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Nigeria’s revenue collection has soared by 411 percent over the past 16 months, rising from ₦711 billion in May 2023 to ₦3.64 trillion by September 2025, even as government borrowing remains a core element of its fiscal strategy. Special Adviser to the President on Revenue and Chairman of the Nigeria Revenue Service, Zacch Adedeji, disclosed the figures during a press briefing at the State House in Abuja, stressing that borrowing is being conducted strictly within the limits approved by the National Assembly for the 2025 budget.
Adedeji defended the borrowing plan as a deliberate tool to cushion future cost increases, maintain economic continuity and fund infrastructure that will eventually repay itself through taxes. He explained that borrowing forms part of the global economic ecosystem, noting that interest payments generate income for banks and, in turn, tax revenues for state governments.
The sharp revenue increase was driven largely by non-oil taxes, which grew from ₦151 billion to over ₦1 trillion. Oil receipts also expanded markedly, climbing from ₦96 billion to ₦644 billion. Value Added Tax collections more than tripled to ₦723 billion, while customs revenue surged to ₦322 billion. The Nigerian Upstream Petroleum Regulatory Commission reported remittances of ₦745 billion, up from ₦125 billion, and the Nigerian National Petroleum Company contributed ₦111 billion in September 2025.
Adedeji attributed the gains to reforms introduced under President Bola Tinubu, including streamlined tax systems, reduced burdens on small and medium-sized enterprises, harmonised levies, and new technology such as e-invoicing and data-driven audits to curb leakages and widen the tax base. He stressed that the government aims to fund development primarily from internally generated revenue, borrowing only for investments capable of repaying their own costs.
He added that the administration is actively servicing inherited debts, including the Central Bank’s overdraft facilities, to strengthen fiscal stability and reassure investors. Reforms on the horizon include harmonising state-level levies to curb multiple taxation, introducing a presumptive tax system for the informal sector, and gradually lowering corporate tax rates. Constitutional amendments are also being pursued to clarify revenue sharing between federal and state governments, reinforcing the framework for fiscal federalism.
