The Federal Inland Revenue Service (FIRS) has posted a remarkable revenue performance for the first half of 2025, collecting N14.27 trillion—a 43% surge compared to the same period in 2024. This impressive performance, which exceeds the baseline growth target of 16.4%, sets the agency firmly on course to achieve or surpass its N25.2 trillion full-year revenue target.
According to a performance evaluation report obtained from the Presidency, the revenue growth was driven by improved oil and non-oil tax collections, stringent compliance measures, and the expansion of Nigeria’s tax net.
The breakdown of the FIRS collections revealed that non-oil taxes remained the major contributor, generating N10.64 trillion, up from N7.37 trillion in H1 2024, representing a 44.2% increase. Analysts attribute this to enhanced enforcement strategies, automation of tax collection, and a broader tax base that now includes more digital businesses and informal sector players.
Oil tax revenue also recorded significant improvement, rising by 39.4% to N3.63 trillion in the first half of 2025, compared to N2.60 trillion in the corresponding period last year. The increase was linked to improved compliance by oil companies, strengthened collaboration with regulatory agencies, and the adoption of advanced tracking systems for extractive industry earnings.
“The favourable increase highlights the accelerated pace of revenue collection against 2024 and underscores continued momentum toward achieving the 2025 revenue target,” the report noted.
The FIRS monthly performance shows a consistent upward trend:
January 2025: Revenue jumped from N1.30tn in 2024 to N2.32tn.
February: Rose modestly from N1.57tn to N1.67tn.
March: Almost doubled, climbing from N1.08tn to N2.12tn.
April: Surged from N1.26tn to N2.53tn.
May: Increased from N1.71tn to N1.97tn.
June: Peaked at N3.66tn, up from N3.06tn in 2024.
These figures reflect a combination of policy-driven tax reforms and seasonal factors, including year-end corporate filings and improved automation in tax processing.
The 2025 Appropriation Act set the FIRS revenue target at N25.2 trillion, and with N14.27 trillion already collected by June, the service has achieved over 78% of its annual target within just six months.
If this momentum continues, Nigeria could exceed its full-year revenue target, providing fiscal flexibility for the Federal Government to:
Fund key infrastructure and social projects
Reduce domestic and external borrowing
Clear outstanding arrears and contractor debts
However, experts warn that revenue utilisation will still depend on macroeconomic conditions, oil market stability, and exchange rate volatility.
Tax analysts hailed the FIRS achievement as a sign of Nigeria’s improving fiscal discipline. Dr. Adaobi Eze, a financial analyst at ProTax Consulting, said:
“This is a clear indication that Nigeria’s tax reforms are paying off. The emphasis on non-oil revenue diversification is crucial as global oil demand becomes more unpredictable.”
Similarly, Mr. Kayode Salami, an economist at Cowry Asset Management, noted that sustaining the momentum will require continuous tax reforms and transparent use of funds to build public trust.
The FIRS is expected to intensify efforts in the second half of 2025, focusing on digital tax administration, informal sector integration, and blocking leakages in revenue collection.