Nigeria’s non-oil revenues power strongest fiscal performance in recent history

Onanuga

By JAMIU JAMODU

The Presidency welcomes the latest revenue figures for January–August 2025, showing that Nigeria is achieving unprecedented growth in non-oil collections, a direct result of reforms to improve the government’s fiscal position, strengthen compliance, and digitise tax administration.

President Bola Tinubu made a pointed reference to this positive growth trajectory in non-oil revenue mobilisation yesterday while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura, which a section of the media has reported out of context.

The President highlighted the significant growth in non-oil revenues accruing to the Federation, federal, state, and local governments. From January to August 2025, total collections reached N20.59 trillion, a 40.5% increase from N14.6 trillion recorded in 2024. This strong performance aligns with projections, placing the government firmly on course to achieve its annual non-oil revenue target.

The President also said that the Federal Government is no longer borrowing from local banks to buttress the strong fiscal performance since the start of the year.

The President commented on tax revenues, which do not include dollar oil receipts, where targets are not being met because of the slump in the crude oil market.

As part of this administration’s inclusive growth policy, resources are being directed closer to the people. Therefore, increased revenues have translated into record FAAC disbursements. For the first time in history, monthly allocations to states and local governments crossed ₦2 trillion in July 2025, providing subnational governments with greater fiscal space to fund food security, infrastructure, and social services.