NIGERIA’S economy has marked a historic milestone with non-oil revenues soaring to ₦20.59 trillion between January and August 2025, representing a 40.5% jump from ₦14.6 trillion recorded in the same period last year.
The Presidency attributes this unprecedented surge to fiscal reforms, tighter compliance, and the digitisation of tax administration.
According to a statement by Bayo Onanuga, spokesperson to President Bola Tinubu, the growth underscores the administration’s commitment to reshaping Nigeria’s fiscal foundations and reducing reliance on oil.
“For the first time in decades, oil is no longer the dominant driver of government revenue,” President Tinubu noted during a meeting with a delegation of the Buhari Organisation led by Senator Tanko Al-Makura.
The data shows that three out of every four naira collected now comes from non-oil sources, with ₦15.69 trillion raised in eight months.
Customs collections, buoyed by automation and compliance enforcement, exceeded expectations, generating ₦3.68 trillion in the first half of the year—₦390 billion above target.
The stronger revenue base has translated into record Federation Account Allocation Committee (FAAC) disbursements.
In July 2025, monthly allocations to states and local governments surpassed ₦2 trillion for the first time, expanding fiscal space for investments in food security, infrastructure, and social services.
The Presidency also confirmed that, for the first time in years, the Federal Government has avoided borrowing from local banks to cover expenses, reflecting improved fiscal stability.
Still, Tinubu acknowledged that current revenues fall short of his administration’s ambitious spending goals for education, healthcare, and infrastructure.
While inflationary pressures and foreign exchange revaluations played a role, the Presidency stressed that the primary drivers of the revenue boost were structural reforms—digitised tax filings, automated customs processes, and broadened enforcement.
“The combination of reforms, compliance, and digitisation powers a more resilient economy,” Tinubu said.
“The task ahead is to ensure that these gains are felt in the lives of our citizens—in better schools, hospitals, roads, and jobs.”
The Presidency affirmed that collections remain ahead of pro-rata targets, with final validation expected from the Budget Office at year-end.
As revenues rise and the tax base broadens, the government faces the challenge of turning fiscal momentum into tangible improvements for ordinary Nigerians.