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 Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
