The Federal Government of Nigeria has recorded a 76% surge in revenue, reaching N12.5 trillion in 2023, compared to N7.1 trillion in 2022. This boost is attributed to rising tax collections and oil revenues, as highlighted in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper from the Ministry of Budget and Economic Planning.
Key Highlights:
- Oil Revenue Surge
- Oil revenue soared by 200%, from N0.8 trillion in 2022 to N2.4 trillion in 2023, contributing 19.2% of total revenue.
- Crude oil production rose to 1.41 million barrels per day (mbpd) in 2023, up from 1.31mbpd in 2022.
- Non-Oil Revenue Growth
- Non-oil revenue increased by 57.8%, from N6.4 trillion in 2022 to N10.1 trillion in 2023, accounting for 80.8% of total revenue.
- Corporate Income Tax (CIT) and Value-Added Tax (VAT) collections exceeded targets by 103.9% and 23.2%, respectively, with collections totaling N4.27 trillion and N3.64 trillion.
- Customs and Independent Revenues
- Customs revenue amounted to N1.98 trillion, achieving 79.6% of the target.
- Independent revenues contributed N1.84 trillion, while Government-Owned Enterprises (GOEs) retained N2.19 trillion.
- Budget Performance
- The FG’s 2023 revenue outperformed the budget projection of N11.05 trillion, reaching N12.84 trillion.
- Oil revenue contributed N2.38 trillion, while non-oil tax revenue totaled N3.31 trillion, exceeding targets by 6.6% and 34.3%, respectively.
Driving Factors Behind Revenue Growth
The significant increase in revenue is driven by reforms in taxation and enhanced oil production. Recommendations from the Presidential Tax Reform Committee are expected to further improve Nigeria’s tax-to-GDP ratio, which remains low compared to similar economies.
Outlook and Reforms
The Budget Office anticipates more sustainable revenue streams as ongoing reforms take full effect. These improvements align with the goals of the Renewed Hope Agenda, aimed at meeting fiscal obligations and driving economic growth.
International Recognition
Nigeria’s progress in tax reform and transparency has been acknowledged in the 2023 Tax Transparency in Africa Report, which highlights advancements in combating tax evasion through improved Exchange of Information (EOI) strategies.
The government remains optimistic about leveraging these positive trends to achieve fiscal sustainability and fund critical programs for national development.
