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Beyond Oil: Nigeria’s Journey to a Tax-Driven Economy

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In a recent article by Dare Adekanmbi published in The Guardian, the focus is on how the Federal Inland Revenue Service (FIRS) is rapidly transforming the landscape of Nigeria’s economy.

As the nation attempts to move beyond its reliance on crude oil revenue, tax revenue has emerged as the dominant source of funds for government operations.

This evolution marks a significant change in Nigeria’s fiscal dynamics and should be highlighted as a pivotal journey toward economic diversification and stability.

Historical Context: From Agriculture to Crude Oil

Before Nigeria gained independence in 1960, agriculture was the backbone of its economy, with regions specializing in groundnuts, cocoa, rubber, and palm oil.

However, the discovery of crude oil in 1956 shifted this paradigm, leading to an economy heavily reliant on oil revenues. The Nigerian National Petroleum Corporation (NNPC) became the cornerstone of government revenue, overshadowing agricultural contributions.

The Rise of FIRS: Dominating Revenue Contributions

Fast forward to 2024, the FIRS has eclipsed NNPC’s contributions, accounting for nearly 70% of total revenue shared among federal, state, and local governments at **FAAC** (Federation Account Allocation Committee) meetings. For example, in January 2024, FIRS contributed ₦1.275 trillion, while NNPC’s share diminished to just ₦115 billion**. This trend continued throughout the year, marking a decisive shift in Nigeria’s revenue generation model.

The impressive growth of FIRS is attributed to comprehensive reforms implemented under the leadership of Dr. Zacch Adedeji. By adopting a customer-centric approach and streamlining tax processes, the agency has successfully enrolled over 182,724 new taxpayers in its Tax Pro-Max platform, representing a 25.3% increase. This remarkable growth showcases the agency’s commitment to serving taxpayers rather than treating them as adversaries.

Impact of the Tinubu Administration

The article also credits President Bola Tinubu’s administration for the significant increase in FAAC allocations. The removal of the fuel subsidy and the unification of the exchange rate have played crucial roles in bolstering tax revenue, reflecting a strong commitment to economic diversification. Under Tinubu’s leadership, states are now reportedly receiving nearly **three times the FAAC allocations compared to previous years.

FIRS is targeting to collect ₦25.2 trillion in tax revenue for 2025, emphasizing the government’s ongoing efforts to enhance fiscal stability. Achieving a tax-to-GDP ratio of **18%** within the next three years is among Dr. Adedeji’s key goals, pursued without burdening taxpayers. He advocates for robust data and merit-driven processes to sustain this upward trajectory.

Critical Outlook

While Nigeria’s economic landscape shows promising developments, the shift from oil reliance to a more diversified revenue base is critical for long-term sustainability. The successful transformation of FIRS into a more efficient and customer-focused agency is commendable but will require continuous innovation and commitment.

For the ambitious targets set forth, it is essential that both the government and the FIRS maintain transparency and accountability to foster trust and support among taxpayers. This is vital for ensuring that the burgeoning revenue can effectively meet the needs of Nigerian citizens across various levels of government.

 

Politics

Another Abia PDP House of Assembly member defects to LP

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The member representing Isuikwuato constituency in the Abia State House of Assembly, Lucky Nweke Johnson has resigned from his party, the Peoples Democratic Party (PDP) and joined the Labour Party (LP).

Johnson in a letter he addressed to the Speaker, Emmanuel Emeruwa, said he quit PDP because of the crises the party is having at the national and state levels.

The Isuikwuato constituency representative also defended his decision to join LP, saying it was informed by Governor Alex Otti’s “sterling performance”.

The lawmaker who said he took the decision after consulting with his constituents, requested that he be henceforth addressed as a member of the Labour Party.

Ekwutosblog recalls that in February, the member representing Isiala Ngwa South constituency, Rowland Dennis resigned from PDP and joined the LP. The development was condenmed by Abia State chapter of the PDP.

 

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PETITION FOR THE RECALL OF THE SENATOR REPRESENTING KOGI CENTRAL SENATORIAL DISTRICT

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INDEPENDENT NATIONAL ELECTORAL COMMISSION

PRESS RELEASE

PETITION FOR THE RECALL OF THE SENATOR REPRESENTING KOGI CENTRAL SENATORIAL DISTRICT

The Commission held its regular weekly meeting today, Tuesday 25th March 2025. Among other issues, the meeting discussed the petition for the recall of the Senator representing Kogi Central Senatorial District.

The process of recall is enshrined in the 1999 Constitution, the Electoral Act 2022 as well as the Commission’s detailed Regulations and Guidelines for Recall 2024, available on our website. All petitions will be treated in strict compliance with the legal framework.

The petition from Kogi Central Senatorial District was accompanied by six bags of documents said to be signatures collected from over half of the 474,554 registered voters spread across 902 Polling Units in 57 Registration Areas (Wards) in the five Local Government Areas of Adavi, Ajaokuta, Ogori/Magongo, Okehi and Okene.

The Commission’s immediate observation is that the representatives of the petitioners did not provide their contact address, telephone number(s) and e-mail address(es) in the covering letter forwarding the petition through which they can be contacted as provided in Clause 1(f) of our Regulations and Guidelines. The address given is “Okene, Kogi State”, which is not a definite location for contacting the petitioners. Only the telephone number of “the lead petitioner” is provided as against the numbers of all the other representatives of the petitioners.

