The Federal Government earned about N21.22 trillion from five key revenue-generating agencies in the first half of 2025, highlighting stronger tax collection, oil royalties, and customs duties.
Despite the significant inflow, the government has continued to seek foreign loans and grants to fund budget deficits and infrastructure projects. Economists warn that this borrowing could exacerbate Nigeria’s debt burden.
Financial reports submitted to the Federation Accounts Allocation Committee (FAAC) show that the Federal Inland Revenue Service (FIRS) led collections with N13.76 trillion, followed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) at N5.21 trillion, and the Nigeria Customs Service (NCS) contributing N2.02 trillion. The Ministry of Mines and Steel Development and the Nigerian National Petroleum Company Limited (NNPC) added N32.39 billion and N197.8 billion, respectively, although the NNPC reported N6.96 trillion in statutory remittances to FAAC during the same period.
The combined earnings represent 58 percent of the government’s 2025 revenue projection of N36.35 trillion and 42.23 percent of targets for FIRS, NUPRC, and NCS. Analysts say the government is on track to meet or surpass its fiscal targets if revenue momentum continues.
However, Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, a 22.8 percent increase from N121.67 trillion in 2024. External debt exposure, particularly to the World Bank, rose to $18.23 billion, accounting for nearly 40 percent of the country’s total external debt stock. Loans from the World Bank’s International Development Association increased from $16.56 billion in December 2024 to $16.99 billion in March 2025, while borrowing from the International Bank for Reconstruction and Development remained at $1.24 billion.
The administration’s approved borrowing plans could add roughly N38.24 trillion ($24.14 billion) to the debt stock by 2026, including loans in dollars, euros, and Japanese yen. Nigeria also anticipates approval of additional World Bank loans and grants totaling $1.25 billion in IDA financing and $10.5 million in grants, which may raise total commitments to $9.65 billion between June 2023 and December 2025.
The government’s borrowing strategy underscores a reliance on external financing, even as domestic revenue generation shows marked improvement under the 2025 fiscal framework, which targets increased tax, oil, and customs receipts based on a crude oil benchmark of $75 per barrel and a daily production target of 2.06 million barrels.
