Tax reforms: Revenue rises from 6.41trn to 28.79tn in 2025

Tax revenue in Nigeria has surged by over 400 per cent to N28.79 trillion in 2025, highlighting the impact of ongoing fiscal and tax reforms by the President Bola Tinubu led administration.

Data released by the Nigeria Revenue Service (NRS) on Tuesday showed that total revenue grew significantly from N6.41 trillion in 2021, reflecting a sharp increase in collections driven by improved compliance and administrative efficiency.

The Executive Chairman of the NRS, Zacch Adedeji, in his remarks at the official commissioning of the new tax agency headquarters in Abuja, said the growth was largely the result of structural reforms rather than higher tax rates.

“We have carried out one of the most significant revenue reforms in Nigeria’s history by streamlining over 60 fragmented tax laws into a single, more coherent framework,” he said.

According to him, the reforms have improved compliance, enhanced predictability and strengthened efficiency in tax administration, leading to more consistent revenue growth.

Adedeji also noted that the tax base has expanded considerably, with over 19 million taxpayers now captured in the system, including about 814,000 new corporate taxpayers.

He added that better fiscal governance has played a key role, with improvements in remittance systems, transparency and controls on public funds boosting overall performance.

According to the index, monthly revenue collections have also risen sharply, increasing from N711 billion in May 2023 to N3.635 trillion by September 2025.

President Tinubu said the gains were the result of deliberate policy choices aimed at strengthening the country’s fiscal foundation.

“These gains are not incidental; they are the products of deliberate policy, sustained effort and a commitment to doing what is right for the long-term prosperity of our nation,” he said.