The Federal Government generated ₦6.9 trillion in revenue in the first quarter (Q1) of 2025, representing a 40 percent year-on-year increase over the ₦5.2 trillion recorded in the corresponding period of 2024.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a stakeholder engagement session in Abuja.
According to the minister, the significant revenue growth was driven by ongoing structural reforms in the foreign exchange market, improved fiscal governance, and widespread adoption of automation across Ministries, Departments, and Agencies (MDAs).
Edun stated, “Through improved transparency, automation, and plugging revenue leakages, we’ve moved from an annual revenue of about ₦12.5 trillion to over ₦20 trillion in 2024.
In the first four months of 2025, ₦6.9 trillion has already been generated, and that momentum continues.”
The minister noted that reforms initiated under President Bola Tinubu’s administration have begun to yield positive fiscal outcomes, with improved revenue mobilisation and a decline in the debt-service-to-revenue ratio.
According to Edun, the ratio dropped to 60 percent at the end of 2024, a significant improvement from the 150 percent recorded in Q1 2023 under the previous administration.
However, he acknowledged that oil revenue continues to underperform due to production shortfalls and global price volatility.
“We’re not where we expected to be on oil output. Every effort is being made to raise production, but this has had an impact on short-term revenue projections and debt service funding,” he said.
Despite these constraints, the government remains optimistic about long-term revenue prospects. Edun highlighted the role of increased domestic refining capacity—driven by the 650,000 barrels-per-day Dangote Refinery and several modular refineries—which is expected to reduce crude exports, enhance local value addition, and improve foreign exchange inflows through refined product exports.
The minister further confirmed that several government-owned enterprises and revenue-generating agencies continue to delay remittances to the Consolidated Revenue Fund (CRF) due to ongoing audit and reconciliation processes. He emphasised the need for full compliance with the Fiscal Responsibility Act and the Finance Act 2020, which mandate the remittance of 80 percent of operating surpluses to the federal treasury.
Meanwhile, at a separate budget defence session, the Senate Committee on Customs directed the Nigeria Customs Service (NCS) to revise its 2025 revenue target upward from ₦6.584 trillion to ₦10 trillion, following its strong performance in 2024.
The NCS reportedly exceeded its 2024 revenue target of ₦5.079 trillion by over ₦1 trillion.
Committee Chairman, Senator Isah Jibrin, commended the agency’s performance and urged it to intensify border control, curb smuggling, and align its operations with national economic goals.
He stressed that reducing imports to essential items and promoting local production would conserve foreign exchange and boost domestic industry.
The approved NCS revenue and expenditure estimates for 2025—₦6.584 trillion and ₦1.132 trillion respectively—will be presented to the Senate during plenary.
As the Tinubu administration continues its fiscal consolidation efforts, expectations remain high for sustained revenue performance and policy consistency.
Analysts note that successful implementation of FX reforms, enforcement of remittance laws, and expansion of the non-oil revenue base will be critical to Nigeria’s macroeconomic stability in 2025 and beyond.
