The Federal Inland Revenue Service has achieved a record-breaking tax collection of N47.39tn between October 2023 and September 2025, The PUNCH reports.

This period is under the current leadership of the FIRS Chairman, Zacch Adedeji.

President Bola Tinubu had approved the appointment of the tax chair on September 14, 2023.

The tax agency exceeded its revenue target by 15 per cent, according to new performance figures obtained by our correspondent on Sunday.

The data show that the service recorded sustained growth in both oil and non-oil revenue sources, reflecting the impact of ongoing tax reforms and modernisation initiatives.

The N47.39tn collection represents a sharp jump from N21.97tn recorded between October 2021 and September 2023, underscoring a 115 per cent performance against target.

Within the period, non-import VAT exceeded its target by 137 per cent, while import VAT hit 131 per cent, signalling stronger compliance among registered businesses via enhanced digital monitoring and stricter enforcement of tax remittances across key sectors.

The document read, “In the last two years (October 2023 to Sept 2025), FIRS achieved significant revenue improvements in mobilisation.

It achieved a record-breaking revenue growth of N47.39tn, representing 115 per cent of the target. Non-oil revenue accounted for 76 per cent of total collections, reflecting diversification and reform success.”

From January to September 2025 alone, the FIRS collected N22.59tn, equivalent to 120 per cent of its revenue target and about 90 per cent of the annual target of N25.2tn.

From this amount, oil tax receipts amounted to N5.29tn, reflecting 98 per cent of the target for the period. Despite lingering challenges in the upstream oil sector, the figure signals improved compliance and recovery in petroleum profit and hydrocarbon taxes.

In contrast, non-oil taxes surged to N17.3tn, surpassing projections by 128 per cent and accounting for 76 per cent of total revenue collected within the review period.

Between January and September 2025, the Service recorded a total collection of N22.59tn, representing 120 per cent of the target for the period and about 90 per cent of the annual target.

“Of this amount, oil tax revenue stood at N5.29tn, achieving 98 per cent of the target, while non-oil taxes contributed N17.3tn, representing 128 per cent of the target and accounting for 76 per cent of the total collection,” it added.

The revenue performance was driven largely by Company Income Tax (non-oil), which contributed 32.6 per cent of total receipts, followed by non-import VAT (23.2 per cent) and Petroleum Profit Tax/Hydrocarbon Tax (17.4 per cent).

Other key contributors included Company Income Tax (upstream activities) at 7.1 per cent, import VAT (7.03 per cent), education tax (6.1 per cent), and gas income (2.3 per cent).

Levies such as electronic money transfer, capital gains, and stamp duties made up smaller proportions.

The FIRS attributed the revenue surge to its sustained reform drive under the leadership of its current management team, including the deployment of digital platforms such as the National Single Window, the National E-Invoicing System, and improved stakeholder integration.

The agency also credited the enactment of new tax reform laws in 2025, which simplified compliance procedures, closed administrative loopholes, and aligned Nigeria’s tax regime with global best practices.

If the pace is sustained, projected revenue by December 2025 could reach or even exceed the FIRS internal target of N25.2tn, which is 37.6 per cent higher than the figure captured in the national budget.

Such performance could provide the Federal Government with fiscal flexibility to fund infrastructure, reduce borrowing, and possibly clear arrears, though actual revenue utilisation and cash inflows remain subject to macroeconomic conditions and oil market volatility.

But the FIRS chairman, in a briefing, stated that the government will continue to borrow despite its significant revenue inflows in recent months.

He argued that borrowing is not a sign of weakness but part of the country’s broader economic strategy.

“Borrowing is not a problem…is borrowing not part of the budget we submitted to the National Assembly. Was it not approved? Are we borrowing aside what was approved?”

Adedeji told State House Correspondents during last month’s session of the Meet-the-Press series organised by the Presidential Communications Team at the Aso Villa, Abuja.

He described the move as an integral component of Nigeria’s financial ecosystem and overall economic plan, stressing that the government’s approach is designed to balance revenue performance with long-term development objectives: “What is the component of a country’s budget? You have your expenditure, revenue, and loan in all budgets. So, if my expenditure for this year is N100,000 and my plan is that N80,000 will be from my revenue, I will borrow N20,000. If I’ve done revenue of N90,000 and I’m borrowing N10,000 according to what I have in my budget, what is the problem with that?”