FG rakes in ₦20.59trn from non oil revenue in 8 months

By Johnbosco Agbakwuru

ABUJA — THE Presidency on Wednesday said the non oil sector of the economy generated ₦20.59 trillion in eight months, thereby surpassing the federal government revenue target for 2025.

The Presidency also said that the Nigeria Customs Service, NCS, generated ₦3.68 trillion in the first quarter of the year which was ₦390 billion above target, and 56 percent of the full-year goal.

In a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, titled: “Nigeria’s non-oil revenues power strongest fiscal performance in recent history,” the Presidency said the revenue generation has increased what is shared at the Federation Account Allocation Committee, FAAC for the three tiers of government.

The statement partly read: “The Presidency welcomes the latest revenue figures for January–August 2025, showing that Nigeria is achieving unprecedented growth in non-oil collections, a direct result of reforms to improve the government’s fiscal position, strengthen compliance, and digitise tax administration.

“President Bola Tinubu made a pointed reference to this positive growth trajectory in non-oil revenue mobilisation yesterday while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura, which a section of the media has reported out of context.

“The President highlighted the significant growth in non-oil revenues accruing to the Federation, federal, state, and local governments. From January to August 2025, total collections reached N20.59 trillion, a 40.5% increase from N14.6 trillion recorded in 2024. This strong performance aligns with projections, placing the government firmly on course to achieve its annual non-oil revenue target.

“The President also said that the Federal Government is no longer borrowing from local banks to buttress the strong fiscal performance since the start of the year.

“The President commented on tax revenues, which do not include dollar oil receipts, where targets are not being met because of the slump in the crude oil market.”

It further stated that as part of this administration’s inclusive growth policy, resources are being directed closer to the people.

“Therefore, increased revenues have translated into record FAAC disbursements. For the first time in history, monthly allocations to states and local governments crossed ₦2 trillion in July 2025, providing subnational governments with greater fiscal space to fund food security, infrastructure, and social services,” it said.

According to the statement, notwithstanding, the increases in revenues do not yet match the President’s ambitions for expenditures on education, health, and infrastructure, adding that all efforts are being made to address these gaps.

Commenting on the figures, the presidential spokesman, Onanuga, stated, “Nigeria’s fiscal foundations are being reshaped. For the first time in decades, oil is no longer the dominant driver of government revenue.

“The combination of reforms, compliance, and digitisation powers a more resilient economy. The task ahead is to ensure that these gains are felt in the lives of our citizens and in better schools, hospitals, roads, and jobs.”

The statement said the ₦20.59 trillion the country mobilised in eight months was “the most substantial collection in recent history.”

It said non-oil is has become the engine: with ₦15.69 trillion collected, noting, “non-oil revenues account for three out of every four naira, showing a fundamental shift away from oil dependence.”

Beyond inflation, it said: “While inflation and FX revaluation contributed, the uplift is primarily reform-driven — digitised filings, Customs automation, tighter enforcement, and broadened compliance.

“Customs Overperformance: ₦3.68 trillion was collected in H1, ₦390 billion above target, and already 56% of the full-year goal. This reflects systemic changes, not one-off windfalls.

“States’ Fiscal Space Expanded: FAAC allocations reached ₦2 trillion in July for the first time, giving states resources to strengthen local development.

“On track, not overclaiming: The government affirms collections are ahead of pro-rata expectations, with final validation to be published by the Budget Office at the end of the year.

“Revenues are rising, the base is broadening, and reforms are working. The priority is translating these numbers into real relief for citizens by putting food on the table, creating jobs for young people, and investing in roads, schools, and hospitals.”

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