Eshiorameh Sebastian in Abuja
The Federal Government has revealed that Nigeria achieved an unprecedented fiscal milestone, collecting a record N20.59 trillion in non oil revenues in the first eight months of 2025.
This figure represents a staggering 40.5 per cent increase from the N14.6 trillion recorded over the same period in 2024 and signals a profound transformation in the nation’s economic foundations.
The figures, which cover January to August 2025, were welcomed by President Bola Tinubu’s administration as direct validation of its ongoing reforms designed to improve the government’s fiscal position, strengthen compliance, and digitise tax administration.
The spokesperson for the President, Bayo Onanuga in a statement on Wednesday, declared that Nigeria’s fiscal foundations are “being reshaped,” marking the first time in decades that oil is no longer the dominant driver of government revenue.
President Tinubu himself made reference to this positive growth trajectory during a meeting with a delegation of the Buhari Organisation led by Senator Tanko Al-Makura.
The President sought to clarify earlier media reports, stating that the significant growth in non oil revenues is benefitting the entire Federation, including federal, state, and local governments.
The record collection of N15.69 trillion from non oil sources means that these revenues now account for three out of every four naira collected, underscoring a fundamental shift away from the nation’s traditional dependence on petroleum.
The government was keen to emphasise that while inflation and foreign exchange revaluation played a part, the uplift is “primarily reform-driven,” attributing the success to digitised tax filings, Customs automation, tighter enforcement, and broadened compliance.
Illustrating this point, the Nigeria Customs Service was highlighted as a standout performer. It collected ₦3.68 trillion in the first half of the year, a figure that is ₦390 billion above its target and already represents 56 per cent of its full-year goal.
The administration stressed that this reflects systemic changes and is not a one-off windfall.
Perhaps one of the most significant immediate impacts of this revenue surge is being felt at the subnational level. As part of what the administration terms its “inclusive growth policy,” resources are being directed closer to the people.
This has translated into record disbursements from the Federation Account Allocation Committee (FAAC). In a historic first, monthly allocations to state and local governments crossed the ₦2 trillion mark in July 2025. This provides governors and local council chairs with vastly greater fiscal space to fund critical areas like food security, infrastructure, and social services for their citizens.
In the statement that underscores the improved fiscal health, the Presidency also revealed that “the Federal Government is no longer borrowing from local banks,” a move that buttresses the strong performance since the start of the year.
However, the government tempered the celebratory tone with a note of realism. The announcement acknowledged that these increased revenues “do not yet match the President’s ambitions for expenditures on education, health, and infrastructure,” and confirmed that “all efforts are being made to address these gaps.” This admission recognises the pressing demands of a growing population and the need for tangible improvements in public services.
The positive news was also contrasted with the ongoing challenges in the oil sector. President Tinubu commented on the continued underperformance of dollar denominated oil receipts, where targets are not being met due to a persistent slump in the crude oil market. This further highlights the critical importance of the non-oil sector’s robust performance in stabilising the nation’s finances.
Commenting on the figures, Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated: “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. The task ahead is to ensure that these gains are felt in the lives of our citizens and in better schools, hospitals, roads, and jobs.”
The government affirmed that collections are ahead of pro-rata expectations but noted that final validation will be published by the Budget Office at the end of the year.
The next and most crucial priority remains translating these impressive numbers into real relief for Nigerians by putting food on tables, creating jobs for the youth, and building tangible infrastructure.
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