Nigeria’s Tax Haul Soars on Non-Oil Strength, Dwarfing Budget by ₦1.36 Trillion

Abuja, Nigeria – Nigeria’s Federal Inland Revenue Service (FIRS) delivered a massive ₦3.3 trillion ($2.18 billion) in tax revenue for June 2025, blowing past its monthly target by a remarkable ₦1.36 trillion. The surge, detailed in figures prepared for the Federation Account Allocation Committee (FAAC) ahead of its July 16 meeting, signals a significant shift in the nation’s fiscal landscape.
The standout performer was Company Income Tax (Non-Oil), which contributed ₦1.65 trillion, nearly tripling its ₦592 billion budget. This segment alone accounted for over 50% of the total revenue surplus, underscoring robust growth in non-oil corporate earnings and potentially more effective compliance measures by the FIRS.
Other key areas also saw substantial gains:
Tax on Gas revenue hit ₦223.1 billion, exceeding its ₦56.7 billion budget by ₦166.5 billion.
Capital Gains Tax (CGT), typically a laggard, defied expectations with ₦292.9 billion, a staggering 59 times its ₦5 billion target.
Value Added Tax (VAT), combining non-import and import sources, collectively brought in ₦678.3 billion, slightly above projections.
However, the crucial Petroleum Profits Tax (PPT)/Hydrocarbon Tax from the oil sector underperformed, bringing in ₦356 billion against a budgeted ₦436.8 billion, missing by ₦80.8 billion. Similarly, Stamp Duties and Electronic Money Transfer Levies fell short of targets.
This strong performance comes at a critical juncture for Nigeria, which is battling fiscal pressures, volatile foreign exchange rates, and the ongoing impact of subsidy reforms. Adding to the potential fiscal cushion, the report also projects ₦2.2 trillion in expected receipts from the Nigerian National Petroleum Company Limited (NNPCL) under joint venture and production sharing contract arrangements from June 2023 to December 2024.
Bottom Line: The FIRS’s June figures highlight a pivotal moment in Nigeria’s revenue diversification efforts. Non-oil and capital gains taxes are increasingly compensating for underperformance in the petroleum sector. Sustaining this momentum, however, will hinge on the implementation of structural reforms and consistent policy enforcement.