Nigeria has recorded its strongest fiscal performance in recent history, with revenues totaling N20.59 trillion between January and August 2025. This represents a 40.5 percent increase compared with the same period in 2024, when revenues stood at N14.6 trillion. Non‑oil sources accounted for N15.69 trillion—about three‑quarters of the total revenue.
According to Special Adviser to the President on Information and Strategy Bayo Onanuga, President Bola Tinubu attributed the improved fiscal performance to reforms aimed at strengthening compliance, digitising tax administration, and reducing government borrowing. The President noted that the federal government has not borrowed from local banks since the start of the year. The increased revenues have resulted in record disbursements to subnational governments; in July 2025, monthly allocations from the Federation Account Allocation Committee to states and local governments exceeded N2 trillion for the first time.
While revenues remain insufficient to fully meet government ambitions in key sectors such as education, health and infrastructure, efforts are ongoing to bridge the gaps. The Nigeria Customs Service also reported significant revenue collection, with N3.68 trillion collected in the first half of 2025—exceeding its target by N390 billion and achieving 56 percent of its annual goal. This growth is attributed to a combination of reforms, compliance and digitisation, with some contribution from inflation and exchange‑rate revaluation.
The development marks a significant shift away from Nigeria’s historical dependence on oil revenue. The country’s fiscal foundations are being reshaped, with non‑oil sources now driving government revenue. The final validation of the revenue figures will be published by the Budget Office at the end of the year, providing a comprehensive overview of Nigeria’s fiscal performance in 2025.
The improved fiscal performance is expected to have a positive impact on the economy, as increased revenues enable the government to invest in key sectors and reduce reliance on borrowing. As Nigeria continues to implement reforms and strengthen its fiscal foundations, the country is poised to achieve more sustainable and resilient economic growth.
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