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The Federal Inland Revenue Service (FIRS) has achieved a record N47.39 trillion in tax revenue between October 2023 and September 2025 under Chairman Zacch Adedeji, surpassing its target by 15% and strengthening Nigeria’s fiscal position.
The Federal Inland Revenue Service (FIRS) has achieved a historic revenue collection milestone, recording N47.39 trillion in total tax revenue between October 2023 and September 2025 under the leadership of its Executive Chairman, Dr. Zacch Adedeji. The achievement marks the highest collection in the agency’s history, reflecting strong performance in both oil and non-oil tax categories.
According to official data obtained on Sunday, the revenue figure exceeded the FIRS’s target by 15 per cent, signalling improved compliance, enhanced digital monitoring, and the positive impact of ongoing tax reforms and modernisation initiatives.
The report revealed that the total revenue collection represents a 115 per cent performance against target and more than double the N21.97 trillion collected between October 2021 and September 2023. This significant growth, analysts say, demonstrates how digital transformation and policy reforms are driving Nigeria’s fiscal expansion despite global economic challenges.
Within the two-year period, non-import Value Added Tax (VAT) exceeded its target by 137 per cent, while import VAT recorded 131 per cent, indicating stronger compliance by registered businesses.
A statement from the FIRS said: “In the last two years, from October 2023 to September 2025, FIRS achieved significant improvement in revenue mobilisation, collecting N47.39 trillion, representing 115 per cent of the target. Non-oil revenue accounted for 76 per cent of total collections, showing the success of ongoing diversification and reform efforts.”
From January to September 2025 alone, the Service collected N22.59 trillion, amounting to 120 per cent of its revenue target and about 90 per cent of the annual projection of N25.2 trillion. Out of this figure, oil tax receipts contributed N5.29 trillion, representing 98 per cent of the target, while non-oil taxes surged to N17.3 trillion, surpassing projections by 128 per cent and accounting for 76 per cent of total revenue.
The revenue breakdown showed that Company Income Tax (non-oil) made up 32.6 per cent of total receipts, followed by non-import VAT (23.2 per cent), Petroleum Profit Tax/Hydrocarbon Tax (17.4 per cent), Company Income Tax (upstream) at 7.1 per cent, import VAT (7.03 per cent), education tax (6.1 per cent), and gas income (2.3 per cent). Levies from electronic money transfer charges, capital gains, and stamp duties contributed smaller shares.
The FIRS credited the sharp rise in revenue to its digital transformation agenda, particularly the deployment of key technological platforms such as the National Single Window, the National E-Invoicing System, and improved taxpayer integration systems. These tools, according to the agency, have significantly enhanced transparency, reduced leakages, and simplified compliance procedures.
The introduction of new tax reform laws in 2025, which aligned Nigeria’s tax framework with global standards, also played a major role. The reforms streamlined filing processes, expanded the tax net, and strengthened enforcement mechanisms across major sectors.
FIRS Chairman Dr. Zacch Adedeji, appointed by President Bola Tinubu in September 2023, has consistently emphasised performance-driven leadership, technology adoption, and accountability as the foundation of the agency’s success.
Speaking recently at the Meet-the-Press session organised by the Presidential Communications Team at the Aso Villa, Abuja, Adedeji said the government will maintain a balanced fiscal approach that includes strategic borrowing where necessary.
“Borrowing is not a problem; it is part of the national budget process approved by the National Assembly. Every country borrows to fund development,” he said. “If our budgeted expenditure is N100,000 and we expect to generate N80,000 in revenue, borrowing N20,000 is normal. Even if we exceed our revenue projections, borrowing within approved limits remains part of our fiscal plan.”
He explained that the government’s fiscal strategy aims to balance short-term financing with long-term growth, noting that the rising revenue base will help Nigeria reduce overreliance on external loans in the future.
Economic analysts say the record collection offers Nigeria a critical opportunity to strengthen its fiscal position, fund key infrastructure projects, and improve debt servicing capacity. However, they caution that sustained progress will depend on consistent reforms, transparency, and effective utilisation of revenue.
If the FIRS maintains its current momentum, projections indicate that total revenue for 2025 could exceed N25.2 trillion, about 37.6 per cent higher than the figure captured in the national budget. Such performance would give the Federal Government more fiscal flexibility to finance projects, stabilise the economy, and support social investment programmes.
The FIRS reiterated its commitment to driving Nigeria’s revenue growth through innovation, efficiency, and partnership with taxpayers. It also reaffirmed that the agency will continue to work closely with the Federal Ministry of Finance, state tax authorities, and international partners to sustain reforms and expand the tax base.
