FG Announces 40% Rise in Revenue, but Falls Short of Target

• The Federal Government has announced a breakdown of the revenue generated in the first four months of 2025
• Although revenue increased by 40%, it still fell short of the target for the period, raising the possibility of additional borrowing
• On a positive note, Nigeria’s debt service-to-revenue ratio dropped from 150% in early 2023 to around 60% by the end of 2024

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has revealed that the federal government generated N6.9 trillion in revenue between January and April 2025.

The amount is a 40% increase from the N5.2 trillion recorded during the same period in 2024.

However, the revenue fell short of the projected target of N10 trillion on a pro-rata basis, representing a 31% shortfall.

FG revenue rises

Speaking during a second-quarter citizens’ engagement forum in Abuja, Edun attributed the revenue surge to President Bola Tinubu’s sweeping reforms, including liberalisation of the foreign exchange market and the use of technology to block leakages across ministries and agencies.

He said the reforms had effectively dismantled the black market premium on the naira, boosting confidence and eliminating arbitrage that previously encouraged rent-seeking behaviour, Punch reports.

The minister said:

“With the monetary policy followed by the central bank and its market-based foreign exchange pricing, we do have essentially the elimination of the black market.

“There’s always going to be some slight difference between the two rates because one, you provide paperwork, another one, maybe you provide less paperwork, and you might even want to pay a premium for the convenience.

“But the point is that a huge premium that was a disincentive to investment but yet encouraged unproductive activity has gone.

"No more can anybody, a businessman, a market woman, anybody with access, no longer can they wake up and say, my quickest route to money is to get allocation of foreign exchange at the official rate and fling it immediately in the free market at a huge profit.”

Breakdown of Nigerian economic performance

Wale added that the government had recorded a leap in annual revenue from N12.5 trillion in 2023 to over N20 trillion in 2024, with the positive trend continuing in 2025, BusinessDay reports.

He said:

“On the fiscal side as well, with the effort to apply technology, block loopholes, stem leakages, we have had in 2024 a huge increase in revenue from just above 12% N12.5 trillion to N20 trillion, virtually N21 trilion"

Nigeria repays Chinese, Indian, other loans, amount surfaces

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has said that Nigeria serviced external debts with $2.01 billion in the first four months of 2025

According to CBN data, Nigeria’s external debt service hit its peak in March with $632.36 million, the highest in the year.

Also, the country experienced a significant improvement in diaspora remittances during the review period.

Source: Legit.ng