The Commission wishes to reiterate that the recall of a legislator is the prerogative of registered voters in a constituency who sign a petition indicating loss of confidence in the legislator representing them. Once the petition meets the requirements of submission, as contained in our regulations, the Commission shall commence the verification of the signatures in each Polling Unit in an open process restricted to registered voters that signed the petition only. The petitioners and the member whose recall is sought shall be at liberty to nominate agents to observe the verification, while interested observers and the media will also be accredited. At each Polling Unit, signatories to the petition shall be verified using the Bimodal Voter Accreditation System (BVAS).

Consequently, if the petitioners fully comply with the requirements of Clause 1(f) of the Regulations and Guidelines regarding the submission of their petition, the Commission will announce the next steps in line with the extant laws, regulations and guidelines. In the absence of a definite contact address, the Commission is making efforts to use other means to notify the representatives of the petitioners of the situation.

The Commission reassures the public that it will be guided by the legal framework for recall. The public should therefore discountenance any speculations and insinuations in the social media.

Sam Olumekun mni
National Commissioner & Chairman
Information and Voter Education Committee
Tuesday 25th March 2025

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PRESIDENT TINUBU FLAGS OFF THE TORCH OF UNITY MOVEMENT, REAFFIRMS COMMITMENT TO SPORTS DEVELOPMENT

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STATEHOUSE PRESS RELEASE

PRESIDENT TINUBU FLAGS OFF THE TORCH OF UNITY MOVEMENT, REAFFIRMS COMMITMENT TO SPORTS DEVELOPMENT

President Bola Tinubu, on Tuesday in Abuja, flagged off the Torch of Unity Movement for the 22nd National Sports Festival and reaffirmed his administration’s commitment to supporting and providing an enabling environment for sports development.

The sports festival tagged the Gateway Games, will take place in Ogun State from May 16 to May 30.

President Tinubu described sports as a unifying force and a catalyst for youth engagement, national cohesion, and economic growth.

The President called on the public and private sectors to actively contribute to Nigerian sports development, particularly in infrastructure expansion, talent identification, athlete nurturing, and sponsorship of sporting events.

He stressed that enhanced collaboration is essential for advancing the nation’s sporting potential and ensuring Nigeria remains a dominant force in global sports.

The President described the Torch of Unity as a symbol of peace, strength, and solidarity.

The torch will herald the festival by travelling through all 36 states and the Federal Capital Territory.

“Since the inception of the National Sports Festival in 1973, the games have been a veritable vehicle for the interaction and integration of our young sportsmen and women.

“This festival provides a platform for all states and the FCT to showcase their sporting prowess under healthy competition, sportsmanship and friendly interaction to enhance and strengthen national unity.

“The games represent much more than just a competition of athletic skill; they embody the unity, strength, and resilience that define us as a nation.

“Every step we take together towards the festival is not merely an act of preparation for a sporting event, but a reaffirmation of our collective commitment to national building through sports,” the President stated.

The President recognised the contributions of Nigeria’s sporting legends and paid tribute to Olympic medalist and the National Torch Bearer, Falilat Ogunkoya.

He commended her dedication to promoting unity and sports excellence in Nigeria and Africa.

The President also extended his best wishes to the Super Eagles of Nigeria in their FIFA 2026 World Cup qualifying match against Zimbabwe Warriors in Uyo, Akwa Ibom State, later on Tuesday, expressing confidence in their ability to secure victory.

Governor Dapo Abiodun said Ogun State is fully prepared to host a world-class event, welcoming over 10,000 athletes in a festival designed to set new records.

He noted that elite Nigerian athletes such as Anthony Joshua and Tobi Amusan would grace the occasion, further reinforcing Nigeria’s status as a global sporting powerhouse.

“As Nelson Mandela once said, sports can change the world. They can inspire and unite people in a way that little else can.

“The unity torch, as it journeys across the Federation, is not merely a symbol of the forthcoming games but a reflection of our shared aspirations and collective identity.

“As the proud host of the 22nd National Sports Festival, we are not only ready to host over 10,000 athletes and officials but also to warmly welcome guests and supporters from every corner of the Federation.

“For the first time in the history of the National Sports Festival, all our athletes will be housed within a single purpose-built facility, ensuring comfort, convenience and camaraderie.

“Our sporting infrastructure meets international standards, and we have left no stone unturned in delivering a festival that will set new records in organisation, participation and excellence.

“Our facilities are ready, our people are enthusiastic, and our athletes are prepared to showcase the best Nigerian sporting talent to the world,” he said.

Governor Abiodun thanked President Tinubu for ensuring peace in Nigeria, emphasising that “without peace, there will be no sports festival.”

He commended the Federal Ministry of Youth Development, the National Sports Commission (NSC), the Nigerian Olympic Committee, and all stakeholders for their contributions to the success of the forthcoming festival.

The Chairman of the NSC, Shehu Dikko, described the National Sports Festival as Nigeria’s version of the Olympics, adding that, for the first time, the Commission has invited the best junior athletes in the country to participate under its sponsorship.

He said these young athletes will compete under the Invited Junior Athletes (IJA) category, marking a historic inclusion in the festival.

Later, at the forecourt of the Presidential Villa, the deputy governor of Delta State, Monday Onyeme, representing Governor Sheriff Oborevwori, handed over the Festival Torch of Unity to the Chairman of the National Sports Commission (NSC), Shehu Dikko.

President Tinubu received the torch from Dikko, who in turn passed it to the Chairman of the Main Organizing Committee, Hon. Bukola Olopade, who then entrusted it to Falilat Ogunkoya, the National Torch Bearer, for its journey across the country.

 

Bayo Onanuga

Special Adviser to the President

(Information & Strategy)

March 25, 2025

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