Nigeria’s Non-Oil Revenue Soars 40% to N20.6tn in 2025, Presidency Hails Fiscal Reforms
Nigeria’s Presidency has announced a significant boost in non-oil revenues, reporting a 40.5 percent rise to N20.6 trillion between January and August 2025. The figures, released on Wednesday in a statement by Presidential Adviser Bayo Onanuga, mark one of the strongest fiscal performances in Nigeria’s recent history. The surge was credited to sweeping reforms in tax compliance, customs automation, and the digitisation of revenue systems.
According to the statement, oil is no longer the dominant source of government income for the first time in decades. Of the total collections, three out of every four naira now come from non-oil sectors, with Customs alone raking in N3.68 trillion in the first half of 2025—exceeding its target by N390 billion. Officials described the increase as “systemic changes, not one-off windfalls,” underscoring the impact of structural fiscal reforms.
The Presidency noted that while inflation and exchange rate adjustments contributed to the uplift, the bulk of the growth was reform-driven. President Bola Tinubu, speaking at the State House during a meeting with the Buhari Organisation, highlighted that the government had stopped borrowing from local banks, easing credit pressures and improving financial stability. He described the gains as a foundation for investing in education, healthcare, and infrastructure.
The positive revenue trend has also had ripple effects across states and local governments. Monthly allocations from the Federation Account surpassed N2 trillion in July 2025 for the first time, giving sub-national governments more fiscal space to channel resources into infrastructure, agriculture, and social services. “Resources are being directed closer to the people,” the Presidency stated, aligning the progress with Tinubu’s inclusive growth agenda.
Despite the optimism, challenges remain as oil revenues continue to suffer from low crude prices and underwhelming production levels. The Presidency stressed that the priority now is ensuring the numbers translate into real benefits for citizens, food security, job creation, and improved public services. Final validation of the year-end targets will come from the Budget Office, but for now, officials say “reforms are working, and revenues are rising.”
Source: Punch