The Federal Government has recorded a significant surge in inflows into the Federation Account, with total accruals reaching ₦56.42 trillion between 2023 and the first ten months of 2025, driven by fiscal reforms and improved revenue administration.
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, disclosed this at a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025, held in Abuja.
According to data presented by the commission, gross accruals into the Federation Account stood at ₦11.93 trillion in 2023, rose sharply to ₦21.43 trillion in 2024, and climbed further to ₦23.06 trillion between January and October 2025 alone. The 2025 figure, Shehu noted, has already surpassed the full-year performance of previous years, signalling sustained growth in government revenue.
Shehu attributed the upward trend to deliberate policy measures, including stronger fiscal discipline, improved coordination among revenue-generating agencies, enhanced audits, digital tracking systems, and better compliance mechanisms.
“The continued growth in inflows is due to fiscal reforms, tracking and coordination among revenue agencies, stronger audits, digital tracking, and improved fiscal discipline,” he said.
He explained that these measures have helped broaden the revenue base, improve transparency in collections and remittances, and increase the pool of funds available to the federal, state and local governments.
The RMAFC chairman described the development as a structural shift in Nigeria’s public finance system, noting that it reflects progress towards a more resilient, diversified and sustainable revenue framework with reduced dependence on crude oil.
“This shift marks progress towards a more resilient, diversified and sustainable public finance system with less dependence on oil earnings,” Shehu said.
He recalled that Nigeria’s long-standing reliance on oil revenues has exposed the economy to boom-and-bust cycles linked to volatile global prices, resulting in unstable revenue streams that undermine effective long-term planning. He added that rising debt-service obligations have further constrained public investment across all tiers of government.
Against this backdrop, Shehu described the stakeholders’ discourse as both timely and necessary, saying it offered a platform to build consensus around reforms introduced under the Nigeria Tax Act, 2025.
“Bearing these in mind, the National Stakeholders’ Discourse with the theme ‘Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025’ is not only timely but necessary,” he said.
He explained that the new tax law has harmonised Nigeria’s previously fragmented tax framework into a single statute, eliminating duplication and obsolete provisions that had complicated compliance for businesses and individuals, while strengthening the overall efficiency of the tax system.
