Federation account inflows rise to N23tn after fiscal reforms
In the first ten months of 2025, inflows into Nigeria's Federation Account soared to N23.06 trillion, according to the Revenue Mobilisation Allocation and Fiscal Commission. The commission’s chairman, Mohammed Shehu, attributed this growth to fiscal reforms, improved audits, and better coordination among revenue agencies. The announcement was made at a stakeholder event in Abuja on June 5, 2025. The new Nigeria Tax Act, set to take effect in 2026, aims to further streamline tax laws and boost revenue.
What we know
- Inflows into the Federation Account reached N23.06 trillion between January and October 2025, up from N21.43 trillion in 2024.
- Mohammed Shehu credited fiscal reforms, digital tracking, and stronger audits for the increase.
- The Nigeria Tax Act, 2025, will harmonise tax laws, reduce compliance burdens, and take effect on January 1, 2026.
- Inflation dropped from 21.88% in July to 16.05% in October 2025, while the naira strengthened against the dollar.
- The reforms aim to reduce oil dependence, broaden the tax base, and exempt low-income earners from personal income tax starting 2026.
