The Revenue Mobilisation and Fiscal Commission (RMAFC) has announced a significant increase in revenue collection for the Nigerian government, with inflows into the Federation Account reaching N23.06 trillion in the first ten months of 2025.
Sustained Revenue Growth Over Three Years
Dr. Mohammed Shehu, the Chairman of RMAFC, revealed these figures during a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth in Abuja. He highlighted that this surge is part of a consistent upward trend observed over the past three years.
According to the data presented, total gross accruals stood at N11.93 trillion in 2023 and rose sharply to N21.43 trillion in 2024, before hitting the N23.06 trillion mark by October 2025.
Shehu attributed this remarkable growth to several key government initiatives, including comprehensive fiscal reforms, improved coordination among revenue-generating agencies, stronger audit processes, and the implementation of advanced digital monitoring systems. These measures have collectively enhanced compliance and expanded the national revenue pool available for distribution to federal, state, and local governments.
Drivers of Growth and Economic Implications
The RMAFC chairman emphasized that the sustained increase signals a positive shift towards a more diversified and sustainable public finance system for Nigeria. He noted that the nation's historical over-reliance on oil revenue had made the economy vulnerable to volatile global price swings, complicating long-term fiscal planning.
"These measures have helped strengthen fiscal discipline and expand the revenue pool," Shehu stated, pointing out that the growth reduces dependence on the boom-and-bust cycles of the oil market.
However, Shehu also sounded a note of caution regarding the country's rising debt burden. He explained that debt-service obligations now consume a substantial portion of government revenue, which in turn limits the capacity for public investment across all tiers of government.
The Role of the New Nigeria Tax Act
A major focus of the stakeholders' discourse was the newly enacted Nigeria Tax Act, 2025. Shehu described the legislation as both timely and necessary, as it harmonises numerous previously fragmented tax laws into a single, coherent framework.
The Act, which is scheduled to take effect in January 2026, is designed to eliminate duplication, remove outdated provisions, and improve the overall ease of doing business in Nigeria. Shehu believes it will reduce compliance burdens, create a more predictable fiscal environment, and remove regional disparities in tax administration.
In his presentation, Professor Taiwo Oyedele, Chairman of the Tax Reform Committee, provided further details. He argued that Nigeria needs to streamline its complex tax system, which currently has over 60 different taxes and levies. "Efficiently collecting a few taxes is better than poorly administering many," he said, noting that multiplicity often encourages corrupt practices.
Key provisions of the new Act include exemptions for basic consumption items and for investors from capital gains tax, measures intended to support economic growth and improve voluntary compliance.
Desmond Akawor, Chairman of the Fiscal Efficiency and Budget Committee, echoed these sentiments, describing the Act as a major reform aimed at modernising tax administration, strengthening compliance, and closing existing revenue leakages. He stressed that cooperation between the government, the private sector, and other stakeholders is critical for the success of these reforms.
