Nigeria’s Federation Account recorded total revenue accruals of N23.06 trillion between January and October 2025, signaling a marked improvement in the country’s fiscal performance and surpassing collections recorded in previous years. The figure not only exceeds the N21.43 trillion generated in the entire 2024 fiscal year but also more than doubles the N11.93 trillion recorded in 2023, underscoring the impact of ongoing fiscal and tax reforms.
The disclosure was made by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Shehu, on Monday in Abuja during a two-day National Stakeholders’ Discourse themed “Enhancing Fiscal Efficiency and Revenue Growth Under the Nigeria Tax Act, 2025.” The event brought together policymakers, regulators, private sector participants, and development partners to examine Nigeria’s evolving fiscal landscape and the implications of recent tax reforms.
According to Shehu, the strong revenue performance recorded in the first 10 months of 2025 reflects sustained improvements in revenue administration and coordination among government agencies. He noted that the N23.06 trillion accrual achieved between January and October alone already surpasses full-year figures from previous periods, highlighting the scale of the turnaround.
He explained that the N11.93 trillion recorded in 2023 represented the early gains of reforms introduced under the current administration, while the jump to N21.43 trillion in 2024 was driven by tighter audits, stronger enforcement, and improved compliance across revenue-generating institutions. The further acceleration in 2025, he said, suggests that these reforms are beginning to deliver more durable and broad-based results.
Shehu attributed the sustained growth in federation revenues to a combination of digital revenue tracking systems, improved fiscal discipline, and reforms aimed at expanding the revenue base across both oil and non-oil sectors. He added that enhanced monitoring and transparency have helped to reduce leakages, while better coordination among agencies has strengthened the efficiency of revenue collection.
The improved inflows, he noted, have translated into stronger statutory allocations to the federal, state, and local governments, helping to stabilize public finances and reduce volatility associated with heavy dependence on oil revenues. Shehu reaffirmed RMAFC’s commitment to safeguarding federation revenues, stressing that the commission would continue to monitor accruals closely while promoting accountability and transparency in revenue management.
A major focus of the stakeholders’ discourse was the Nigeria Tax Act, 2025, which Shehu confirmed would take effect in January 2026. He said the Act was the product of extensive consultations carried out by the Presidential Committee on Fiscal Policy and Tax Reform, culminating in four tax reform laws that were assented to in June. These laws are designed to streamline tax administration, reduce compliance costs, eliminate duplication, and strengthen revenue governance.
According to Shehu, the new Tax Act harmonises previously fragmented tax laws, improves the ease of doing business, and promotes a more predictable and transparent fiscal environment. He urged stakeholders to engage constructively with experts on the implementation framework and to help address public misconceptions surrounding the reforms.
Also speaking at the event, the Minister of Solid Minerals Development, Dr. Dele Alake, described RMAFC’s constitutional mandate as central to Nigeria’s peace, stability, and governance architecture. Represented by Mr. Peluola Olusegun, Alake said effective implementation of the Tax Act would require close collaboration among different levels of government, legislative bodies, institutions, and the private sector. He also highlighted the solid minerals sector as a critical opportunity for boosting revenues, supporting renewable energy development, and strengthening Nigeria’s fiscal structure through reforms, investment, and partnerships.
The Chairman of RMAFC’s Fiscal Efficiency and Budget Committee, Mr. Desmond Akawor, described the Tax Act as a major milestone in Nigeria’s fiscal reform journey. He said the reforms are aimed at modernising tax administration, strengthening compliance, closing revenue leakages, and expanding the revenue base across all tiers of government. Akawor emphasized that achieving these goals would require active participation and cooperation from all stakeholders.
Meanwhile, the Chairman of the Tax Reforms Committee, Taiwo Oyedele, said the reforms are designed to create a fairer, simpler, and more efficient tax system that supports economic growth while boosting government revenue. He revealed that from January 2026, certain basic taxes—particularly those affecting food, shelter, and education—would be eliminated to ease the burden on citizens and improve equity within the tax system.
In a related development, RMAFC recently disclosed that it recovered N319 billion in unremitted funds from Ministries, Departments, and Agencies (MDAs) over the past two years. Shehu said the recoveries were achieved through forensic audits and, in some cases, collaboration with law enforcement agencies such as the Economic and Financial Crimes Commission, highlighting ongoing efforts to strengthen fiscal accountability and plug revenue leakages across government.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
