Tinubu: Tax-to-GDP ratio has increased to 13.5% | Debt service-to-revenue ratio down to 50%

President Bola Tinubu says Nigeria’s tax-to-GDP ratio has risen to 13.5 percent, up from less than 10 percent.

Tinubu announced in his Independence Day speech on Wednesday.

“Our tax-to-GDP ratio has risen to 13.5 percent from less than 10 percent. The ratio is expected to increase further when the new tax law takes effect in January,” he said.

“The tax law is not about increasing the burden on existing taxpayers but about expanding the base to build the Nigeria we deserve and providing tax relief to low-income earners.”

He added that the federal government’s debt service-to-revenue ratio has been reduced from 97 percent to below 50 percent.

In November 2024, Tinubu said Nigeria’s debt service-to-revenue ratio reduced from 97 percent to 65 percent.

“We have paid down the infamous “Ways and Means” advances that threatened our economic stability and triggered inflation,” the president said.

“Following the removal of the corrupt petroleum subsidy, we have freed up trillions of Naira for targeted investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government.”

Tinubu also said Nigeria’s external reserves increased to $42.03 billion in September — the highest since 2019.

On trade performance, the president noted that Nigeria has recorded a surplus for five consecutive quarters, with exports outpacing imports.

“Nigeria’s trade surplus increased by 44.3 percent in Q2 2025 to N7.46 trillion ($4.74 billion), the largest in about three years. Goods manufactured in Nigeria and exported jumped by 173 percent,” Tinubu said.

“Non-oil exports, as a component of our export trade, now represent 48 per cent, compared to oil exports, which account for 52 per cent.”

The president added that the development indicates that Nigeria is diversifying its economy and expanding foreign exchange earnings beyond oil and gas.