Nigeria’s Federal Inland Revenue Service (FIRS) has recorded a historic N47.39 trillion in tax revenue between October 2023 and September 2025, exceeding its target by 15 percent and marking a 115 percent increase over the previous two-year period.

The figures, released Monday, underscore the impact of sweeping digital reforms but also reignite debate over Nigeria’s rising debt burden.

Under the leadership of Chairman Zacch Adedeji—appointed by President Bola Tinubu in September 2023—the agency’s haul spans both oil and non-oil revenues, with non-oil sources accounting for 76 percent of the total. From January to September 2025 alone, FIRS collected N22.59 trillion, representing 120 percent of the period’s goal and 90 percent of the N25.2 trillion annual target.

Breakdown of the revenue shows:

• Company Income Tax (non-oil): 32.6%
• Non-import VAT: 23.2%
• Petroleum Profit Tax: 17.4%
• Oil taxes: N5.29 trillion (98% of target)
• Non-oil taxes: N17.3 trillion (128% of target)

Adedeji credited the surge to modernization efforts, including the National Single Window platform and the E-Invoicing System, as well as 2025 tax legislation that closed loopholes and simplified compliance.

Despite the record revenue, fiscal analysts note that Nigeria’s borrowing remains elevated, with national debt reaching N121 trillion last quarter. Adedeji defended the strategy, stating: “If expenditure is N100,000 and revenue N80,000, borrowing N20,000 is planned. Exceeding revenue doesn’t mean no loans.”

Critics, including the Socio-Economic Rights and Accountability Project (SERAP), argue that the continued reliance on borrowing reflects inefficiencies and call for greater transparency in how revenues are allocated—especially amid a national poverty rate hovering around 40 percent.