Good News As Nigeria's Revenue Hits N6.9 Trillion In Four Months After FG Plugged Leakages

• The Nigerian government has faced multiple problems with its revenue, especially due to the low crude oil production levels
• However, there might be some hope as the revenues have grown to N6.9 trillion in four months following some process automation
• The federal government also has a plan to increase revenues further in the coming months, the Minister of Finance has explained

Ruth Okwumbu-Imafidon, a Legit.ng journalist, has over a decade of experience in business reporting across digital and mainstream media.

The Nigerian government has reported a total revenue of N6.9 trillion for the first four months of 2025.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this at the citizens and stakeholders' engagement session in Abuja.

This represents a significant increase of approximately 33% from the N5.2 trillion reported in Q1, 2024, and indicates major reforms.

The Minister stated that the growth is due to several reforms, particularly the deployment of technology and automation across Ministries, Departments, and Agencies (MDAs) to improve fiscal governance and plug revenue leakages.

Recall that the government launched a new revenue collection system, dropping Remita after more than a decade.

FG projects more growth amid fiscal reforms

Already, the federal government has moved from an annual revenue of N12.5 trillion in 2023 to over N20 trillion in 2024.

Edun also expressed optimism that the revenue would grow even more in the coming months as the ministry ensures that all government revenues come in as expected.

Meanwhile, the Senate Committee on Customs has proposed to increase the revenue target for the Nigeria Customs Service (NCS) from N6.584 trillion to N10 trillion.

This follows the impressive performance of the agency in 2024, where they surpassed their revenue target by 8%.

Nigeria improves debt service-to-revenue ratio

Alongside the revenue growth, Nigeria has also seen an improved debt service to revenue ratio under President Bola Tinubu, according to This Day news.

The finance minister noted that the ratio for the full year 2024 was 60%, a major improvement from the 150% reported in Q1 2023 under former President Muhammadu Buhari, when debt servicing was way higher than the generated revenue.

Edun noted that Nigeria had yet to attain the expected performance in oil production and revenue, but efforts have been made to improve the situation.

Note that Nigeria’s oil revenue is still below projections due to global price fluctuations and underproduction.

The finance minister added that the government also plans to increase domestic production in a bid to reduce the export of raw materials.

This would boost Nigeria’s FX earnings, strengthen the naira, and reduce multidimensional poverty by creating more sustainable job opportunities and improving economic growth.

Edun noted that several macroeconomic indicators are on track, and the government's economic plan to attract more investment in production is expected to yield the desired results.

Debt servicing outpaces revenue, causing concerns

In related news, Legit.ng reported that the federal government generated insufficient revenue in January 2025 to cover its debt servicing.

According to the Monthly Economic Report released by the Central Bank of Nigeria (CBN), Nigeria had a retained revenue of N483.47 billion for the month, while debt servicing gulped a whopping N696.27 billion.

This shows a debt servicing-to-revenue ratio of about 144%, and indicates a major concern about the government's mounting debt.

Source: Legit.ng