Nigeria’s revenue drive outside the oil sector is gathering momentum, with the Federal Government recording a staggering N19.12 trillion in non-oil earnings between January and September 2026, driven largely by tax collections and foreign exchange reform.
The latest figures highlight the growing importance of non-oil revenue to the nation’s finances amid efforts to reduce dependence on crude oil earnings.
According to a report by Agora on Federation Account Allocation Committee (FAAC) disbursements, the revenue comprises N11.91 trillion from non-oil statutory sources and N7.21 trillion generated through Value Added Tax (VAT).
The performance underscores the increasing contribution of taxation and economic activities to government revenue.
VAT Emerges As Major Revenue Driver
The report revealed that VAT contributed approximately 22.9 per cent of the Federation’s total gross FAAC revenue during the nine-month period.
The development points to the growing significance of consumption-related taxes in sustaining government earnings.
Agora attributed the impressive revenue performance partly to the implementation of tax reforms, improved collections from Company Income Tax (CIT) and other corporate tax components.
The report noted that VAT receipts are closely linked to the level of taxable economic activities, consumer spending, business transactions and the effectiveness of tax collection mechanisms.
Increased corporate tax collections also provided a boost to the government’s revenue profile.
FX, Subsidy Reforms Boost Earnings
The report further identified the foreign exchange reforms introduced in 2023 as a major factor behind the increase in nominal government revenue.
According to Agora, adjustments in the exchange rate raised the naira value of government receipts, particularly earnings denominated in foreign currencies.
The unification of foreign exchange windows and removal of petrol subsidy were also identified as critical factors influencing the significant increase in nominal FAAC revenue recorded in 2024.
The reforms, introduced in 2023, altered the Federation’s revenue and expenditure position by increasing the domestic value of foreign-currency earnings and reducing government exposure to subsidy-related spending.
The N19.12 trillion generated during the first nine months of 2026 represents a significant contribution from non-oil sources to the Federation’s finances.
With statutory non-oil revenue and VAT accounting for the bulk of the earnings, the figures highlight the growing role of tax-driven revenue in Nigeria’s fiscal landscape.
