The Federal Government generated N6.9 trillion in revenue in the first quarter (Q1) of 2025, representing a 40 per cent increase compared to the N5.2 trillion recorded during the same period in 2024.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this disclosure on Monday during a citizens and stakeholders’ engagement session in Abuja. He attributed the revenue surge to ongoing economic reforms, particularly in foreign exchange policy, improved fiscal governance, and the automation of processes across Ministries, Departments, and Agencies (MDAs).
“We have moved from an annual revenue of about N12.5 trillion to over N20 trillion in 2024, and in just the first four months of 2025, we’ve already generated N6.9 trillion,” Edun stated. He assured that the government remains committed to plugging leakages and collecting all revenues due.
The minister acknowledged that some revenue-generating agencies and government-owned enterprises had delayed remittances due to ongoing audits and reconciliations. He noted that agencies required to remit 80 percent of their operating surpluses under the Fiscal Responsibility Act and the 2020 Finance Act often delay payments until audited results are finalized.
Edun also reported improved debt sustainability under President Bola Tinubu’s administration, with the debt service-to-revenue ratio dropping to 60 percent at the end of 2024 — significantly lower than the 150 percent recorded in Q1 2023 under the previous administration.
However, he admitted that oil revenues underperformed due to lower-than-expected production and global price volatility. “We’re not where we expected to be on oil output, and this has impacted short-term revenue and debt service funding,” he said.
Looking ahead, the minister expressed optimism about the economic outlook, citing industrialization and value-added exports as key drivers. He highlighted the impact of the 650,000 barrels-per-day Dangote Refinery and other modular refineries, which together bring domestic refining capacity to 1.2 million barrels per day, thereby reducing raw crude exports, creating jobs, and boosting foreign exchange earnings.
Edun also mentioned increased investor interest in Nigeria’s oil sector, pointing to Shell Development Company’s planned $5 billion investment in oil production, despite its ongoing divestment from onshore assets.
At the event, the Managing Director of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Ume Takang—represented by Alhaji Tajudeen Ahmed—disclosed that 20 portfolio companies under MOFI’s management had seen asset growth reach N38 trillion within two years, following reforms.
Meanwhile, the Senate Committee on Customs has directed the Nigeria Customs Service (NCS) to revise its 2025 revenue target upward from N6.584 trillion to N10 trillion. The directive was issued by Committee Chairman, Senator Isah Jibrin (Kogi East), during a budget defence session in Abuja.
The decision followed a presentation by NCS Deputy Comptroller General Jibo Bello, who revealed the agency had exceeded its 2024 revenue target of N5.079 trillion by over N1 trillion. The committee, impressed by this performance, approved the 2025 revenue projection and expenditure estimate of N1.132 trillion but urged the NCS to scale up its efforts.
Senator Jibrin also tasked the NCS with curbing smuggling and the influx of illicit drugs, linking them to rising insecurity and criminal activity. He stressed the need to limit imports to essential goods, encourage local production, and align customs operations with national economic objectives.
“If we consume what we produce, we’ll conserve foreign exchange, promote local industries, and create jobs,” Jibrin said.
The approved NCS budget will be presented before the Senate during plenary on Tuesday, following the Eid-el-Kabir recess.
