December 16, (THEWILL) — Inflows into Nigeria’s Federation Account rose to ₦23.06 trillion in the first 10 months of 2025, driven by ongoing fiscal reforms, tighter audits, and improved coordination among revenue-generating agencies, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said.
The Chairman of the commission, Mohammed Shehu, disclosed this on Monday in Abuja while delivering his keynote address at a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025.
Shehu said total accruals into the Federation Account between January and October 2025 amounted to ₦23,058,248,707,725.50, describing the figure as evidence of growing fiscal discipline and improved revenue mobilisation across government institutions.
According to him, the performance represents a steady improvement over previous years, with gross accruals rising from ₦11.93 trillion in 2023 to ₦21.43 trillion in 2024.
He attributed the surge to fiscal reforms, stronger tracking and coordination among revenue agencies, enhanced audits, digital revenue monitoring, and improved compliance, noting that the measures had expanded the revenue pool available for distribution to the Federal, State, and Local Governments.
Shehu said the trend reflects progress towards a more resilient and sustainable public finance system, with reduced reliance on oil revenues that have historically exposed the economy to volatile boom-and-bust cycles.
“The Nigerian economy has suffered from boom-bust cycles driven by volatile oil prices, creating unpredictable revenue streams that undermine long-term planning and fiscal stability”, he said.
The RMAFC chairman said the Nigeria Tax Act, 2025, which will take effect on January 1, 2026, was designed to address long-standing structural weaknesses by harmonising previously fragmented tax laws into a single statute.
He stated that the Act would eliminate duplication and obsolete provisions, reduce compliance burdens for taxpayers, and enhance the ease of doing business nationwide, while creating a more predictable fiscal environment.
Shehu also linked the improved revenue profile to broader macroeconomic developments, citing a decline in inflation and relative stability in the foreign exchange market. He said inflation dropped consecutively over four months, from 21.88 percent in July to 16.05 percent in October, while the naira strengthened from ₦1,534 to the dollar in July to ₦1,428 in October.
He added that economic growth continues to be driven largely by the services and non-oil sectors, even as oil still accounts for over 90 percent of export earnings while contributing less than 10 percent to gross domestic product.
On the role of the commission, Shehu said RMAFC would intensify monitoring of revenue collections and disbursements from the Federation Account through enhanced oversight, forensic audits, and stronger collaboration with subnational governments to boost non-oil revenue mobilisation.
Also speaking at the discourse, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, stated that the Nigeria Tax Act, 2025, was designed to correct decades of structural weaknesses in the country’s tax system and promote fairness, efficiency, and economic growth.
Oyedele added that Nigeria’s tax framework had become overly complex and punitive, stressing that incremental reforms were no longer sufficient. He explained that the new laws repealed major existing tax statutes and replaced them with modern provisions aimed at stopping what he described as taxing poverty, capital, and investments.
According to him, the reforms prioritise fairness, harmonisation, ease of doing business, transparency in the use of tax revenues, and economic development, while focusing on efficiency rather than introducing new taxes.
Oyedele disclosed that from January 2026, low-income earners, including those on the national minimum wage, would be exempted from personal income tax, while middle-income earners would benefit from reduced PAYE obligations.
He added that essential consumptions such as food, transport, health, education, and rent would be zero-rated for value-added tax to reduce living costs, with VAT incurred by businesses refunded to prevent hidden taxes being passed on to consumers.
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr Jani Ibrahim, commended the reforms, describing the Nigeria Tax Act, 2025, as a major step towards strengthening revenue mobilisation, improving tax administration, and promoting fiscal sustainability across all tiers of government.
In his welcome address, a Federal Commissioner at RMAFC and Chairman of the Fiscal Efficiency and Budget Committee, Desmond Akawor, described the discourse as a defining moment in Nigeria’s fiscal journey, noting that the decisions taken would shape the stability, sustainability, and resilience of the country’s public finances in the years ahead.
Goodwill messages at the event reflected broad stakeholder support for the reforms. The Governor of the Central Bank of Nigeria, Olayemi Cardoso, represented by the Deputy Governor for Financial System Stability, Philip Ikeazor, said the reforms would broaden the tax base, improve compliance, reduce dependence on oil revenues, and strengthen transparency through a modernised and digitalised tax administration system.
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