The Federal Government, through the Federal Inland Revenue Service, has recorded a significant revenue surge in the first half of 2025, collecting a total of N14.27tn, representing a 43 per cent growth compared to the same period in 2024, data from a performance evaluation report obtained from the presidency revealed.
The figure, which exceeds the baseline growth target of 16.4 per cent, puts the service on a strong trajectory toward achieving its N25.2tn revenue target for 2025.
A breakdown of the revenue performance showed that collections in the first six months of 2025 outpaced the N9.98tn realised in the same period of 2024.
The analysis underscores a marked improvement in both oil and non-oil tax receipts.
“The favourable increase highlights the accelerated pace of revenue collection against 2024 and underscores continued momentum toward achieving the 2025 revenue target,” the report said.
The document obtained from the presidency on Wednesday disclosed that oil tax revenue for the period stood at N3.63tn, up from N2.60tn in the first half of 2024, reflecting a 39.4 per cent increase.
The growth comes amid improved compliance by oil companies and intensified efforts by the Federal Inland Revenue Service to track and tax extractive industry earnings.
Similarly, non-oil tax receipts continued to outperform oil revenues, recording N10.64tn compared to N7.37tn in the same period last year. This represents a 44.2 per cent increase, signalling improved tax collection, broadening of the tax base, and enforcement of compliance strategies.
“This increase once again underscores the effectiveness of revenue diversification initiatives, strengthened tax compliance measures, and enhanced enforcement strategies implemented by the Service,” the report noted.
A monthly analysis of the revenue collections showed a steady upward trend across the first half of the year. The sharpest year-on-year increases occurred in March and April, where revenue doubled compared to 2024, indicating possible seasonal or policy-driven spikes
In January, revenue rose sharply from N1.30tn in 2024 to N2.32tn in 2025. February recorded a more modest increase, with collections rising from N1.57tn to N1.67tn.
The upward trend accelerated in March as revenue nearly doubled, moving from N1.08tn to N2.12tn, while April followed a similar pattern with collections surging from N1.26tn in 2024 to N2.53tn.
In May, revenue climbed from N1.71tn to N1.97tn, and in June, it increased from N3.06tn to N3.66tn, further highlighting the government’s improved revenue performance in the first half of 2025.
The 2025 Appropriation Act sets the FIRS total revenue projection at N25.2tn, according to budget documents reviewed by The PUNCH. With N14.27tn already collected as of June 30, the government has achieved 78 per cent of its full-year budgeted revenue in just six months.
This indicates the government may exceed its budgeted revenue by year-end, especially if the current growth trajectory continues into the second half of 2025.
If the pace is sustained, projected revenue by December 2025 could reach or even exceed the FIRS internal target of N25.2tn, which is 37.6 per cent higher than the figure captured in the national budget.
Such performance could provide the Federal Government with fiscal flexibility to fund infrastructure, reduce borrowing, and possibly clear arrears, though actual revenue utilisation and cash inflows remain subject to macroeconomic conditions and oil market volatility.
