The Federal Inland Revenue Service (FIRS) has grown Nigeria’s total tax collection to an unprecedented N47.39 trillion between October 2023 and September 2025.
The achievement, which surpasses the agency’s two-year revenue target by 15 per cent, underscores the Federal Government’s renewed emphasis on efficient tax administration, digital integration, and non-oil revenue diversification.
According to fresh data from the agency, the record performance came under the leadership of Dr. Zacch Adedeji, who assumed office as FIRS Chairman following his appointment by President Bola Tinubu in September 2023.
The latest figures show that the FIRS’s strategic reforms have significantly boosted both oil and non-oil tax collections, reflecting the results of structural modernization and improved compliance enforcement.
FIRS grows tax collection to N47.39tn, surpassing target by 15%
The new report reveals that the FIRS exceeded its target by an impressive margin, collecting N47.39tn compared to N21.97tn recorded between October 2021 and September 2023.
This represents an outstanding 115 per cent performance against target, marking the most robust growth in Nigeria’s tax history.
Non-oil revenue remained the dominant driver, accounting for 76 per cent of total collections.
The agency attributed this success to expanding the tax net, enforcing stricter compliance among large taxpayers, and automating filing systems through digital innovations such as the TaxPro Max platform, the National Single Window, and the E-Invoicing System.
A breakdown of the revenue performance showed remarkable progress across key segments. Between January and September 2025 alone, FIRS collected N22.59tn, representing 120 per cent of the period’s target and 90 per cent of the annual benchmark of N25.2tn.
Of this amount, oil tax receipts stood at N5.29tn, achieving 98 per cent of the target despite production and price challenges in the upstream sector.
Meanwhile, non-oil taxes rose sharply to N17.3tn, exceeding projections by 128 per cent and reflecting stronger corporate compliance and consumer activity across multiple industries.
Non-oil sector leads FIRS growth momentum
The sustained surge in non-oil collections demonstrates the positive impact of the FIRS’s broad-based tax reforms.
Company Income Tax contributed 32.6 per cent of total receipts, followed by non-import VAT at 23.2 per cent, and Petroleum Profit Tax/Hydrocarbon Tax at 17.4 per cent.
Other contributors included Company Income Tax from upstream operations (7.1 per cent), import VAT (7.03 per cent), education tax (6.1 per cent), and gas income (2.3 per cent).
Minor but notable revenue sources included stamp duties, capital gains tax, and electronic money transfer levies — all of which benefited from improved digital tracking and inter-agency data integration.
According to the FIRS, the record growth stems from its modernised tax architecture, improved taxpayer education, and robust partnerships with state revenue boards and financial institutions.
The reforms have helped close leakages, boost transparency, and strengthen Nigeria’s fiscal independence.
FIRS grows tax collection to N47.39tn through innovation and reform
In its official statement, the FIRS noted that the performance reflects “significant revenue improvements in mobilisation” within two years of sustained reform.
The agency emphasized that the tax administration system has become more transparent and technology-driven, enabling real-time data collection and risk-based auditing.
Chairman Adedeji credited the results to the collective efforts of FIRS staff, strategic leadership alignment, and policy direction under the current administration.
“Our focus has been on innovation, collaboration, and trust,” he said.
“We are modernising tax processes, deploying data intelligence tools, and simplifying compliance so that taxpayers see value in remitting dues that drive national development.”
He also highlighted the role of the 2025 tax reform laws, which simplified filing procedures, harmonised levies, and aligned Nigeria’s fiscal regime with global best practices.
These legal adjustments, he said, have made it easier for businesses to comply voluntarily.
Borrowing remains part of fiscal strategy, says FIRS boss
Despite the record revenue performance, Adedeji clarified that government borrowing remains an integral part of Nigeria’s broader fiscal strategy.
Addressing journalists during the “Meet-the-Press” series at the Presidential Villa in Abuja, he explained that public borrowing is not an indicator of weakness but a component of responsible fiscal management.
“Borrowing is not a problem. Every national budget comprises expenditure, revenue, and loans,” he stated.
“If my revenue projection is N80,000 and my total expenditure is N100,000, borrowing N20,000 is part of my fiscal plan.
Even if I surpass my revenue target, borrowing within approved limits ensures balance and continuity.”
This perspective aligns with the Federal Government’s medium-term economic plan, which seeks to maintain debt sustainability while expanding domestic revenue generation.
Outlook: Sustaining tax growth beyond 2025
Analysts believe the FIRS’s momentum signals a shift toward stronger non-oil fiscal independence and economic resilience.
If the current trend continues, the agency is projected to surpass its N25.2tn internal revenue goal by December 2025, potentially providing the government with greater fiscal flexibility to fund infrastructure, social programs, and debt servicing without excessive borrowing.
Experts, however, caution that sustaining this momentum will require continued investment in technology, stronger inter-agency coordination, and consistent enforcement across all tax categories.
The FIRS’s success story offers renewed optimism for Nigeria’s economic diversification agenda.
As the FIRS grows tax collection to N47.39tn, it reflects not only administrative efficiency but also a growing culture of fiscal responsibility — one that could redefine Nigeria’s public finance landscape for years to come.
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