Nigeria’s non-oil revenues surge 40.5% to ₦20.59trn

By Seun Ibiyemi

The Federal Government on Wednesday announced that it had collected a record ₦20.59 trillion in revenue between January and August 2025, marking a significant milestone in Nigeria’s push to reduce reliance on oil income and strengthen non-oil revenue streams.

The disclosure was contained in a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy.

President Bola Tinubu, speaking at a meeting with members of the Buhari Organisation led by Senator Tanko Al-Makura in Abuja, described the figures as a strong indicator of the country’s evolving fiscal landscape. He noted that the latest collections represent a 40.5 per cent increase over the ₦14.6 trillion recorded in the same period in 2024.

“This performance places the government firmly on course to meet its full-year targets while reducing reliance on borrowing,” the President said, explaining that the administration has stopped drawing from local banks to finance deficits since early 2025.

Of the total haul, ₦15.69 trillion was generated from non-oil revenues, representing roughly three-quarters of total collections. The Presidency described this as a “historic break from oil dependence,” attributing it to sweeping reforms in tax digitisation, Customs automation, and tougher compliance measures.

The surge in revenue has already translated into higher allocations for states and local councils. In July 2025, monthly disbursements through the Federation Accounts Allocation Committee (FAAC) surpassed ₦2 trillion for the first time, giving subnational governments greater capacity to invest in food security, infrastructure, and social services.

Despite the encouraging performance, President Tinubu acknowledged that government income still lags behind his administration’s ambitions for education, healthcare, and large-scale infrastructure development, stressing that fiscal reforms will remain a top priority.

Commenting on the fiscal trajectory, Onanuga said: “For the first time in decades, oil is no longer the dominant driver of government revenue. Nigeria’s fiscal foundations are being reshaped, and the task ahead is to ensure these gains are felt in the lives of citizens.”

The Presidency confirmed that collections remain ahead of pro-rata expectations, with the Budget Office expected to release validated figures at year-end.

Officials said the revenue growth eases pressure on debt sustainability, as lower domestic borrowing reduces interest rate strain and improves liquidity in the financial system. However, they acknowledged that the ultimate challenge lies in converting the fiscal windfall into visible improvements in job creation, education, and healthcare, as inflation and living costs continue to weigh on households.