FG Records N6.9tr Revenue in Q1 2025, Eyes Further Growth
By Patience Ikpeme
The Federal Government generated N6.9 trillion in revenue between January and April 2025, representing a 40 percent year-on-year increase compared to the N5.2 trillion collected during the same period in 2024.
This fiscal performance was disclosed on Monday by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a Q2 2025 Citizens and Stakeholders’ Engagement Session focused on the administration’s fiscal performance and reform outlook.
Mr Edun attributed the revenue growth to ongoing reforms, particularly in foreign exchange policy and fiscal governance, alongside the strategic deployment of technology and automation to streamline revenue collection processes across Ministries, Departments, and Agencies (MDAs).
The government anticipates further revenue increases as the year progresses, projecting a significant rise from the Federal Inland Revenue Service (FIRS) following the conclusion of tax return filings by the end of June.
“Through improved transparency, automation, and plugging revenue leakages, we’ve moved from an annual revenue of about N12.5 trillion to over N20 trillion in 2024,” Edun stated. He added that the administration remains committed to ensuring all revenues due to the Federation are collected and properly accounted for, utilizing robust revenue assurance mechanisms and stricter compliance monitoring.
Despite this positive trajectory, Edun noted that delays in revenue remittance by some government-owned enterprises continue to impede prompt inflows. These delays often stem from late auditing and reconciliation processes.
He explained that institutions mandated to remit up to 80 percent of their operating surpluses to the federal purse, under the Fiscal Responsibility Act and the 2020 Finance Act, frequently postpone remittances until audited figures are finalized. While this process, involving review by the Auditor-General and subsequent demand notes for reconciliation, creates a lag in cash inflow, the government is determined to secure eventual compliance without resorting to estimations.
Edun also reported improvements in Nigeria’s debt sustainability metrics. He pointed to a considerable reduction in the debt service-to-revenue ratio, which stood at 150 percent in the first quarter of 2023, meaning debt servicing expenditures surpassed total revenue. By the end of 2024, this ratio had decreased to approximately 60 percent, a change driven by rising revenue and enhanced fiscal discipline.
He further confirmed that the government has ceased the practice of excessive borrowing through Central Bank overdrafts (Ways and Means), aligning with fiscal responsibility legislation. “We now operate within regulated borrowing limits, which enhances debt sustainability,” Edun affirmed.
Acknowledging a persistent challenge, the Minister stated that oil revenue performance remains below target due to underwhelming crude oil production and global price volatility. “We’re not where we expected to be on oil output. Every effort is being made to raise production, but this has had an impact on short-term revenue projections and debt service funding,” he said.
Nevertheless, Edun expressed confidence in the long-term benefits derived from Nigeria’s renewed focus on value-added exports and industrialization. He cited the nation’s growing domestic refining capacity, spearheaded by the 650,000 barrels per day Dangote Refinery and other modular refineries, which collectively boast up to 1.2 million barrels per day in capacity. “This reduces raw exports, creates jobs, and boosts foreign exchange earnings by exporting refined petroleum products and supplying domestic industries with inputs,” he noted.
International rating agencies, including Fitch and Moody’s, have upgraded Nigeria’s credit ratings in response to these ongoing reforms. Edun explained that these upgrades send strong signals to global investors and lead to reduced borrowing costs on international markets. “Better sovereign ratings mean lower interest rates on bonds, both externally and locally, which supports inflation control and macroeconomic stability,” he commented.
The government’s consumer credit initiative is also gaining momentum. Mr. Uzoma Nwagba, Managing Director of CreditCorp, disclosed that 400,000 young people are currently being targeted under the initial phase of the scheme. He clarified that while an official launch is pending, eligible beneficiaries, including youth corps members, can already access credit via the platform, with loan packages ranging from N200,000 to N300,000 available to early applicants.
In a related development, the Ministry of Finance Incorporated (MoFI) is intensifying its efforts to optimize government assets. Representing Dr. Armstrong Takang, the MoFI Managing Director, Executive Director Tajudeen Ahmed reported that the asset register has identified N38 trillion worth of government-owned assets over the past two years. Ahmed projected that the total value of captured assets could reach N70 trillion by 2026, with an ambitious goal to scale this value to N100 trillion over the next decade, leveraging these assets to drive investment, transparency, and capital formation.
Edun concluded that the overarching objective is to build a fiscally resilient and inclusive economy, where government revenues are maximized, leakages are curtailed, and resources are strategically directed toward high-impact projects and social investments. He stated that despite persistent external risks, such as oil price volatility, the foundations established through macroeconomic reforms and institutional restructuring are already yielding measurable results.
