Leadnaija
The Federal Government generated ₦6.9 trillion in revenue in the first quarter of 2025, representing a 40 percent increase from the ₦5.2 trillion recorded in the previous quarter.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Monday during the Q2 2025 Citizens and Stakeholders’ Engagement Session held in Abuja.
Edun attributed the revenue growth to increased transparency, the adoption of technology in revenue collection, and a commitment to blocking leakages.
“In the first quarter of 2025, revenue stood just under ₦7 trillion—₦6.9 trillion, up from ₦5.2 trillion for the same period last year. That’s a 40% increase,” he said. “This improvement is due to reforms such as exchange rate adjustments, automation in revenue collection, and enforcement of remittance compliance through revenue assurance mechanisms.”
The Minister noted that with rising revenues, the federal government’s debt service-to-revenue ratio has significantly improved. “In Q1 2023, before President Tinubu assumed office, debt servicing accounted for 150 percent of government revenue. That figure has now dropped to about 60 percent,” Edun said.
He explained that this improvement was achieved by enforcing fiscal discipline and eliminating the government’s reliance on the Central Bank’s Ways and Means overdrafts.
“There’s no longer any resort to Ways and Means financing. By the end of 2024, the debt service-to-revenue ratio fell to 60 percent, and as revenues grow, the ratio is expected to decline further,” he added.
Edun emphasized the administration’s dedication to transparency in public finance, citing consistency in fiscal data across government institutions.
“If you check the Office of the Accountant-General’s website and compare it with the Budget Office, while the formats may differ, the figures align. Integrity in our fiscal data is crucial,” he said.
He also highlighted the improving investment climate, pointing to renewed investor confidence. “Last week, Shell confirmed its commitment to invest $5.5 billion in Nigeria’s oil sector. Contrary to claims of divestment, major firms are investing more due to the stabilized environment,” he said.
The minister said the government is now entering a third phase of reforms aimed at stimulating investments in agriculture, manufacturing, and services to create jobs and reduce poverty.
“We’re on the right track. GDP growth is trending upward, but 3.4 or 3.8 percent is not the goal. The target is a sustained 7% GDP growth rate—enough to exceed population growth and lift millions out of poverty,” Edun said.
He also stressed the need to bring inflation under control, affirming that the administration is making steady progress.
On the external front, Edun noted a significant boost in foreign reserves, which rose from a low of about $3 billion to over $23 billion.
He further revealed that overall federal revenue grew from ₦12.5 trillion in 2023 to nearly ₦21 trillion in 2024, adding that the upward trend has continued into the first four months of 2025.
