Nigeria’s Non-Oil Revenue increases by 40.5 percent

Nigeria’s non-oil revenue has seen a significant boost, increasing by 40.5% to 20.59 trillion between January and August 2025. This substantial growth marks a major shift in the country’s fiscal structure, with the non-oil sector now accounting for approximately 75% of the federal government’s earnings during this period, amounting to $15.69 trillion out of N20.59 trillion.

Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, announced the figures on Wednesday, describing them as evidence of a “fundamental break from decades of oil dependence.”

The total collections represent a 40.5 percent increase from ₦14.6 trillion in the same period of 2024. According to Onanuga, the strong performance reflects ongoing fiscal reforms, expanded compliance, and the digitisation of tax administration.

President Tinubu, speaking earlier on Tuesday, said Nigeria had already surpassed its 2025 revenue target, crediting non-oil growth for stabilising the economy despite global headwinds.

He also noted that the government has stopped borrowing from domestic banks due to improved fiscal space.

For subnational governments, the boom has translated into record allocations. “In July 2025, for the first time in history, monthly transfers to states and local governments exceeded ₦2 trillion,” Onanuga said. This, he added, is expected to enhance spending on food security, infrastructure, and social services.

Still, the presidency admitted that revenues remain short of what is needed to meet the administration’s ambitions in education, health, and infrastructure. “The task ahead is ensuring that these gains translate into better schools, hospitals, roads, and jobs,” Onanuga said.

The budget office is expected to release the validated year-end figures later in 2025