President Tinubu

Nigeria generated a record ₦20.6 trillion in revenues between January and August 2025, driven largely by non-oil income sources that now account for three out of every four naira earned by the government.

The presidency disclosed this in a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, noting that the figure reflects a 40.5 per cent increase from ₦14.6 trillion recorded in the same period last year.

According to the statement, the strong fiscal performance was the result of reforms aimed at tightening compliance, broadening the tax base, and digitising collections.

Tinubu Hails Fiscal Reforms

President Bola Tinubu, while addressing a delegation of the Buhari Organisation led by Tanko Al-Makura, said the surge proves that the administration’s reforms are taking root.

The president highlighted that, for the first time in years, the government has not borrowed from local banks to fund its operations a shift he attributed to stronger inflows. However, he admitted that revenues still fall short of what is needed to meet spending ambitions in education, health, and infrastructure.

Non-Oil Collections Lead the Way

In the first eight months of 2025, non-oil revenues totalled ₦15.7 trillion, while oil revenues lagged due to weaker global crude prices.

The Nigeria Customs Service (NCS) was a standout performer, collecting ₦3.68 trillion in the first half of the year, which was ₦390 billion above target and already 56 per cent of its full-year revenue goal.

Record Allocations to States and LGAs

The presidency noted that stronger revenues have translated into record allocations to Nigeria’s 36 states and 774 local governments. In July 2025, monthly disbursements from the Federation Account topped ₦2 trillion for the first time, providing subnational governments with greater fiscal space to invest in food security, infrastructure, and social programmes.

Oil No Longer Dominant

“For the first time in decades, oil is no longer the dominant driver of government revenue. The combination of reforms, compliance, and digitisation powers a more resilient economy. The task ahead is to ensure that these gains are felt in the lives of our citizens and in better schools, hospitals, roads, and jobs,” the statement read.

The Budget Office is expected to validate the figures by year-end.

A Turning Point for Nigeria’s Economy?

Nigeria, long dependent on crude oil, appears to be making gradual progress toward diversifying government revenue. The challenge, however, remains to convert rising revenues into real relief for households, many of whom are struggling with high inflation and weak purchasing power.