FIRS says it collected N20.6trn tax revenue in eight months

The Federal Inland Revenue Service (FIRS) says it collected N20.62 trillion in tax revenue between January and August 2025.

Zacch Adedeji, chairman of FIRS, spoke on Tuesday while addressing State House reporters in Abuja.

According to Adedeji, the figure represents an increase of 40.8 percent, compared to the corresponding period in 2024 and surpasses the baseline growth target of 16.4 percent set for the year.

He said the total revenue target for 2025 is N25.2 trillion.

“An evaluation of revenue collection performance as of August 31, 2025, indicates an upward trajectory relative to the corresponding period in 2024,” the chairman said.

“The growth rate stands at 40.8 percent, translating to N20.62 trillion, substantially exceeding the baseline growth target of 16.4 percent.

“This favourable increase highlights the accelerated pace of revenue collection against 2024 and highlights continued momentum toward achieving the 2025 revenue target.”

He said oil tax revenue stood at N4.98 trillion as of August 31, reflecting a 19.4 percent increase from the N4.18 trillion recorded in the same period of 2024.

Adedeji noted that non-oil tax revenue rose significantly to N15.67 trillion as of August 31, compared to N10.47 trillion in the same period of 2024 — representing a 49.7 percent increase.

“This increase once again underscores the strengthened tax compliance measures and enhanced enforcement strategies implemented by the service,” he said.

’REFORMS HAVE PLACED NIGERIA ON SUSTAINABLE FISCAL PATH’

On federation revenue, the FIRS chairman also compared recent revenue inflows with collections before the removal of petrol subsidy, saying reforms introduced under President Bola Tinubu have placed Nigeria on a more sustainable fiscal path.

“In May 2023, the first month of records we have, collections from NNPC were in the negative because of outstanding subsidy and other payments. As of then, government was owing both NNPC and fuel importers,” he said.

“The total accretion to federation as of May 2023 is N711 billion. That is what we made. As of September, you see the total accretion is N3.6 trillion. That is an increase of 411 percent, which is just as a result of the economic reform decision that Mr. President has taken.”

Adedeji said the reforms have eased pressure on states and reduced dependence on federal bailouts.

“Before now, state governments used to come to Abuja asking for bailouts just to pay salaries, not for infrastructure. Today, no state government, including the federal government, is receiving less than double what they used to get,” he said.

The FIRS boss added that non-oil revenues have increased, moving from about N150 billion in May 2023 to N1 trillion by September 2025, reflecting improved confidence in the economy.

He explained that executive orders have been used to streamline the tax system and place the economy on a stronger footing.

“With your help, we have now put ourselves in Tesla mode. By God’s grace, effective January 1, we will be in Tesla mode,” he added.

“By that time, we will have harmonised all the taxes, reduction in corporate tax rates, budget and spending reforms.“

Adedeji said the reforms are expected to deliver fiscal sustainability for the government, improve the operating environment for businesses, and support household welfare.