The Federal Government’s revenue grew significantly by 76%, reaching ₦12.5 trillion in 2023, compared to ₦7.1 trillion in 2022, according to the Ministry of Budget and Economic Planning.
This increase is credited to higher tax collections and a sharp rise in oil revenue.
The 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper revealed that oil revenue jumped by 200%, from ₦0.8 trillion in 2022 to ₦2.4 trillion in 2023, contributing 19.2% to total revenue. This growth is linked to improved 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.
Non-oil revenue, which accounted for 80.8% of total earnings, increased by 57.8%, reaching ₦10.1 trillion in 2023, compared to ₦6.4 trillion in 2022.
Gross oil and gas revenue for 2023 was ₦7.87 trillion, achieving 83.9% of the ₦9.38 trillion projection. After deductions, the net revenue to the Federation Account stood at ₦4.93 trillion, slightly exceeding the target by 6.6%.
For non-oil taxes, the government surpassed its budgeted revenue. Gross non-oil tax collections reached ₦9.89 trillion, 31.2% above the projected ₦7.53 trillion. Corporate Income Tax brought in ₦4.27 trillion, exceeding the target by 103.9%, while Value-Added Tax collections amounted to ₦3.64 trillion, surpassing expectations by 23.2%. Customs generated ₦1.98 trillion, achieving 79.6% of its target.
A statement from the budget office noted: “The government is seeing positive outcomes from diverse reforms and expects sustained revenue growth to fund programmes and projects under the Renewed Hope Agenda.”
Other revenue sources included independent revenues (₦1.84 trillion), Education Tax (₦719.44 billion), a Signature Bonus (₦256.99 billion), and ₦2.19 trillion retained by Government-Owned Enterprises.
The report also highlighted Nigeria’s progress in tax reforms, with the Presidential Tax Reform Committee pushing for a higher tax-to-GDP ratio. “The progress being recorded in the tax system is already being noticed, with the 2023 Tax Transparency in Africa Report highlighting that Nigeria is making progress in the development of its Exchange of Information strategy aimed at curbing tax evasion,” the office stated.
