The Federal Government’s revenue surged by 76% in 2023, rising from N7.1 trillion in 2022 to N12.5 trillion, fueled by significant increases in taxes and oil earnings. This development was disclosed in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper obtained from the Ministry of Budget and Economic Planning.
According to the Budget Office, oil revenue witnessed an impressive 200% growth, climbing from N0.8 trillion in 2022 to N2.4 trillion in 2023, contributing 19.2% to total revenue. The surge was driven by increased crude oil production, which averaged 1.41 million barrels per day (mbpd) in 2023, compared to 1.31 mbpd in the previous year.
Non-oil revenue also saw significant growth, increasing by 57.8% from N6.4 trillion in 2022 to N10.1 trillion in 2023, contributing 80.8% to total revenue. Corporate Income Tax (CIT) and Value-Added Tax (VAT) collections exceeded projections, reaching N4.27 trillion and N3.64 trillion, respectively. Customs collections totaled N1.98 trillion, achieving 79.6% of the target.
The government reported a notable performance in overall revenue collection. While the 2023 budget projected N11.05 trillion in revenue, the actual revenue reached N12.84 trillion, surpassing the target by 16.2%.
The Budget Office highlighted other significant contributions, including independent revenues of N1.84 trillion, Education Tax of N719.44 billion, and N2.19 trillion from Government-Owned Enterprises (GOEs). Grants and aid accounted for N1.57 trillion, while the Signature Bonus and Special Levies added N256.99 billion and N107.47 billion, respectively.
Reflecting on these achievements, the Budget Office noted:
“The expectation is for increased and sustainable revenue streams as the positive effects of diverse reforms begin to yield results. The government will therefore be able to meet its fiscal obligations and implement programs articulated in the Renewed Hope Agenda of the current administration.”
However, it acknowledged that despite the progress, Nigeria’s tax-to-GDP ratio remains low compared to nations with similar economic potential. The ongoing implementation of recommendations by the Presidential Tax Reform Committee is expected to address this disparity.
The 2023 Tax Transparency in Africa Report also recognized Nigeria’s efforts in developing an Exchange of Information (EOI) strategy to enhance transparency and curb tax evasion among its African peers.
