The Federal Government of Nigeria recorded a remarkable revenue inflow of about N21.22 trillion from five key revenue-generating agencies during the first half of 2025, highlighting a strong fiscal performance in the first six months of the year. This surge underscores the government’s intensified efforts to expand its revenue base through aggressive tax collection, stricter enforcement measures, and broader operational reach.
Data obtained by ireport247news.com shows that the Federal Inland Revenue Service (FIRS) led the pack, contributing a record N13.76 trillion in tax receipts between January and June 2025.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) followed closely, generating N5.21 trillion from oil royalties and related levies.
Meanwhile, the Nigeria Customs Service (NCS) contributed N2.02 trillion through import duties and tariffs, while the Ministry of Mines and Steel Development earned N32.39 billion, and the Nigerian National Petroleum Company (NNPC) Limited recorded N197.8 billion in commercial operations.
Despite the robust half-year performance, the government has continued to seek loans and grants from international lenders, raising concerns among economists over Nigeria’s rising debt profile.
Figures from the Debt Management Office (DMO) indicate that Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, representing a 22.8% increase from the previous year.
External debt to the World Bank now stands at $18.23 billion, accounting for nearly 40% of Nigeria’s total external debt.
Economists argue that while borrowing can support infrastructure and social development, excessive reliance on foreign loans could intensify fiscal pressures.
Aliyu Ilias, CEO of CSA Advisory, noted that Nigeria’s rising debt, now approaching N180 trillion, threatens public service delivery and fiscal stability despite record revenue collections.
He argued that improved domestic revenue should reduce the need for heavy borrowing.
Adewale Abimbola, another economist, highlighted the importance of effective utilisation of loans, emphasizing that multilateral loans with concessional rates can be beneficial if deployed for projects that generate sustainable revenue and economic growth.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, lauded the revenue performance of key agencies, describing it as a positive indicator of economic recovery and effective agency reforms.
The strong revenue inflows also reflect improved tax compliance, enhanced customs operations, and higher oil returns. Collectively, the agencies achieved 42.23% of their N50.2 trillion combined revenue targets and 58% of the government’s total 2025 projected revenue of N36.35 trillion.
If the current momentum continues, analysts predict that the Federal Government could surpass its fiscal year targets, providing more resources for nationwide projects and services.
However, the administration’s aggressive borrowing strategy continues, with fresh approvals potentially adding N38.24 trillion to Nigeria’s debt stock by 2026.
Proposed loans include $21.54 billion, €2.19 billion, and ¥15 billion, alongside several World Bank-backed development projects in education, agriculture, digital infrastructure, and health security.
Economists caution that without disciplined expenditure management, rising debt could crowd out capital investments, fuel inflation, and worsen foreign exchange pressures, even amid record domestic revenue.
Nonetheless, ongoing reforms and strong agency performance are expected to bolster revenue mobilisation and improve fiscal sustainability.
The first half of 2025 highlights a balancing act between improved domestic revenue generation and continued reliance on external financing—a trend that will shape Nigeria’s economic trajectory for the remainder of the fiscal year.