Nigeria’s revenue reforms yield record gains as tax, oil, mining

By Sunday Ani

The convener of the Bola Ahmed Tinubu Ideological Group (BAT-IG), Bamidele Atoyebi said Nigeria has recorded significant increases in government revenue, foreign reserves, banking sector capital and non-oil earnings following a series of fiscal and structural reforms introduced under President Bola Tinubu’s administration.

He said the reforms had strengthened revenue collection across key government agencies, reduced reliance on oil receipts and improved the country’s fiscal outlook.

“President Tinubu is applying the same reform-driven approach that transformed Lagos into an economic powerhouse. True nation-building often requires difficult decisions and structural adjustments before the benefits become visible. The results emerging across revenue generation, foreign reserves and investment flows suggest that those reforms are beginning to yield measurable outcomes.

“The Federal Inland Revenue Service (FIRS) recorded substantial growth in tax collections over the period. Revenue rose from N4.95 trillion in 2020 and N6.41 trillion in 2021 to N10.1 trillion in 2022, comprising N4.09 trillion from oil taxes and N5.96 trillion from non-oil sources. Collections increased further to N12.37 trillion in 2023 before reaching N21.7 trillion in 2024, exceeding government targets by 11 percent.

“The momentum continued through a rolling two-year period between October 2023 and September 2025, when the total collections reached N47.39 trillion. Non-oil taxes accounted for more than 76 percent of the total revenue generated during the period,” he said.

Atoyebi said the figures reflect the growing importance of economic diversification and stronger tax administration.

“The shift towards non-oil revenue is one of the most important developments in Nigeria’s fiscal landscape. It demonstrates that government revenue is increasingly being supported by broader economic activity rather than dependence on crude oil earnings alone,” he said.

The Nigerian National Petroleum Company Limited (NNPC) also witnessed significant changes in remittance structures following reforms in the petroleum sector.

“Between 2020 and 2022, the company recorded prolonged periods without statutory profit remittances to the Federation Account because subsidy-related costs and fuel landing expenses were deducted at source. Following the implementation of the Petroleum Industry Act and the removal of fuel subsidy in 2023, remittances resumed, including a N123 billion payment in June of that year.

“Oil-sector contributions increased further in 2025 as production climbed to about 1.68 million barrels per day. Remittances to the Federation Account exceeded N10.07 trillion between January and August and later crossed N12 trillion within 10 months.

“A major turning point came in February 2026 with the implementation of Executive Order 9, which required royalties, taxes and production sharing contract profits to be paid directly into the Federation Account. The order also ended deduction mechanisms that previously reduced the volume of funds available to the government.

“As a result, monthly receipts increased by 60 percent, rising from N1.8 trillion in February to N2.88 trillion in March 2026.

“The Nigeria Customs Service also reported steady revenue growth during the reform period. Collections increased from N1.56 trillion in 2020 to N2.24 trillion in 2021 and N2.69 trillion in 2022.

“Revenue reached N3.2 trillion in 2023 before rising sharply in subsequent years. By late 2025, Customs had generated N7.28 trillion, while total collections between 2020 and 2025 exceeded N26 trillion.

More than N17 trillion was remitted to the Federation Account during the period.

“The revenue gains were supported by the Nigeria Customs Service Act 2023, which abolished the long-standing seven percent cost-of-collection deduction model and introduced a revised revenue framework,” he stated.

He noted that the solid minerals sector also recorded growth following reforms introduced by the Ministry of Solid Minerals Development and the Solid Minerals Development Fund through the EMERGE programme.

“The initiative focused on mineral exploration, critical minerals development and research funding aimed at promoting local value addition and processing. Mining revenue increased from a pre-reform level of N16 billion to N38 billion in 2024 and surpassed N70 billion by late 2025.

“The reforms led to the revocation of more than 3,000 inactive mining licences, attracted approximately $2.2 billion in fresh investments and facilitated an additional $1.3 billion in active investment commitments.

“Nigeria’s foreign reserves also improved after years of volatility. External reserves stood at $35.4 billion in 2020 and rose to $40.5 billion in 2021 before declining to $37.1 billion in 2022 and $34.2 billion in 2023. Reserves recovered $40.8 billion by the end of 2024 and climbed to $45.5 billion by late 2025.

“The upward trend continued into 2026, reaching a 13-year high of $50.45 billion in February before settling at about $49.49 billion in May. Net foreign exchange reserves stood at $34.8 billion during the period,” he stated.

Atoyebi said the improvement reflected stronger investor confidence and growing capital inflows.

“Rising reserves strengthen the country’s ability to withstand external shocks, support exchange-rate stability and enhance investor confidence in the economy.

“The Central Bank of Nigeria also concluded a 24-month banking recapitalisation programme, with all 33 licensed banks meeting new minimum capital requirements.

“The exercise attracted N4.65 trillion in fresh capital, equivalent to about $3.36 billion. Domestic investors accounted for 72.55 percent of the funds raised, while foreign investors contributed 27.45 percent.

“Under the new framework, banks with international licences are required to maintain a minimum capital base of N250 billion, national banks N125 billion and regional banks N25 billion,” he stated.

He described the recapitalisation exercise as a major step towards strengthening the financial system.

“A stronger banking sector provides the foundation for sustainable economic growth. The successful completion of recapitalisation by all institutions demonstrates resilience within the financial system and positions banks to support larger investments across the economy,” he said.

He added that the combination of higher tax revenues, increased oil remittances, growing mining receipts, stronger reserves and a recapitalised banking sector points to the emergence of a more diversified and resilient Nigerian economy.