The Federal Inland Revenue Service has recorded an unprecedented tax collection of N47.39 trillion between October 2023 and September 2025.
This performance occurred under the leadership of the current FIRS Chairman, Zacch Adedeji.
President Bola Tinubu appointed the tax chief on September 14, 2023.
According to the latest performance data obtained by our correspondent on Sunday, the agency surpassed its revenue target by 15 per cent.
The figures revealed steady growth in both oil and non-oil revenue categories, showing the results of ongoing tax reforms and modernisation efforts.
The N47.39tn collected marks a sharp rise from the N21.97tn generated between October 2021 and September 2023, representing a 115 per cent achievement above the target.
Within the same period, non-import VAT exceeded its target by 137 per cent, while import VAT achieved 131 per cent, indicating stronger compliance among registered businesses through enhanced digital tracking and tighter enforcement of remittances across major industries.
The report stated, “In the last two years (October 2023 to Sept 2025), FIRS achieved significant revenue improvements in mobilisation.
It achieved a record-breaking revenue growth of N47.39tn, representing 115 per cent of the target. Non-oil revenue accounted for 76 per cent of total collections, reflecting diversification and reform success.”
From January to September 2025 alone, FIRS generated N22.59tn, which equals 120 per cent of its revenue target and around 90 per cent of its yearly goal of N25.2tn.
Of this figure, oil tax receipts amounted to N5.29tn, representing 98 per cent of the target for the period. Despite persistent challenges in the upstream oil sector, this figure suggests better compliance and recovery in petroleum profit and hydrocarbon taxes.
Conversely, non-oil taxes rose sharply to N17.3tn, surpassing estimates by 128 per cent and accounting for 76 per cent of the total revenue within the reviewed period.
Between January and September 2025, the Service achieved a total revenue of N22.59tn, which represents 120 per cent of the target for the timeframe and about 90 per cent of the annual goal.
“Of this amount, oil tax revenue stood at N5.29tn, achieving 98 per cent of the target, while non-oil taxes contributed N17.3tn, representing 128 per cent of the target and accounting for 76 per cent of the total collection,” it added.
The strong performance was mainly driven by Company Income Tax (non-oil), which made up 32.6 per cent of total revenue, followed by non-import VAT (23.2 per cent) and Petroleum Profit Tax/Hydrocarbon Tax (17.4 per cent).
Other notable contributors included Company Income Tax (upstream operations) at 7.1 per cent, import VAT (7.03 per cent), education tax (6.1 per cent), and gas income (2.3 per cent).
Smaller shares came from levies such as electronic money transfer charges, capital gains tax, and stamp duties.
FIRS credited the surge in revenue to its ongoing reform agenda under the current management, which includes digital tools such as the National Single Window, the National E-Invoicing System, and stronger collaboration with stakeholders.
The agency also attributed the success to new tax reform legislation introduced in 2025, which simplified compliance, closed administrative gaps, and aligned Nigeria’s tax structure with global standards.
If the current momentum continues, total revenue by December 2025 could reach or surpass FIRS’s internal goal of N25.2tn — about 37.6 per cent above the figure reflected in the national budget.
Such a result could give the federal government greater financial flexibility to fund infrastructure projects, reduce borrowing, and possibly settle outstanding obligations. However, actual utilisation of the funds remains dependent on economic conditions and fluctuations in the oil market.
Nevertheless, the FIRS Chairman stated during a media briefing that the government would continue to borrow despite the agency’s strong revenue performance in recent months.
He maintained that borrowing should not be viewed as a weakness but as a component of a comprehensive economic plan.
“Borrowing is not a problem… Is borrowing not part of the budget we submitted to the National Assembly? Was it not approved? Are we borrowing aside what was approved?”
Adedeji told State House Correspondents during the Meet-the-Press series organised by the Presidential Communications Team at the Aso Villa, Abuja, last month.
He explained that the approach forms a crucial part of Nigeria’s financial framework and overall economic plan, adding that it is meant to balance current revenue gains with long-term development goals: “What is the component of a country’s budget? You have your expenditure, revenue, and loan in all budgets. So, if my expenditure for this year is N100,000 and my plan is that N80,000 will be from my revenue, I will borrow N20,000. If I’ve done revenue of N90,000 and I’m borrowing N10,000 according to what I have in my budget, what is the problem with that?”
