The Federal Inland Revenue Service (FIRS) has achieved another historic milestone, collecting a massive ₦22.59 trillion in tax revenue within the first nine months of 2025 and an impressive ₦47.39 trillion over the last two years. The development marks a significant leap in Nigeria’s domestic revenue generation drive, reflecting the impact of far-reaching fiscal and administrative reforms introduced under the leadership of FIRS Executive Chairman, Zacch Adedeji.
According to the latest figures released by the Service, the ₦22.59 trillion generated between January and September 2025 represents about 90 percent of its annual target of ₦25.2 trillion. Within this period, oil-related tax collections amounted to ₦5.29 trillion, representing 98 percent of the expected figure, while non-oil tax receipts surged to ₦17.3 trillion — a remarkable 128 percent of target. This performance places non-oil revenue at 76 percent of the total tax collected so far in 2025, signaling a steady diversification of the nation’s revenue base away from oil dependency.
Over the two-year period spanning October 2023 to September 2025, FIRS recorded ₦47.39 trillion in total collections, representing about 115 percent of its cumulative target. This two-year record underscores Nigeria’s growing efficiency in tax administration and compliance, largely driven by ongoing digital transformation, policy harmonization, and strategic enforcement mechanisms across sectors.
FIRS leadership attributed the strong showing to the Service’s reforms that emphasize innovation, transparency, and accountability in tax processes. Among these are the National Single Window Project, an e-invoicing and e-filing system, and automation initiatives aimed at streamlining tax remittances while curbing leakages. These measures have improved efficiency, widened the tax net, and enhanced compliance, especially among previously underreported sectors of the economy.
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Executive Chairman Zacch Adedeji highlighted that the Service’s commitment to reform is rooted in President Bola Tinubu’s fiscal agenda, which aims to strengthen non-oil revenue and stabilize Nigeria’s public finances. He noted that the upcoming transformation of FIRS into the Nigeria Revenue Service (NRS) by January 1, 2026, will further expand its mandate to include non-tax revenue collection from the upstream petroleum industry, creating a more holistic revenue system for the country.
The record-breaking figures also signify growing confidence in Nigeria’s revenue collection system, with experts noting that improved automation, better taxpayer education, and collaboration with state revenue agencies have started yielding measurable outcomes. The Service has also strengthened partnerships with banks and financial institutions to track and reconcile payments seamlessly through digital platforms, reducing human interference in the process.
Economic analysts believe that the robust tax performance will give the federal government more fiscal room to execute key national projects, including infrastructure renewal, education, healthcare, and social investment schemes. The increased revenue inflow is expected to ease borrowing pressures and enhance Nigeria’s ability to meet both local and international financial obligations without over-reliance on external loans.
However, despite the remarkable progress, experts warn that Nigeria’s tax-to-GDP ratio remains among the lowest globally, indicating untapped potential within the economy. They emphasize the need for the government to ensure that the additional revenue generated is used prudently to improve citizens’ welfare, boost productivity, and foster economic growth. The success of ongoing reforms, they say, will depend on the transparency of revenue utilization and sustained policy consistency.
With the non-oil sector now emerging as a major contributor to the national purse, FIRS says it is determined to surpass its ₦25.2 trillion annual target for 2025. The agency plans to deepen engagement with small and medium enterprises (SMEs), strengthen audit operations, and expand compliance monitoring across industries. By leveraging technology and strengthening data-driven oversight, FIRS believes it can sustain its momentum into 2026 and beyond.
As Nigeria’s fiscal system transitions into a more digital and transparent era, the impressive ₦47.39 trillion revenue achievement in two years stands as a testament to the power of strategic reforms and effective leadership. The FIRS now serves as a symbol of what can be achieved when innovation, accountability, and efficiency drive public revenue collection — setting a new standard for financial governance in Africa.
