Abuja, Nigeria — The Nigerian government’s revenue jumped by a remarkable 76 percent in 2023, reaching N12.5 trillion, up from N7.1 trillion in 2022, thanks to robust tax collections and a surge in oil revenues. The growth was highlighted in the Ministry of Budget and Economic Planning’s newly released 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper.
The significant revenue increase was largely fueled by a 200 percent rise in oil revenue, which grew from N0.8 trillion in 2022 to N2.4 trillion in 2023, accounting for 19.2 percent of total revenue. The boost in oil earnings was primarily driven by higher production, with Nigeria’s oil output increasing from 1.31 million barrels per day (bpd) in 2022 to 1.41 million bpd in 2023.
Surge in Non-Oil Revenue
Non-oil revenue also saw a substantial increase, growing by 57.8 percent from N6.4 trillion in 2022 to N10.1 trillion in 2023, contributing 80.8 percent of total revenue. Despite a shortfall in oil and gas revenue collections, which totaled N7.87 trillion (below the N9.38 trillion target), the government’s share after deductions stood at N4.93 trillion, surpassing expectations by N306 billion.
The increase in non-oil revenue was driven by a strong performance in tax collections. Corporate Income Tax (CIT) brought in N4.27 trillion, while Value-Added Tax (VAT) reached N3.64 trillion, both exceeding their targets. Customs revenue, although slightly below target, still performed well, collecting N1.98 trillion, or 79.6 percent of its goal.
Other Revenue Streams
In addition to taxes, the government collected various other revenues, including:
- Independent revenues: N1.84 trillion
- Special Accounts: N159 billion
- Signature bonuses: N256.99 billion
- Education Tax: N719.44 billion
- Revenue from government-owned enterprises: N2.19 trillion
- Grants and aid: N1.57 trillion
Outlook for Sustainable Revenue Growth
The budget office has expressed optimism that the increase in revenue will help the government meet its fiscal obligations and support the implementation of key programmes outlined in the Renewed Hope Agenda of the current administration.
The Ministry of Budget and Economic Planning noted that while the rise in non-oil revenue has improved Nigeria’s tax-to-GDP ratio, the country still lags behind nations with similar economic profiles. The government expects this gap to close with the full implementation of recommendations from the Presidential Tax Reform Committee, which aims to enhance tax efficiency and broaden the revenue base.
“This growth in revenue is expected to be sustainable, driven by continued reforms, and will help Nigeria fulfill its fiscal responsibilities while financing national development initiatives,” the Ministry stated.
The sharp increase in both oil and non-oil revenues in 2023 marks a positive trajectory for Nigeria’s economic recovery, positioning the government to potentially meet its ambitious fiscal and development goals in the years ahead.