trillion in the first half of the year — ₦390 billion above target.
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The administration highlighted that the surge in revenues translated into record disbursements from the Federation Accounts Allocation Committee (FAAC).
In July 2025, monthly allocations to states and local governments surpassed ₦2 trillion for the first time in history, expanding fiscal space for investments in food security, infrastructure, and social services.
Tinubu further revealed that the Federal Government has stopped borrowing from local banks since the beginning of the year, attributing it to improved fiscal discipline and stronger revenue mobilisation.
Despite the gains, the Presidency admitted that revenues still fall short of the administration’s ambitious spending plans, particularly in education, healthcare, and infrastructure.
Efforts, it said, are ongoing to close these gaps and ensure that the benefits of reform reach citizens through better schools, hospitals, roads, and job creation.
Image Credit: Champion Newspapers
