The Federal Government’s earnings have surged by 76%, rising from ₦7.1 trillion in 2022 to ₦12.5 trillion in 2023, driven by increased tax revenues and oil income.
This was revealed in the newly released 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, obtained from the Ministry of Budget and Economic Planning.
According to the report, while total revenue grew significantly, oil revenue recorded an extraordinary 200% increase, jumping from ₦0.8 trillion in 2022 to ₦2.4 trillion in 2023.
This accounted for 19.2% of the total revenue. The increase is attributed to higher crude oil production, which rose from an average of 1.31 million barrels per day (mbpd) in 2022 to 1.41 mbpd in 2023.
Non-oil revenue also grew substantially, climbing by 57.8% from ₦6.4 trillion in 2022 to ₦10.1 trillion in 2023, contributing 80.8% of the total revenue.
In 2023, the actual gross oil and gas revenue stood at ₦7.87 trillion, compared to a projection of ₦9.38 trillion, achieving an 83.9% performance rate.
After deductions, net oil and gas revenue credited to the Federation Account was ₦4.93 trillion, exceeding the target by ₦306 billion, or 6.6%.
Non-oil revenue outperformed budget expectations both at gross and net levels. Gross non-oil tax revenue was projected at ₦7.53 trillion but actual collections reached ₦9.89 trillion, surpassing the target by 31.2%.
Corporate Income Tax (CIT) and Value-Added Tax (VAT) collections stood at ₦4.27 trillion and ₦3.64 trillion, exceeding their targets by 103.9% and 23.2%, respectively. Customs revenue was ₦1.98 trillion, achieving 79.6% of the target.
Overall, the Federal Government’s revenue performance exceeded budget expectations across key metrics.
In 2023, while the Federal Government budgeted ₦11.05 trillion in revenue, the actual revenue collected was ₦12.84 trillion, exceeding the target by 16.2%.
Of this revenue, oil income accounted for ₦2.38 trillion, surpassing the target by 6.6%, while non-oil tax revenue contributed ₦3.31 trillion, exceeding projections by 34.3%.
Corporate Income Tax (CIT) and Value-Added Tax (VAT) contributed ₦1.92 trillion and ₦476.11 billion, respectively, representing 106.1% and 24.3% above their budgeted figures.
Revenue from the Nigerian Customs Service totaled ₦889.27 billion, comprising ₦781.80 billion from import duties, excise, and fees, and ₦107.47 billion from Special Levies. Additionally, the Federal Government’s share of the Electronic Money Transfer Levy was ₦23.65 billion.
Independent revenues amounted to ₦1.84 trillion, with ₦159 billion drawn from Special Accounts and ₦256.99 billion generated from Signature Bonuses. The Education Tax yielded ₦719.44 billion.
Revenues from Government-Owned Enterprises (GOEs) retained earnings contributed ₦2.19 trillion, while Grants and Aid totaled ₦1.57 trillion.
These robust performances highlight a significant improvement in revenue generation across various streams.
The budget office said “The expectation is for increased and sustainable revenue streams as the positive effects of the diverse reforms begin to yield the desired results.
“The government will therefore be able to meet its fiscal obligations and implement programmes and projects articulated in the Renewed Hope Agenda of the current Administration.
“While the increase in the non-oil revenue raises the tax-GDP ratio, Nigeria still ranks low when compared with nations with similar economic potentials.
“This narrative could possibly change with the full implementation of the recommendations of the Presidential tax reform committee.
“The progress being recorded in the tax system is already being noticed, with the 2023 Tax Transparency in Africa Report highlighting that Nigeria is making progress in the development of its Exchange of Information (EOI) strategy, aimed at curbing tax evasion through transparency among the 33 member countries.”