Nigeria’s federation account swells to N23trn in 10 months

Top 10 countries Nigeria made the most revenue from in 2024

Inflows into Nigeria’s federation account have surged to N23.06 trillion in the first 10 months of 2025, surpassing the gross total accruals of last year and that of 2023, according to the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC).

Mohammed Shehu, chairman of the commission made this known while delivering his remarks on Monday in Abuja at a two-day National Stakeholders’ Discourse on “Enhancing Fiscal Efficiency and Revenue Growth Under the Nigeria Tax Act, 2025.”

Shehu said the 2025 revenue performance for the period between January to October beats the total N11.93 trillion recorded in 2023 and N21.43 trillion in 2024, highlighting the positive impact of the government’s fiscal and tax reforms aimed at boosting revenues.

Read also: FG’s ₦30trn revenue shortfall raises fresh doubts over 2026 budget

RMFAC chief explained that the growth run was driven by fiscal reforms, tracking and coordination among revenue agencies, stronger audits and digital tracking, adding that the measures had expanded the revenue pool available for distribution to the Federal, State, and Local Governments.

Nigeria is experiencing a major shift in its revenue trajectory after the government phased out fuel subsidies and removed artificial pegs from its exchange rate, two policies that are now restoring macroeconomic stability and fiscal control in Africa’s biggest oil producer.

The government has equally taken a bold step in harmonising its tax laws and overhauling its fiscal policies in what’s expected to improve tax as a percentage of GDP from a paltry 10 percent to 18 percent in the next three years.

Already signs of revenue growth are showing as BusinessDay had earlier reported that Nigeria collected more revenue in taxes in the seven months to July than it did in 2022 and 2021 combined, despite the oil price dropping below budget projections.

Tax revenue in Africa’s most populous nation surged to N17.4 trillion between January and July 2025, accounting for 69 percent of the full-year target of N25.2 trillion.

Read also: Nigeria’s tax reforms set lowest VAT rate among African peers

Shehu said the trend reflected progress towards a more resilient and sustainable public finance system with reduced dependence on oil earnings, adding that volatile crude prices had historically exposed the country to boom-and-bust revenue cycles that undermined fiscal stability and long-term planning.

“The Nigerian economy had suffered from boom-bust cycles driven by volatile oil prices, creating unpredictable revenue streams that undermine long-term planning and fiscal stability,” he said.

The RMAFC chairman said the Nigeria Tax Act, 2025, which will take effect on January 1, 2026, was designed to address these structural weaknesses by harmonising previously fragmented tax laws into a single statute.

He said the Act would eliminate duplication and obsolete provisions, reduce compliance burdens for taxpayers, and enhance the ease of doing business across the country.

Read also: New tax regime frowns at old crude method of collection

“The Nigeria Tax Act, 2025, has not only harmonised the hitherto Nigeria’s fragmented tax laws into a single statute, but it has also reduced or eliminated duplication and obsolete provisions while enhancing ease of doing business,” Shehu stated.

He added that the reforms would create a more coherent and predictable fiscal environment while eliminating regional differences in tax administration.

Wasiu Alli is a business and economics journalist with more than two years experience covering macro trends, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. An alumnus of Lagos State University and trained at Lagos Business School, he heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.

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