Inflows into Nigeria’s federation account have surged to N23.06 trillion within the first 10 months of 2025, surpassing the gross complete accruals of final 12 months and that of 2023, in keeping with the Income Mobilisation Allocation and Fiscal Fee (RMFAC).
Mohammed Shehu, chairman of the fee made this recognized whereas delivering his remarks on Monday in Abuja at a two-day Nationwide Stakeholders’ Discourse on “Enhancing Fiscal Effectivity and Income Development Below the Nigeria Tax Act, 2025.”
Shehu mentioned the 2025 income efficiency for the interval between January to October beats the whole N11.93 trillion recorded in 2023 and N21.43 trillion in 2024, highlighting the constructive impression of the federal government’s fiscal and tax reforms geared toward boosting revenues.
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RMFAC chief defined that the expansion run was pushed by fiscal reforms, monitoring and coordination amongst income businesses, stronger audits and digital monitoring, including that the measures had expanded the income pool out there for distribution to the Federal, State, and Native Governments.
Nigeria is experiencing a serious shift in its income trajectory after the federal government phased out gasoline subsidies and eliminated synthetic pegs from its alternate price, two insurance policies that at the moment are restoring macroeconomic stability and monetary management in Africa’s greatest oil producer.
The federal government has equally taken a daring step in harmonising its tax legal guidelines and overhauling its fiscal insurance policies in what’s anticipated to enhance tax as a proportion of GDP from a paltry 10 p.c to 18 p.c within the subsequent three years.
Already indicators of income development are displaying as BusinessDay had earlier reported that Nigeria collected extra income in taxes within the seven months to July than it did in 2022 and 2021 mixed, regardless of the oil value dropping under price range projections.
Tax income in Africa’s most populous nation surged to N17.4 trillion between January and July 2025, accounting for 69 p.c of the full-year goal of N25.2 trillion.
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Shehu mentioned the development mirrored progress in direction of a extra resilient and sustainable public finance system with lowered dependence on oil earnings, including that unstable crude costs had traditionally uncovered the nation to boom-and-bust income cycles that undermined fiscal stability and long-term planning.
“The Nigerian financial system had suffered from boom-bust cycles pushed by unstable oil costs, creating unpredictable income streams that undermine long-term planning and monetary stability,” he mentioned.
The RMAFC chairman mentioned the Nigeria Tax Act, 2025, which can take impact on January 1, 2026, was designed to deal with these structural weaknesses by harmonising beforehand fragmented tax legal guidelines right into a single statute.
He mentioned the Act would remove duplication and out of date provisions, scale back compliance burdens for taxpayers, and improve the convenience of doing enterprise throughout the nation.
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“The Nigeria Tax Act, 2025, has not solely harmonised the hitherto Nigeria’s fragmented tax legal guidelines right into a single statute, however it has additionally lowered or eradicated duplication and out of date provisions whereas enhancing ease of doing enterprise,” Shehu acknowledged.
He added that the reforms would create a extra coherent and predictable fiscal atmosphere whereas eliminating regional variations in tax administration.
