Economy
Nigeria’s Tax Collections Reach N22.59trn in Nine Months, N47.39trn in Two Years
By Adedapo Adesanya
The Federal Inland Revenue Service (FIRS) has achieved significant revenue improvements, as tax collections reached N22.59 trillion between January and September 2025.
This was disclosed by the Chairman of the service, Mr Zacch Adedeji, adding that the service also achieved a record-breaking revenue growth of N47.39 trillion between October 2023 and September this year, representing 115 per cent of its target.
Highlighting FIRS’ key achievements under his watch, he said 2025 represented a period of remarkable achievements and transformation, as non-oil revenue accounted for 76 per cent of total collections, reflecting diversification and reform success.
Giving a breakdown of key tax performance, Mr Adedeji said oil tax revenue stood at N5.29 trillion, representing 98 per cent of target, while non-oil taxes stood at N17.3 trillion, representing 128 per cent of the target for the nine-month period and 76 per cent of total collection.
Non-import VAT accounted for 137 per cent of target while import VAT accounted 131 per cent of target.
Mr Adedeji further assured of fair implementation of the new tax laws, vowing that the service will meet and surpass government revenue target, continually pursue the digitalisation of tax processes, training and retraining of officers, as well as partnership with all stakeholders.
He said FIRS’ proposed transformation to the Nigeria Revenue Service (NRS), effective January 1, 2026, will expand the agency’s mandate to include non-tax revenue collection from Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
The FIRS helmsman stated that building on the foundations laid during his first year in office, the service had continued to strengthen the country’s tax administration through strategic reforms, technological innovation, and enhanced operational efficiency.
He said during the period, the service not only met its revenue targets but also advanced several landmark initiatives that were reshaping the fiscal landscape.
Key milestones included meeting and sustaining revenue collection targets through improved efficiency and compliance measures, and passage of key tax reform acts designed to modernise Nigeria’s tax framework and promote transparency.
Mr Adedeji noted that under his adminstration said the service drove the implementation of National Single Window Project to simplify and harmonise trade and tax processes, as well as the launch of the e-invoicing system to enhance accuracy, accountability, and digital integration in tax collection.
He said the tax policy consisted of a tripod – basically the development of sound and inclusive tax policies that support national growth and fiscal stability; promoting fairness, broadening the tax base, and aligning policy direction with the country’s long-term economic objectives.
The FIRS chairman further clarified that recent tax reforms through the enactment of new laws aimed to promote fairness and equity, competitiveness, simplification, and efficiency of the tax system.
He said modernisation of tax administration was being implemented through technology, process improvement (restructuring of internal operations to a one-stop-shop), and staff capacity development.
“A major highlight of 2025 was the successful passage of several key tax reform laws, part of the government’s broader fiscal modernization agenda. These new laws aim to simplify tax compliance, close administrative gaps, and align Nigeria’s tax system with international best practices.
“Also, a key reform is the transformation of FIRS to the Nigeria Revenue Service (NRS), effective January 1, 2026. This expands the agency’s mandate to include non-tax revenue collection from Nigeria Upstream Petroleum Regulatory Commission (NUPRC).”
Mr Adedeji said, “Building on progress made in 2024, the National Single Window Project advanced significantly in 2025. The digital platform, designed to connect ports, government agencies, and trade stakeholders, is streamlining import and export processes, reducing clearance times, and improving transparency.
“This initiative continues to strengthen Nigeria’s global trade competitiveness and supports the government’s broader agenda to enhance efficiency and ease of doing business.
“In August 2025, FIRS launched the full implementation of the National e-Invoicing Solution (Merchant-Buyer Model) following a successful pilot phase. The system enhances transparency, efficiency, and real-time monitoring of business transactions.”
He stressed that the *829# USSD Code initiative, which was launched on October 9, 2024, will allow taxpayers to access services including retrieving their Taxpayer Identification Number (TIN), verifying TCCs, viewing tax types and rates, locating tax offices and making general enquiries directly from their mobile phones.
On collaborations with other agencies and taxpayer education and awareness, Mr Adedeji stated that FIRS will host a tax clinic across the country to improve tax education and compliance among small businesses, start-ups, and informal sector operators, offering direct assistance with tax filing and dispute resolution.
Commenting on international tax cooperation, he said FIRS advanced Nigeria’s global tax leadership by concluding five mutual agreement processes with Belgium, France, and Netherlands, as well as partnership with the Swedish Revenue Agency to facilitate α training programme on tax administration to increase voluntary compliance.
He said the service concluded treaty negotiations with Hong Kong, Botswana, Tanzania, Rwanda and Switzerland, including renegotiation of legacy tax treaties starting with the Netherlands, and commenced treaty negotiations with Saudi Arabia, Kuwait, Qatar, Morocco, India and Jersey.
“FIRS has in 2025, continued its transformation into a modern, technology-driven, and service-oriented institution, and has achieved major legislative, operational, and technological milestones that position it for sustained growth and greater efficiency.
“FIRS remains committed to simplifying tax, maximising revenue, and enabling national development through transparency, innovation, and stakeholder collaboration,” he noted.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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