Rising taxes and oil revenues by the Federal Government have boosted its earnings by 76 per cent, from N7.1 trillion in 2022 to N12.5 trillion in 2023.
The newly released 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, obtained by our correspondent from the Ministry of Budget and Economic Planning, revealed this development.
According to the budget office, while total revenue was up by 76 per cent, oil revenue rose by a whopping 200 per cent from N0.8 trillion in 2022 to N2.4 trillion in 2023, contributing 19.2% to total revenue.
The remarkable increase in oil revenue is attributed largely to higher crude oil production, which increased from an average of 1.31mbpd in 2022 to 1.41mbpd in 2023.
Non-oil revenue increased by 57.8% from N6.4 trillion in 2022 to N10.1 trillion in 2023, contributing 80.8% to the total revenue.
In 2023, the actual gross oil and gas revenue was N7.87 trillion, compared to N9.38 trillion projected, representing an 83.9% performance.
After accounting for deductions, the net oil and gas revenue which accrued to the Federation Account was N4.93 trillion. This is N306.0 billion, about 6.6% above the target.
Non-oil revenue outperformed the budget both at gross and net levels.
The projection for gross non-oil taxes was N7.53 trillion, but N9.89 trillion was collected, representing a performance of 31.2% over the budget.
Corporate Income Tax (CIT) and Value-added Tax (VAT) collections were N4.27 trillion and N3.64 trillion, representing 103.9% and 23.2% performances above the target, respectively. Customs collection was N1.98 trillion, which is 79.6% of the target.
FG’s revenue showed significant performance over the budget.
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