The Nigerian government has announced a significant increase in non-oil revenue, with collections reaching ₦20.59 trillion from January to August 2025. This represents a 40.5% increase from the ₦14.6 trillion recorded in 2024. According to a statement by the Presidency, the growth is a direct result of reforms aimed at improving the government’s fiscal position, strengthening compliance, and digitizing tax administration.

President Bola Tinubu highlighted the importance of this growth trajectory, stating that it aligns with projections and puts the government on track to achieve its annual non-oil revenue target. The President also noted that the Federal Government is no longer borrowing from local banks to support its fiscal performance, a testament to the effectiveness of the reforms.

The revenue increase has also led to record disbursements to states and local governments. In July 2025, monthly allocations crossed ₦2 trillion for the first time, providing sub-national governments with greater fiscal space to fund essential services such as food security, infrastructure, and social services.

While the revenue growth is a positive development, the President acknowledged that it still falls short of the government’s ambitions for expenditures on education, health, and infrastructure. To address these gaps, the government is working to further improve revenue collection and allocation.

The shift towards non-oil revenue is a significant development, with non-oil revenues now accounting for three out of every four naira collected. This fundamental shift away from oil dependence is driven by reforms, including digitized filings, Customs automation, and tighter enforcement.

The Customs service has also performed well, collecting ₦3.68 trillion in the first half of the year, exceeding its target by ₦390 billion. This performance reflects systemic changes rather than one-off windfalls.

The government has affirmed that revenue collections are ahead of expectations, with final validation to be published by the Budget Office at the end of the year. As the government continues to work towards translating these revenue gains into real relief for citizens, the focus remains on creating jobs, investing in roads, schools, and hospitals, and putting food on the table for Nigerians.