Federation account inflows reach N23tn as tax reforms boost revenue
In the first ten months of 2025, Nigeria’s Federation Account saw inflows rise to N23.06 trillion, according to the Revenue Mobilisation Allocation and Fiscal Commission. The commission’s chairman, Mohammed Shehu, attributed the increase to fiscal reforms and better coordination among revenue agencies. The new Nigeria Tax Act, 2025, set to take effect on January 1, 2026, aims to streamline tax laws and improve compliance. Stakeholders say these changes mark a pivotal moment for Nigeria’s public finances and economic growth.
TLDR
- Inflows into the Federation Account hit N23.06 trillion from January to October 2025, up from N21.43 trillion in 2024 and N11.93 trillion in 2023.
- Mohammed Shehu credits the surge to fiscal reforms, digital tracking, and stronger audits across revenue agencies.
- The Nigeria Tax Act, 2025, harmonises previous tax laws, reduces compliance burdens, and exempts low-income earners from personal income tax starting January 2026.
- Inflation dropped from 21.88% in July to 16.05% in October, while the naira strengthened against the dollar during the same period.
- Stakeholders, including Taiwo Oyedele and Jani Ibrahim, say the reforms will promote fairness, ease of doing business, and long-term fiscal sustainability.
