Rising taxes and increased oil revenues have significantly boosted the Federal Government’s earnings, with total revenue rising by 76% from N7.1 trillion in 2022 to N12.5 trillion in 2023. This surge was revealed 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, while overall revenue grew by 76%, oil revenue saw a remarkable 200% increase, jumping from N0.8 trillion in 2022 to N2.4 trillion in 2023. Oil now accounts for 19.2% of total revenue. The significant rise in oil revenue is largely attributed to an increase in crude oil production, which grew from an average of 1.31 million barrels per day (mbpd) in 2022 to 1.41 mbpd in 2023.
Non-oil revenue also showed impressive growth, rising by 57.8%, from N6.4 trillion in 2022 to N10.1 trillion in 2023, and now making up 80.8% of total revenue.
In 2023, the actual gross oil and gas revenue was N7.87 trillion, compared to a projected N9.38 trillion, achieving 83.9% of the target. After accounting for deductions, the net oil and gas revenue that accrued to the Federation Account was N4.93 trillion, exceeding the target by N306 billion (6.6%).
Non-oil revenue exceeded expectations both in gross and net terms. The budget had projected gross non-oil taxes of N7.53 trillion, but actual collections reached N9.89 trillion, reflecting a performance that was 31.2% above target. Corporate Income Tax (CIT) and Value-Added Tax (VAT) collections amounted to N4.27 trillion and N3.64 trillion, respectively, exceeding their targets by 103.9% and 23.2%. Customs collections totaled N1.98 trillion, reaching 79.6% of the target.
Overall, the Federal Government’s revenue performance in 2023 was strong, surpassing the budgeted N11.05 trillion, with actual collections hitting N12.84 trillion—an increase of approximately 16.2%. Oil revenue accounted for N2.38 trillion (6.6% above target), while non-oil tax revenue reached N3.31 trillion, 34.3% above target.
Key contributors to non-oil tax revenue included CIT (N1.92 trillion), VAT (N476.11 billion), and customs duties (N889.27 billion), with additional collections from special levies (N107.47 billion) and the Electronic Money Transfer Levy (N23.65 billion).
Other notable revenues included N1.84 trillion in independent revenues, N159 billion from Special Accounts, N256.99 billion in Signature bonuses, and N719.44 billion from the Education Tax. Additionally, N2.19 trillion was accrued as revenue from Government-Owned Enterprises (GOEs), while grants and aid amounted to N1.57 trillion.
