The Federal Inland Revenue Service (FIRS) has announced a sharp revenue increase of 411%, climbing from N711 billion in May 2023 to N3.64 trillion as of September 2025.
Executive Chairman Zacch Adedeji said the growth was largely driven by non-oil collections, which rose to N1.06 trillion from N151 billion two years ago. Oil revenue also improved to N644 billion, while Value Added Tax (VAT) jumped to N723 billion, more than three times its 2023 figure.
At a press briefing in Abuja, Adedeji linked the performance to reforms that simplified tax administration, reduced the burden on small businesses, and streamlined incentives. He added that new fiscal policies, excise regulations, and e-invoicing will further strengthen compliance and broaden the tax base.
He explained that upcoming plans include harmonising state and local levies, introducing a presumptive tax system for hard-to-tax groups, and lowering corporate tax rates as part of wider fiscal and constitutional reforms.
On why the government continues to borrow despite hitting revenue targets, Adedeji said borrowing remains an essential tool for sustaining growth, noting that both countries and corporations depend on it to fund long-term investments.
