Nigeria’s revenue structure is undergoing a major shift, with tax income now taking center stage as earnings from crude oil continue to decline, a new report by Quartus Economics has revealed.
Tax income now accounts for over 87% of all federally collected money in 2024, the study shows, having increased dramatically during the last 15 years.
Oil income, on the other hand, has plummeted from nearly 73.9% of total revenue in 2010 to just 25.8% in 2024, reflecting a sustained shift away from reliance on crude exports.
Driven by tax law changes, improved collection systems, and a broader revenue base, non-oil revenue has also increased rapidly to almost three-quarters of total revenue.
Analysts connect this change to lessons from the 2014 oil price collapse, which made the country’s vulnerability to global commodity swings clear.
Rising VAT rates and tougher enforcement policies have helped recent tax collection increases, supporting government revenue strongly in the face of economic strain, The News Chronicle gathered.
Still, the report cautions that increasing public debt is a cause of anxiety. Although income has grown, borrowing has also expanded; debt service expenses have recently risen sharply.
As people want more accountability in a more tax-driven society, experts predict the real test will be how effectively the government translates higher income into economic expansion, infrastructure development, and improved standards of living.
