The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed that inflows into Nigeria’s Federation Account reached ₦23.06 trillion between January and October 2025, citing fiscal reforms, improved audits and better coordination among revenue-generating agencies.
The Chairman of the commission, Mohammed Shehu, made the disclosure on Monday in Abuja while delivering a keynote address at a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025.
According to Shehu, total accruals into the Federation Account for the 10-month period stood at ₦23,058,248,707,725.50, representing a steady improvement over previous years.
He noted that total gross accruals were ₦11.93 trillion in 2023 and ₦21.43 trillion in 2024, describing the latest figures as evidence of growing fiscal discipline and enhanced revenue mobilisation.
Shehu attributed the increase to fiscal reforms, stronger audits, digital tracking systems and improved coordination among revenue agencies, adding that the measures had expanded the pool of funds available for distribution to the Federal, State and Local Governments.
He said the trend reflected progress towards a more resilient and sustainable public finance system, with reduced reliance on oil revenues, which have historically exposed the country to revenue volatility.
“The Nigerian economy has suffered from boom-and-bust cycles driven by fluctuating oil prices, undermining fiscal stability and long-term planning,” he said.
The RMAFC chairman explained that the Nigeria Tax Act, 2025, scheduled to take effect on January 1, 2026, was designed to address structural weaknesses in the tax system by harmonising fragmented tax laws into a single statute.
According to him, the Act will eliminate duplication and obsolete provisions, reduce compliance burdens and improve the ease of doing business nationwide.
Shehu also linked the improved revenue performance to broader macroeconomic developments, noting that inflation had declined for four consecutive months, from 21.88 per cent in July to 16.05 per cent in October, while the naira strengthened from ₦1,534 to ₦1,428 per dollar within the same period.
He said RMAFC would intensify monitoring of revenue collections and disbursements through enhanced oversight, forensic audits and closer collaboration with subnational governments to boost non-oil revenue mobilisation.
Also speaking, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Prof. Taiwo Oyedele, said the new tax law was designed to correct long-standing inefficiencies in Nigeria’s tax system and promote fairness, transparency and economic growth.
Oyedele disclosed that under the reforms, low-income earners, including those on the national minimum wage, would be exempt from personal income tax from 2026, while middle-income earners would enjoy reduced PAYE obligations.
He added that essential items such as food, transport, health, education and rent would be zero-rated for VAT to reduce living costs.
Other stakeholders, including representatives of the Central Bank of Nigeria (CBN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), expressed support for the reforms, describing them as critical to improving revenue mobilisation and fiscal sustainability.
