The federal government, yesterday, revealed that it collected a total of N14.27 trillion in tax revenues between January and June this year, achieving 43 per cent increase from N9.98 trillion realised in the first half of 2024.
The revenue collection performance also substantially exceeded the baseline growth target of 16.4 per cent.
According to a report by the presidency, non-oil tax collection grew by 44.2 per cent to N10.64 trillion in June, compared to N7.37 trillion in same period of 2024.
The revelation came as Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, welcomed Nigeria’s 2024 rebased Gross Domestic Product (GDP) figures, and the 3.13 per cent first quarter (Q1) 2025 growth estimate, describing both as important signals of the country’s economic resilience and renewed momentum.
However, analysts reacted to the rebased GDP estimates, which put the economy at fourth position in Africa, saying attaining the federal government’s target of $1 trillion economy by 2030 is now a tall order.
Similarly, Lagos Chamber of Commerce and Industry (LCCI) urged the federal government to look beyond the optimistic figures and address the reality that a large portion of Nigerians were trapped in harsh economic conditions that had further imposed poverty.
The significant revenue performance in the first six months of the year was attributed to the effectiveness of revenue diversification initiatives, strengthened tax compliance measures, and enhanced enforcement strategies implemented by the Federal Inland Revenue Service (FIRS).
The 2025 revenue target represented a 16.4 per cent increase relative to the total revenue collected in 2024.
Oil tax revenue totalled N3.63 trillion, representing a significant growth of 39.4 per cent over compared to N2.60 trillion realised in the corresponding period of 2024.
The report pointed out that achieving the annual target necessitated sustaining a baseline growth rate of 16.4 per cent compared to the corresponding revenue collections from the previous year.
The benchmark served as an essential reference point for performance evaluation.
An evaluation of revenue collection performance as of June 30, 2025 indicated an upward trajectory relative to the corresponding period in 2024.
The report said, “This favourable increase highlights the accelerated pace of revenue collection against 2024 and highlights continued momentum toward achieving the 2025 revenue target.”
President Bola Tinubu signed new tax laws last month aimed at lifting the ratio of tax to GDP to 18 per cent by 2030, from about 13 per cent currently.
In a statement issued by Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga, Edun commended the National Bureau of Statistics (NBS) “for its professionalism and technical rigour in delivering the rebasing exercise and quarterly GDP reports”.
He added, “These data tools are critical to designing policies that are grounded in reality and aimed at unlocking the full potential of Nigeria’s economy.”
In nominal terms, the Nigerian economy grew from N205.09 trillion in the base year of 2019 to N372.82 trillion, according to NBS, which released the rebased GDP and Q1 economic growth figures on Monday.
The GDP rebasing – Nigeria’s first since 2014 – was undertaken by NBS in line with international best practices, and represented a critical step towards more accurate, up-to-date, and comprehensive measurement of the economy.
Using the prevailing N1,529.53 per dollar exchange rate, the data showed that the economy was worth $243,526,768,148.72 in dollar terms, indicating that Nigeria trails behind South Africa, with an economy worth $410,338 billion, Egypt with $347,342 billion, and Algeria with $268,885 billion.
Edun stated that with the rebasing, the updated national accounts now better reflected structural changes in the economy, including the rise of the digital and creative sectors, increased activity in services, and stronger diversification across non-oil industries.
The minister stated, “The rebased GDP provides a clearer lens through which to view Nigeria’s economic performance. It allows policymakers, investors, and citizens to better understand the true size and composition of the economy, so we can plan more effectively and deliver greater prosperity to all Nigerians.”
The statement added that the rebased data revealed important shifts in the structure of the Nigerian economy.
It said, “Notably, the services sector—particularly ICT, finance, entertainment, and professional services—now accounts for a larger share of GDP.
“Agriculture and manufacturing remain vital contributors, while the role of oil and gas continues to decline in relative terms, underscoring the impact of ongoing diversification efforts.
“These changes are not just statistical—they reflect real transitions underway in the Nigerian economy. Our young, tech-savvy population is powering growth in new sectors, and our reforms are unlocking the potential of industries that were previously underrepresented in our GDP figures.”
Edun stressed that the evolving structure reinforced the government’s strategy of investing in productivity, infrastructure, digital innovation, and human capital to drive future growth and job creation.
He highlighted the 3.13 per cent year-on-year GDP growth recorded in Q1 2025, an improvement over the 2.4 per cent recorded in Q1 2024, saying it provides further evidence that the economy is gaining strength under the Renewed Hope Agenda.
Edun said, “We are encouraged by the broad-based nature of this growth, which is occurring across key sectors and supported by stable macroeconomic reforms. This trajectory reinforces our belief that Nigeria is on the path to rapid, sustained, and inclusive growth.”
With continued implementation of structural reforms, fiscal discipline, and targeted investments in critical sectors, the minister reaffirmed the government’s medium-term ambition of achieving a seven per cent annual GDP growth rate, in line with national development priorities.
He said, “Our goal is not just growth, but growth with impact, especially the creation of quality jobs. The new data helps us better track progress, refine our strategies, and ensure that economic expansion translates into more jobs, higher incomes, and better living standards for all Nigerians.”
