The federal government has announced that Nigeria’s total tax revenue for the first half of 2025 rose to N14.27 trillion, showing a big jump of 43 per cent from the N9.98 trillion collected in the same period of 2024. This figure surpasses the government’s growth target of 16.4 per cent, marking strong performance in revenue collection.
According to a report released by the presidency, non-oil tax revenue played a major role in the increase. Non-oil taxes rose by 44.2 per cent, amounting to N10.64 trillion by the end of June 2025. This compares to N7.37 trillion collected in the same period last year.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the growth shows that the Nigerian economy is strong and bouncing back. He also noted that Nigeria’s rebased Gross Domestic Product (GDP) figures and the 3.13 per cent GDP growth in the first quarter of 2025 are signs of progress under the current economic reforms.
Mr. Edun made these comments in Abuja after the National Bureau of Statistics (NBS) released the rebased GDP data and new economic growth numbers. He praised the NBS for using international best practices to calculate the figures.
However, not everyone is excited about the numbers. Economists and private sector experts say that even though the GDP now stands at $243.5 billion, Nigeria is still behind other African countries like South Africa ($410.3 billion), Egypt ($347.3 billion), and Algeria ($268.9 billion). Many say the government’s target of a $1 trillion economy by 2030 is becoming more difficult to achieve.
Oil tax revenue also grew by 39.4 per cent in the first six months of 2025. The government collected N3.63 trillion from oil taxes, compared to N2.60 trillion in the same period last year.
The federal government believes the improvements are due to new strategies by the Federal Inland Revenue Service (FIRS), including better tax enforcement, improved compliance, and diversification of revenue sources.
Mr. Edun said that the new GDP numbers better reflect Nigeria’s real economy, especially the rise in digital and service industries, as well as improvements in non-oil sectors. He said the updated figures will help policymakers design better strategies to improve the economy.
The rebased GDP now shows that services such as ICT, finance, entertainment, and professional services contribute more to the economy than before. Agriculture and manufacturing are still important, but oil and gas have dropped in their share of the GDP. The informal sector now contributes about 42.5 per cent, up from 41.4 per cent.
Experts, however, warn that while the numbers look good on paper, the reality for many Nigerians is still tough. Inflation remains high, especially in the food sector, and the rising cost of living continues to affect millions.
President of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa, said that although rebasing the GDP from the 2010 to 2019 base year is a step in the right direction, it should lead to action. He said the government must address inflation, poverty, and unemployment.
Mr. Idahosa called on the government to focus more on sectors that can bring inclusive and resilient growth, like power, infrastructure, and digital technology. He also urged them to follow the advice of the International Monetary Fund (IMF) to tighten monetary policy and protect the poor.
Economist Dr. Muda Yusuf, head of the Centre for the Promotion of Private Enterprise (CPPE), said that rebasing the GDP is helpful for planning, but it does not solve the major problems facing ordinary Nigerians. He said that while the country is getting closer to the $1 trillion economy goal, there is still a long way to go.
He added that the real estate sector has now become the third biggest contributor to Nigeria’s GDP, followed by improvements in water transport, which was previously underreported. The inclusion of activities from agencies like the Nigerian Ports Authority and the Nigerian Maritime Administration and Safety Agency in the GDP calculation also made a difference.
Also speaking, economist and Managing Director of Bristol Investments Limited, Dr. Chijioke Ekechukwu, said the rebasing shows the hard work still needed in sectors like agriculture and industry. He said Nigeria must improve productivity and create jobs if the economy is to grow meaningfully.
Managing Director of SD&D Capital Management Limited, Mr. Idakolo Gbolade, added that while the new GDP figures may boost investor confidence, they do not automatically improve living conditions. He warned that the increased GDP might lead to more taxes and higher costs for Nigerians if not properly managed.
The Federal Government is hopeful that the current momentum will continue, but many Nigerians are calling for policies that truly affect lives positively — not just numbers that look good on paper.
