Lucky Obukohwo, Reporting
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has revealed that Nigeria’s federation accounts have amassed N56.42 trillion over the past three years.
It said that the total gross accruals into the account in 2023 and 2024 were N11,930,865,030,521.50 and N21,432,592,362,620.70 respectively, whereas the 10 months accruals into the same account from January to October 2025 was N23,058,248,707,725.50
Speaking at the two-day National Stakeholders’ Discourse on Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025, in Abuja, Chairman of the Revenue Mobilisation and Fiscal Commission (RMAFC), Dr. Mohammed Shehu, said that the continued growth in inflows is as a result to fiscal reforms, improved tracking and coordination among revenue agencies, stronger audits, digital monitoring, and other fiscal reforms.
“These measures,” he said, “have strengthened fiscal discipline and expanded the revenue pool available for allocation to federal, state, and local governments.
“This shift marks progress towards a more resilient, diversified, and sustainable public finance system with less dependence on oil earnings.”
According to Dr. Shehu, over the years, the Nigerian economy had suffered from boom-and-bust cycles driven by volatile oil prices, creating unpredictable revenue streams that undermine long-term planning and fiscal stability.
This, he explained, was compounded by high debt service obligations that consume a significant portion of government revenue, constraining public investment and threatening fiscal sustainability across all tiers of government.
“Bearing these challenges in mind, the National Stakeholders’ Discourse, themed ‘Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025,’ is not only timely but necessary.
“The Nigeria Tax Act, 2025, has harmonized Nigeria’s previously fragmented tax laws into a single statute, reduced or eliminated duplication and obsolete provisions, and enhanced ease of doing business.
“Once it comes into effect in January 2026, it will reduce compliance burdens, create a more coherent and predictable fiscal environment, and eliminate regional differences in tax administration.
“In short, this legislation serves as a call to action for the Commission and demonstrates the government’s commitment to a just, effective, and sustainable revenue system.”
He continued, “The decision by the Commission to convene this programme at this time is aimed at bringing all stakeholders, including organized labor, together for a deep discussion and understanding of the Act’s implementation.”
Earlier, Chairman of the Fiscal Efficiency and Budget Committee, Desmond Akawor, described the Nigeria Tax Act as a major reform milestone aimed at modernizing tax administration, strengthening compliance frameworks, closing revenue leakages, and expanding the revenue base across all tiers of government.
“For these reforms to achieve their intended outcomes, active participation, cooperation, and a shared understanding among stakeholders from government, the private sector, civil society, and development partners remain indispensable,” he stated.
Meanwhile, in his presentation, Chairman of the Tax Reform Committee, Professor Taiwo Oyedele, emphasized the need to consolidate over 60 different taxes and levies currently in operation into a single operational entity. He added that it is better to efficiently collect two taxes than to struggle with 50 that are poorly administered.
According to him, the multiplicity of taxes encourages corruption. Under the new Tax Act, basic consumption items will not be taxed, and all investors are exempted from capital gains tax.