Segun Atanda/
Nigeria’s fiscal landscape is undergoing a historic transformation as non-oil revenues surge to unprecedented levels, powering the strongest fiscal performance in recent memory.
According to the Presidency, between January and August 2025, the country mobilised ₦20.59 trillion in total revenue, representing a 40.5% rise from the ₦14.6 trillion recorded in the same period last year. Significantly, ₦15.69 trillion — three out of every four naira — came from non-oil sources, signalling a decisive shift away from decades of oil dependence.
President Bola Tinubu, while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura on Tuesday, highlighted the momentum of reforms driving this growth. He stressed that the Federal Government has not borrowed from local banks this year, underscoring the strength of the fiscal position.
Record Revenues, Stronger States
The boom in non-oil collections has translated into record disbursements to states and local governments. In July 2025, monthly allocations through the Federation Accounts Allocation Committee (FAAC) surpassed ₦2 trillion for the first time in history, providing subnational governments with greater fiscal space to invest in food security, infrastructure, and social services.
Customs revenues have also exceeded expectations, collecting ₦3.68 trillion in the first half of the year — ₦390 billion above target — already achieving 56% of its annual goal. Officials credit these results to automation, digitised tax filings, and stricter compliance enforcement rather than one-off windfalls.
Beyond Numbers: Reform-Driven Growth
The government clarified that while inflation and foreign exchange revaluation contributed to higher nominal revenues, the primary driver is reform. These include digitised tax administration, Customs automation, broadened compliance, and tighter enforcement mechanisms.
Despite the successes, President Tinubu acknowledged that rising revenues alone cannot yet match his ambitions for spending on education, healthcare, and infrastructure. He assured that additional reforms are underway to close the gap and ensure fiscal gains translate to tangible relief for citizens.
Key Takeaways
- ₦20.59 trillion mobilised in 8 months — the highest in Nigeria’s history
- Non-oil revenues contributed ₦15.69 trillion (75% of total collections)
- FAAC disbursements hit ₦2 trillion in July, boosting state finances
- Customs revenues exceeded targets, collecting ₦390 billion more than expected
- Government on course to meet 2025 annual non-oil revenue target
With revenues broadening and dependence on oil waning, the Tinubu administration insists Nigeria is entering a new era of fiscal resilience — one where reform-driven growth strengthens the foundation for inclusive development.
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