The Federal Government generated ₦14.3 trillion in tax revenue within the first half of 2025, according to official data released on Wednesday.
This represents 56.7% of its full-year revenue target of ₦25.2 trillion and a 43% year-on-year increase from the corresponding period in 2024.
Oil tax revenue rose by 39% to ₦3.6 trillion while non-oil tax revenue surged by 44% to ₦10.6 trillion, driven by improved compliance and enforcement measures.
The government attributed the performance to the “effectiveness of revenue-diversification initiatives, strengthened tax-compliance measures and enhanced enforcement strategies.”
The results underscore the federal administration’s fiscal consolidation drive amid ongoing macroeconomic challenges.
Nigeria, Africa’s largest crude oil producer, has seen average oil prices hover around $70 per barrel so far this year—$5 short of the $75 per barrel benchmark used in the 2025 national budget. Despite the shortfall, strong non-oil revenue performance offset the impact of lower oil receipts.
The Federal Inland Revenue Service (FIRS) and relevant revenue-generating agencies have intensified compliance monitoring and widened the tax net with technology-based solutions and data analytics playing key roles in revenue tracking and enforcement.
The revenue growth also precedes the implementation of recently passed tax laws aimed at raising Nigeria’s tax-to-GDP ratio from 13% to 18% by 2030.
The current performance positions the country favorably in its medium-term revenue framework, analysts say.
“The mid-year numbers reflect commendable progress in the government’s fiscal strategy and its ability to sustain public revenue despite global price volatility,” a senior tax consultant told Naijaonpoint. “If the momentum is maintained, Nigeria could meet or surpass its full-year tax revenue target.”
The Ministry of Finance reaffirmed its commitment to expanding the non-oil revenue base, enhancing voluntary tax compliance, and deploying technology to streamline collection across various sectors of the economy.
With ₦14.3 trillion already generated, the federal government is projected to close the year above target if current revenue trends continue.
The administration has prioritized public finance reforms as a key pillar of its economic agenda to reduce fiscal deficits and boost infrastructure investment.