Federation Account inflows 2025 rise to N23tn, boosted by tax reforms, audits, and better coordination among Nigerian revenue agencies

The Revenue Mobilisation Allocation and Fiscal Commission reported that inflows into the Federation Account reached N23.06 trillion in the first 10 months of 2025, citing fiscal reforms, stronger audits, and improved coordination among revenue agencies as key drivers.

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Mohammed Shehu, Chairman of the commission, disclosed the figure during his keynote address at the two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025, in Abuja.

“The 10-month accrual into the Federation Account from January to October 2025 was N23,058,248,707,725.50,” Mr Shehu said, describing the growth as evidence of increasing fiscal discipline and improved revenue mobilisation.

The surge marks steady improvement over prior years, with gross accruals standing at N11.93 trillion in 2023 and N21.43 trillion in 2024.

Shehu attributed the increase to fiscal reforms, enhanced audits, digital tracking, and better inter-agency coordination, which have expanded the revenue pool available for distribution to the Federal, State, and Local Governments.

Mr Shehu noted the progress signalled a move toward a more resilient and sustainable public finance system with reduced dependence on oil revenues, historically subject to volatile pricing and unpredictable revenue cycles.

He highlighted that the Nigeria Tax Act, 2025, taking effect January 1, 2026, harmonises previously fragmented tax laws into a single statute, eliminating duplication, reducing compliance burdens, and enhancing ease of doing business nationwide.

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, described the reforms as a necessary transformation of Nigeria’s complex and punitive tax system.

“Incremental fixes are no longer sufficient. We needed a transformation,” he said, noting the new laws exempt low-income earners from personal income tax and reduce obligations for middle-income earners.

Mr Oyedele added that value-added tax on essential goods such as food, transport, health, education, and rent would be zero-rated, ensuring businesses do not pass hidden costs to consumers.

The reforms also exempt most investors from capital gains tax, aiming to deepen the capital market and support long-term economic growth.

Dr Jani Ibrahim, National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, welcomed the reforms, describing them as a step toward equitable revenue mobilisation, predictable tax policies, and stronger public-private trust.

Federal Commissioner and Chairman of the Fiscal Efficiency and Budget Committee, Desmond Akawor, said the discourse marked a defining moment in Nigeria’s fiscal trajectory, noting that decisions taken would influence the country’s public finances for years to come.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, represented by Deputy Governor Philip Ikeazor, emphasised that the reforms would broaden the tax base, enhance compliance, and reduce reliance on oil revenues while supporting a modernised, digitalised tax administration.

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The Federation Account inflow surge coincides with broader macroeconomic improvements, including declining inflation and relative exchange rate stability, underpinning optimism for Nigeria’s fiscal sustainability.