The Federal Inland Revenue Service (FIRS) has announced a record-breaking ₦47.39 trillion total tax collection between October 2023 and September 2025, exceeding its target by 15 percent and achieving a 115 percent performance rate – the agency’s best result to date.
The milestone, achieved under the leadership of Executive Chairman Zacch Adedeji, represents the strongest fiscal performance since his appointment by President Bola Tinubu in September 2023, marking a new high point in Nigeria’s revenue administration.
Non-oil sector drives historic growth
According to official data, the surge was largely powered by the non-oil sector, which contributed 76 percent of total revenue – underscoring the federal government’s economic diversification and tax reform agenda.
Non-import Value Added Tax (VAT) outperformed its target at 137 percent, while import VAT achieved 131 percent, buoyed by enhanced digital compliance systems and automated tax monitoring tools.
Between January and September 2025, FIRS generated ₦22.59 trillion, achieving 120 percent of its target for the period and reaching 90 percent of its annual goal of ₦25.2 trillion.
Of that total, oil-related taxes accounted for ₦5.29 trillion (98 percent of target), while non-oil taxes soared to ₦17.3 trillion (128 percent of projections).
The top-performing revenue streams were Company Income Tax (32.6%), Non-import VAT (23.2%), Petroleum Profit/Hydrocarbon Tax (17.4%), followed by education tax, import VAT, and gas income.
Digital transformation and reform impact
The agency attributed the record performance to its ongoing digital transformation and the successful deployment of platforms such as the National Single Window and National E-Invoicing System, which have improved transparency, efficiency, and real-time tax tracking.
FIRS also highlighted the influence of the 2025 tax reform laws, which streamlined administrative processes, curbed loopholes, and aligned Nigeria’s tax regime with global best practices.
Adedeji: borrowing remains a strategic fiscal tool
Despite the robust revenue outcome, Adedeji said the federal government would continue to employ strategic borrowing to sustain growth and stability.
Speaking at the “Meet-the-Press” briefing at the Presidential Villa, Abuja, he explained that borrowing should not be seen as a weakness but as a structured component of Nigeria’s fiscal framework designed to complement revenue expansion.
“Borrowing is not a weakness but an approved component of our fiscal strategy — a tool to sustain development priorities while consolidating on revenue growth,” Adedeji said.
He reaffirmed the service’s commitment to building a modern, data-driven tax system that enhances compliance, plugs revenue leakages, and strengthens Nigeria’s long-term fiscal resilience.
“Our focus remains on efficiency, transparency, and technology-driven growth to ensure Nigeria’s tax system meets the realities of a modern economy,” he added.
