Nigeria generated a total of about N161.1 trillion in revenue over a 15-year period, as the country’s fiscal structure gradually shifted away from oil dependence toward a stronger tax-driven system, according to a recent report.
The analysis, which reviewed government earnings between 2010 and 2024, showed that oil and non-oil sources contributed almost equally to total revenue during the period. Oil-related income accounted for roughly half of the earnings, while non-oil revenues—largely driven by taxes—made up the remaining share.
However, the composition of government revenue has changed significantly in recent years. The report highlighted that oil’s contribution has steadily declined, falling to about one-quarter of total revenue by 2024. In contrast, tax revenues have surged, emerging as the dominant source of government income.
This shift has been largely attributed to sustained fiscal reforms, improved tax administration, and efforts to widen the non-oil revenue base. Over the last decade—and more notably in the past five years—authorities intensified measures to boost tax collection and reduce reliance on crude oil earnings.
Between 2022 and 2025, tax revenue witnessed a sharp increase, nearly tripling from just over N10 trillion to more than N28 trillion. Within that same period, total tax collections were estimated at about N62 trillion, with the non-oil sector contributing the bulk of the growth.
The report also noted that tax revenue growth remained strong in 2025, rising by about 30 percent, driven primarily by non-oil taxes which accounted for the vast majority of the increase in federally collected revenue.
Despite these gains, analysts cautioned that Nigeria’s revenue performance still faces structural challenges, especially when weighed against broader economic realities. Following the 2014 global oil price crash, the country experienced a sharp decline in income levels, with GDP per capita dropping significantly and millions more Nigerians falling into poverty in subsequent years.
Overall, the findings suggest that while Nigeria is making progress in diversifying its revenue sources, the transition to a tax-led fiscal system remains a work in progress, requiring sustained reforms to achieve long-term stability and inclusive growth.
