Nigeria’s revenue collection surged by an unprecedented 411% in just 16 months, rising from ₦711 billion in May 2023 to ₦3.64 trillion in September 2025. But even as the country celebrates this leap, borrowing continues to play a central role in its fiscal strategy.

Revenue Growth by Source

Revenue vs Borrowing

Despite record-breaking revenues, Nigeria’s borrowing remains a core part of its budget. Officials argue this borrowing is strategic, financing infrastructure and helping to stabilise future costs.

What It Means

Higher collections: VAT and non-oil taxes are now bigger contributors than ever before.
Borrowing remains: Nigeria still relies on loans to match spending with development needs.
Future outlook: Tax reforms aim to fund growth internally, but success depends on sustaining compliance and technology adoption.

Source: Nigerian Revenue Service briefing, September 2025.