Nigeria’s VAT revenue hits N6.72 trillion in 2024, surges by 84.62% 

This was disclosed at the 2025 FIRS Management Retreat on Thursday, where the agency reviewed its revenue performance.

According to the data presented by Amina Ado, Coordinating Director, Large Taxpayers Group, VAT collections in 2024 demonstrated remarkable growth across both import and non-import categories.

Surge in tax revenue across categories 

The latest figures indicate that all tax categories recorded significant growth in 2024 compared to 2023, with non-oil taxes driving the majority of the increase.

The overall non-oil tax revenue increased by 97% compared to 2023, reflecting the federal government’s intensified efforts to broaden the country’s tax base and reduce reliance on oil revenues.

Oil revenue falls below target despite growth

Despite growth across all tax categories, oil-related tax revenue did not meet FIRS’ internal projections. The PPT/HT/CIT Upstream tax, which was expected to generate N7 trillion, fell short at N5.76 trillion, achieving only 82.3% of its target.

The shortfall was attributed to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.

However, improved debt collection efforts helped offset some of the revenue losses in this segment.

The FIRS plans to generate N25.2 trillion from taxes in 2025. This new target followed the N21.6 trillion revenue that the Service generated in 2024, significantly exceeding the year’s target of N19.4 trillion.

There have been debates recently over the new sharing formula for VAT revenue as proposed in the new tax reform bills currently before the National Assembly.

Members also agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time.