FG Revenue Rises by 40% to N6.9tn in Four Months as Economic Reforms Take Hold

The Federal Government’s revenue rose significantly to N6.9 trillion between January and April 2025, marking a 40 percent increase from the N5.2 trillion recorded in the same period of 2024.

This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the Second Quarter 2025 Citizens and Stakeholders’ Engagement Session on fiscal performance and reform outlook held in Abuja.

Edun attributed the sharp rise in revenue to President Bola Tinubu’s reform policies, which included the liberalisation of the foreign exchange market, strict fiscal management, and the deployment of technology to curb leakages across Ministries, Departments, and Agencies (MDAs).

“In the first four months of this year, we have seen a substantial increase in revenue. By the end of April, about N6.9 trillion was generated, and the effort continues,” he stated.

The minister noted that the reforms had dismantled arbitrage in the forex market, significantly narrowing the gap between the official and black market rates. According to him, this development has eliminated a major disincentive to investment and discouraged rent-seeking behaviour that previously allowed individuals to profit by obtaining forex at official rates and reselling on the black market.

“With the monetary policy of the Central Bank and its market-based pricing of the naira, we have essentially eliminated the black market. The huge premium that previously incentivised unproductive activity is gone,” Edun said.

He explained that the reform journey has unfolded in three phases: the removal of pricing distortions in petrol and forex, macroeconomic stabilisation, and a current focus on inclusive, sustained growth. Edun highlighted recent major investment commitments, including a $5.5 billion oil deal by Shell, as evidence of renewed investor confidence in the Nigerian economy.

The minister also revealed that Nigeria’s external reserves had grown from about $3 billion to over $23 billion in less than two years. Annual revenue, he said, jumped from N12.5 trillion in 2023 to over N20 trillion in 2024, and the positive trend has continued in 2025.

“In 2024, we experienced a significant rise in revenue, from just above N12 trillion to virtually N21 trillion, thanks to our adoption of technology, blocking loopholes, and stemming leakages,” Edun said.

He also reported notable improvements in Nigeria’s debt sustainability, with the debt service-to-revenue ratio dropping from 150 percent in Q1 2023 to about 60 percent by the end of 2024. This progress was made possible by rising revenues and the government’s decision to stop excessive borrowing through Ways and Means advances from the Central Bank. All borrowings are now being made within regulated limits, helping to restore investor confidence and fiscal responsibility.

Edun mentioned that Nigeria’s sovereign credit ratings had been upgraded by international rating agencies such as Fitch and Moody’s, which has helped lower the cost of borrowing locally and internationally, while also supporting inflation management and economic stability.

While acknowledging that oil revenues were still below expectations due to production challenges and global price fluctuations, he said structural reforms were underway. These include the development of domestic refining capacity, which now stands at 1.2 million barrels per day, led by the Dangote Refinery and several modular refineries. These efforts aim to reduce dependence on crude exports, boost value-added production, generate foreign exchange earnings, and create jobs.

The minister emphasized that the reforms were not only macroeconomic in nature but also targeted at improving the welfare of ordinary Nigerians. He revealed that grants and low-interest loans had been provided to small businesses, while new mortgage products with interest rates below 10 percent for up to 25 years are now available through the Ministry of Finance Incorporated in partnership with pension funds and development institutions.

He added that 37 million Nigerians now have access to revitalised primary healthcare centres, while 400,000 young people, including NYSC members, are being reached through a consumer credit programme, offering loan packages between N200,000 and N300,000.

There has also been a 40 percent increase in electricity generation, according to Edun, with ongoing reforms in the power sector including the introduction of Band A tariffs and a nationwide metering initiative. He noted Nigeria’s commitment to renewable energy and participation in the Mission 300 initiative with the World Bank and African Development Bank, which seeks to provide electricity to 300 million Africans by 2030.

Speaking on behalf of the Managing Director of the Ministry of Finance Incorporated (MoFI), Executive Director Tajudeen Ahmed disclosed that the government had identified N38 trillion worth of publicly owned assets so far and expected the figure to rise to N70 trillion by 2026. He said MoFI aims to scale the total value of public assets to N100 trillion within the next decade, a move that is expected to drive investment, transparency, and long-term fiscal sustainability.