Nigeria’s tax authority has achieved its strongest revenue performance on record, doubling collections over a two-year period following extensive reforms and digital transformation across the Federal Inland Revenue Service (FIRS).
Under the leadership of Chairman Zacch Adedeji, the agency has delivered a cumulative ₦47.39 trillion in tax receipts between October 2023 and September 2025, far surpassing its benchmark and solidifying its position as a central driver of government funding.
The outcome reflects the combined impact of policy modernization, data-driven enforcement, and a sustained expansion of the non-oil tax base.
Internal performance indicators show that non-oil revenues now account for roughly three-quarters of total collections, illustrating Nigeria’s steady shift away from dependence on crude-related earnings.
Strong growth was recorded across corporate income tax, value-added tax, and petroleum profit tax, supported by improved compliance and digital oversight systems introduced during the period.
The milestone comes less than two years after President Bola Tinubu appointed Adedeji to spearhead a comprehensive overhaul of Nigeria’s revenue framework. Since assuming office, the FIRS management has rolled out automated filing portals, electronic invoicing, and a unified taxpayer identification process aimed at reducing leakages and aligning operations with global best practices.
Officials close to the agency’s finance department note that the reforms have shortened collection timelines, improved taxpayer visibility, and helped expand the database of active contributors nationwide. These structural changes, combined with stronger collaboration with customs and state revenue bodies, have reinforced transparency across the country’s fiscal ecosystem.
Analysts describe the performance as a defining moment for the Tinubu administration’s domestic-revenue strategy, which targets broader fiscal independence and reduced exposure to external borrowing.
Economists believe the stronger inflows could provide government with greater latitude to fund infrastructure and social programmes while supporting the naira through improved fiscal buffers.
However, despite the record haul, FIRS Chairman Adedeji has maintained that the federal government will continue to access approved credit lines to balance its spending framework.
He explained recently that borrowing remains part of Nigeria’s fiscal mix and serves as a complementary tool for development financing when revenue and expenditure cycles diverge.
Market observers say the next challenge will be sustaining the momentum into 2026 as oil-sector volatility, inflation, and currency adjustments continue to test fiscal discipline.
Still, the service’s latest results underscore the success of its digital-first strategy and affirm growing investor confidence in Nigeria’s fiscal administration.
With annual collections now tracking ahead of projections, the FIRS is expected to close 2025 above its internal target, further consolidating the gains of reform and positioning the agency as one of the most efficient tax administrations on the continent.