The Federal Government, through the Federal Inland Revenue Service (FIRS), has recorded a significant leap in revenue collection, amassing N14.27 trillion in the first half of 2025. This represents a 43 per cent increase over the N9.98 trillion collected during the same period in 2024, according to a performance evaluation report obtained from the presidency.

The report reveals that the revenue figure surpasses the FIRS’s baseline growth target of 16.4 per cent and puts the service well on track to exceed its full-year target of N25.2 trillion. A breakdown of the figures shows strong growth across both oil and non-oil tax segments, underscoring the impact of intensified compliance efforts and tax base expansion strategies.

Oil tax revenue rose to N3.63 trillion in the first half of the year, up from N2.60 trillion in 2024 — a 39.4 per cent increase. This improvement is attributed to better compliance within the oil sector and enhanced tracking of extractive industry earnings. However, non-oil tax receipts continued to dominate, rising sharply to N10.64 trillion from N7.37 trillion, marking a 44.2 per cent growth driven by enforcement actions and successful diversification initiatives.

Monthly data showed consistent upward trends, with revenue peaking in March and April when collections nearly doubled year-on-year. With N14.27 trillion already realised by June 30, the government has achieved 78 per cent of its annual revenue target, suggesting that it may surpass projections by year-end. If sustained, this revenue momentum could provide the Federal Government with greater fiscal space to invest in infrastructure, cut debt, and address arrears — although actual impact will depend on broader economic stability and oil market dynamics.