Although overall revenue increased by 76%, oil revenue, which accounted for 19.2% of total revenue, increased by an astounding 200 percent, from N0.8 trillion in 2022 to N2.4 trillion in 2023.The Federal Government’s earnings increased by 76% from N7.1 trillion in 2022 to N12.5 trillion in 2023 due to an increase in taxes and oil revenues.
Revenue From Oil And Taxes Increases By 76% To N12.5tn — Budget Office
This development was disclosed in the recently published 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, which our correspondent was able to obtain from the Ministry of Budget and Economic Planning.The budget office reports that although overall revenue increased by 76%, oil revenue increased by a staggering 200%, from N0.8 trillion in 2022 to N2.4 trillion in 2023, accounting for 19.2% of total revenue.
Higher crude oil production, which rose from an average of 1.31 million barrels per day in 2022 to 1.41 million barrels per day in 2023, is primarily responsible for the impressive increase in oil revenue.Non-oil revenue increased by 57.8% from N6.4 trillion in 2022 to N10.1 trillion in 2023, making up 80.8% of total revenue.
A performance of 83.9% was achieved in 2023 when the actual gross oil and gas revenue was N7.87 trillion as opposed to the projected N9.38 trillion.N4.93 trillion was the net oil and gas revenue that went into the Federation Account after deductions were made. This is N306.0 billion, about 6.6% above the target.
In 2023, when actual gross oil and gas revenue was N7.87 trillion instead of the projected N9.38 trillion, an 83.9% performance was attained.After deductions, the net oil and gas revenue that entered the Federation Account was N4.93 trillion. This amounts to approximately 6.6% more than the target, or N306.0 billion. The respective performances are 103.9% and 23.2% above the target. N1.98 trillion was collected in customs, which is 79.6% of the goal.FG’s revenue exceeded the budget by a considerable margin.
The actual revenue in 2023 was N12.84 trillion, which is a percentage over the budget, even though the budgeted amount was N11.05 trillion.Of this total revenue, N2.38 trillion (6.6% over the target) came from oil taxes, and N3.31 trillion (34.3%) came from non-oil taxes.CIT and VAT contributed N1.92 trillion and N476.11 billion, respectively, to FGN’s non-oil tax revenue, which was 106.1% and 24.3% more than what was budgeted.
The total amount collected by the Nigerian Customs Service was N889.27 billion, which included N107.47 billion from Special Levies and N781.80 billion from import duties, excise, and fees. N23.65 billion was FG’s portion of the Electronic Money Transfer Levy.N1.84 trillion in independent revenue, N159 billion taken out of Special Accounts, N256.99 billion in Signature bonuses, and N719.44 billion in education tax are among the other funds received. Government Owned Enterprises (GOEs) kept N2.19 trillion in revenue, while Grants/Aid brought in N1.57 trillion.N719.44 billion in education tax, N256.99 billion in signature bonuses, and special accounts. Government Owned Enterprises (GOEs) kept N2.19 trillion in revenue, while Grants/Aid brought in N1.57 trillion.
“As the positive effects of the diverse reforms begin to yield the desired results, it is anticipated that there will be more and sustainable revenue streams,” the budget office stated.Thus, the government will be able to fulfil its financial commitments and carry out the projects and programs outlined in the current administration’s Renewed Hope Agenda.Even though non-oil revenue has increased, Nigeria’s tax-to-GDP ratio is still low when compared to countries with comparable economic potential.
“If the Presidential tax reform committee’s recommendations are fully implemented, this narrative may change.”Nigeria is making strides in the development of its Exchange of Information (EOI) strategy, which aims to reduce tax evasion through transparency among the 33 member countries, according to the 2023 Tax Transparency in Africa Report, demonstrating the progress being made in the tax system.
