The Federal Government of Nigeria has announced a total revenue inflow of N6.9 trillion between January and April 2025, marking a 40% increase compared to N5.2 trillion recorded in the same period last year.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed the figures on Monday in Abuja during the second-quarter Citizens and Stakeholders’ Engagement on Nigeria’s fiscal performance and reform agenda.
The Minister attributed the improved revenue performance to ongoing fiscal and monetary policy reforms, including changes to foreign exchange administration, increased use of technology, and enhanced compliance across Ministries, Departments, and Agencies (MDAs).
He noted that automation and improved transparency have significantly reduced revenue leakages, resulting in better financial outcomes.
“We’ve increased total annual revenue from N12.5 trillion to over N20 trillion in 2024 through a combination of reform initiatives and digital tools,” Edun said.
He added that revenue collection will likely improve further in the coming months, especially when the Federal Inland Revenue Service (FIRS) processes corporate tax filings due by the end of June.
However, Edun pointed out that revenue remittances from some government-owned enterprises continue to face delays due to extended audit and reconciliation processes.
He explained that, under the Fiscal Responsibility Act and the Finance Act 2020, some agencies are required to remit 80% of their operating surpluses but compliance often lags as final audited statements are awaited.
“In such cases, the Auditor-General must first validate the financial reports before reconciliation and remittance can occur,” he said, emphasizing that the government avoids using estimated or unaudited figures to ensure fiscal credibility.
On debt sustainability, the Minister reported encouraging progress, saying, Nigeria’s debt service-to-revenue ratio, which stood at a concerning 150% before the current administration took office in mid-2023, has since declined to 60% by the end of 2024.
This drop, Edun explained, reflects higher revenues and disciplined borrowing practices.
He affirmed that the administration has ended the overreliance on Central Bank overdrafts, popularly known as “Ways and Means,” adhering instead to legal borrowing thresholds to ensure fiscal responsibility.
“Our borrowing is now better regulated, which supports debt sustainability and macroeconomic stability,” he noted.
Despite this progress, oil earnings remain below projections due to low production volumes and unpredictable global prices.
“Crude oil output has not met expectations, and this has affected our short-term revenue targets,” Edun acknowledged.
Nonetheless, he expressed optimism that ongoing efforts to boost production will bear fruit.He further highlighted long-term economic benefits tied to Nigeria’s expanding refining capacity.
Citing the Dangote Refinery’s 650,000 barrels-per-day capability and other modular refineries, Edun said these facilities will help reduce crude exports in favour of value-added petroleum products, thereby creating jobs and increasing foreign exchange inflows.
The Minister also noted that recent sovereign credit rating upgrades from Fitch and Moody’s underscore the positive impact of reforms.
These improved ratings, he said, are attracting global investors and lowering borrowing costs for the country, noting, “Higher credit ratings translate to lower interest on bonds, which helps curb inflation and supports overall economic growth”.
Edun reiterated the administration’s commitment to building a robust, inclusive, and transparent economic framework.
He emphasized that while external factors such as oil market volatility remain, structural reforms already in place are beginning to yield tangible results.
Meanwhile, Nigeria’s new consumer credit scheme is gaining traction.
The Managing Director of CreditCorp, Uzoma Nwagba, announced that about 400,000 young Nigerians are already being profiled under the pilot phase.
He disclosed that eligible applicants, including National Youth Service Corps (NYSC) members—can now access loan packages ranging from N200,000 to N300,000, even before the scheme’s official launch.
The Ministry of Finance Incorporated (MoFI) revealed that it is ramping up efforts to unlock value from public assets.
Executive Director Tajudeen Ahmed, who represented the MoFI Managing Director, Dr. Armstrong Takang, said an estimated N38 trillion worth of government-owned assets have been documented so far.
The registry could reach N70 trillion by 2026, with a long-term target of N100 trillion, he said.
According to Ahmed, the strategy is to deploy these assets more productively to stimulate investment, enhance transparency, and strengthen the capital base of the economy.
