…revenue reforms have improved fiscal discipline and expanded the pool of funds available for distribution to the federal, state, and local governments,
ABUJA, NIGERIA- The iNews Times | The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has revealed that Nigeria’s federation accounts recorded total inflows of ₦56.42 trillion over the last three years.
According to the commission, gross accruals into the account stood at ₦11.93 trillion in 2023 and ₦21.43 trillion in 2024, while inflows for the first 10 months of 2025, from January to October, amounted to ₦23.06 trillion.
Speaking at a two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025 in Abuja, RMAFC Chairman, Dr. Mohammed Shehu, attributed the steady rise in revenues to fiscal reforms, improved revenue tracking and coordination among agencies, stronger audits, digital monitoring, and other policy measures.
He said the revenue reforms have improved fiscal discipline and expanded the pool of funds available for distribution to the federal, state, and local governments, adding that the trend signals progress towards a more resilient, diversified, and sustainable public finance system with reduced reliance on oil revenue.
Dr. Shehu noted that Nigeria’s economy has long been vulnerable to boom-and-bust cycles driven by fluctuations in global oil prices, resulting in unstable revenue flows that hinder long-term planning and fiscal stability. He added that high debt servicing costs have further strained government finances, limiting public investment and posing risks to fiscal sustainability across all levels of government.
Against this backdrop, he described the stakeholders’ discourse as both timely and essential, noting that the Nigeria Tax Act, 2025, has unified previously fragmented tax laws into a single framework, eliminated duplication and outdated provisions, and improved the ease of doing business. He said the Act, scheduled to take effect in January 2026, will ease compliance, create a more predictable fiscal environment, and remove regional disparities in tax administration.
In his words, the legislation underscores the government’s commitment to building a fair, efficient, and sustainable revenue system and serves as a call to action for the commission and other stakeholders.
Dr. Shehu added that convening the forum was aimed at fostering broad stakeholder engagement, including organised labour, to ensure a shared understanding of the Act and its implementation.
Earlier, the Chairman of the Fiscal Efficiency and Budget Committee, Desmond Akawor, described the Nigeria Tax Act as a landmark reform designed to modernise tax administration, strengthen compliance, curb revenue leakages, and broaden the revenue base at all levels of government. He stressed that achieving these goals would require active collaboration among stakeholders in government, the private sector, civil society, and development partners.
In his presentation, the Chairman of the Tax Reform Committee, Professor Taiwo Oyedele, called for the consolidation of more than 60 existing taxes and levies into a single operational framework, arguing that effective collection of a few taxes is preferable to poorly administering many. He said the proliferation of taxes fuels corruption, noting that under the new Act, basic consumer goods will be exempt from taxation, while investors will not be subject to capital gains tax.
