In a major fiscal breakthrough, Nigeria’s monthly revenue collection has surged by over 411%, rising from N711 billion in May 2023 to N3.64 trillion as of August 2025, according to the Chairman of the newly renamed Nigerian Revenue Service (NRS), Zacch Adedeji.
The sharp rise reflects the impact of comprehensive tax and economic reforms introduced under the administration of President Bola Ahmed Tinubu, Adedeji said on Tuesday during a “Meet-the-Press” session organized by the Presidential Communications Team in Abuja.
FIRS Now NRS: Tax Reforms Driving Record Growth
The Federal Inland Revenue Service (FIRS) has officially rebranded as the Nigerian Revenue Service (NRS) following the enactment of a new national tax law. Adedeji highlighted that the non-oil sector led the charge in the revenue boom. Non-oil tax collections rose from N151 billion to over N1 trillion over a 28-month period.
The latest revenue report also showed strong performance across multiple sectors including oil Revenue: Increased from N96 billion to N644 billion, Value Added Tax (VAT): Tripled from N218 billion to N723 billion, Customs Revenue: Jumped from N106 billion to N322 billion. Upstream Petroleum Remittances (NUPRC): Up from N125 billion to N745 billion and NNPC Ltd Contributions (Sept. 2025): N111 billion
President Tinubu’s Reforms Surpassing Expectations
President Tinubu previously hinted that the nation’s 2025 revenue projections were surpassed as of August, though exact figures were not disclosed. Adedeji, however, credited the massive revenue growth to Tinubu’s economic decisions:
“The total accruals to the Federation stood at N711 billion in May 2023. By August 2025, that figure had soared to N3.6 trillion. That’s a 411% increase—proof that our reforms are working,” he said.
Adedeji also responded to critics of Nigeria’s borrowing strategy, dismissing them as “container economists” who spread misinformation via social media.
“Borrowing is part of every viable economy. You don’t finance 50-year infrastructure with current income. Future users will pay their share through taxes,” he explained.
He also confirmed that the controversial Ways and Means advances from the Central Bank of Nigeria (CBN) had been terminated:
“The loans have now been collateralized and properly booked as federal debt. We are servicing both the principal and interest, bringing exchange rate stability.”
New Tax Law to Begin January 2026
While the Tax Act and Tax Administration Act will take effect from January 1, 2026, administrative reforms such as the FIRS rebranding have already begun.
Adedeji explained that deferring the tax laws to the start of the fiscal year ensures proper alignment with the country’s income assessment calendar.
Key Objectives of Ongoing Tax Reforms
The NRS Chairman reiterated that current fiscal reforms will harmonize taxes across federal and state levels, lower corporate tax rates, expand the national tax base, improve investor confidence and build a fair and sustainable revenue system
“We’re not just chasing revenue; we’re building a tax system that supports long-term economic growth and investor confidence,” Adedeji concluded.
