The chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji

Zacch Adedeji credits record collections to Tinubu-era reforms

Nigeria’s Federal Inland Revenue Service (FIRS) chairman, Zacch Adedeji, has attributed the country’s unprecedented revenue growth to bold fiscal reforms introduced by President Bola Tinubu’s administration.

Speaking to State House correspondents in Abuja, Mr Adedeji revealed that federal revenue hit ₦3.64 trillion in September 2025, a 411% increase from ₦711 billion in May 2023.

Non-oil revenue surges

According to Mr Adedeji, non-oil revenue rose from ₦151 billion to ₦1.06 trillion in two years — signalling a major shift in Nigeria’s earnings profile. Oil revenue also increased to ₦644 billion, while VAT collections tripled to ₦723 billion, reflecting stronger compliance and improved efficiency.

He credited the growth to:

• Streamlined taxes and reduced burdens on SMEs
• Compliance tools such as e-invoicing and new excise regulations
• Plans for a presumptive tax regime to capture hard-to-tax sectors
• Ongoing work to harmonise state levies and expand the tax base

“Our goal is to build a fair, efficient and sustainable tax system that supports growth and boosts investor confidence,” he said.

Fiscal discipline and borrowing

Mr Adedeji noted that unbacked Ways and Means advances from the Central Bank have been halted, with the loans reclassified and treated as federal debt. “The debt is now collateralised. Both principal and interest are being repaid, ensuring exchange rate stability and system confidence,” he explained.

Dismissing concerns about borrowing, he argued that when properly legislated and directed at infrastructure, borrowing funds projects that generate future tax revenues.

“Borrowing funds infrastructure that generates future tax revenues from beneficiaries. This is a sustainable approach for long-term development,” he added.

More reforms coming in 2026