The Federal Government generated N21.22tn in revenue from five major agencies in the first half of 2025, underscoring an aggressive mobilisation drive that has boosted tax receipts, customs duties, and oil royalties.

Figures obtained from financial reports submitted to the Federation Accounts Allocation Committee (FAAC) revealed that the Federal Inland Revenue Service (FIRS) led collections with N13.76tn, followed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with N5.21tn, and the Nigeria Customs Service (NCS) with N2.02tn. The Ministry of Mines and Steel Development contributed N32.39bn, while the Nigerian National Petroleum Company Limited (NNPCL) reported N197.8bn in commercial earnings, though its remittances to FAAC stood at N6.96tn.

The combined revenue represents 58 per cent of the N36.35tn 2025 revenue projection, putting the Tinubu administration on course to surpass its fiscal year target if current momentum continues.

Despite the windfall, the Federal Government has maintained an aggressive borrowing push, seeking new loans and grants from multilateral and bilateral lenders to plug deficits and finance infrastructure.

According to the Debt Management Office (DMO), Nigeria’s total public debt rose to N149.39tn as of March 2025, up 22.8 per cent from N121.67tn in the same period of 2024. The World Bank remains Nigeria’s single largest creditor, with exposure increasing to $18.23bn, or 81.2 per cent of the country’s multilateral debt stock.

Economists warn that the borrowing spree could strain public finances, even as revenues improve. Development economist Aliyu Ilias noted that debt servicing continues to crowd out capital expenditure, fuelling inflation and weakening the naira. He questioned the rationale of heavy borrowing given rising revenues.

Conversely, economist Adewale Abimbola argued that concessionary loans from multilateral lenders are not inherently harmful if tied to viable projects with medium-term returns. “Borrowing isn’t bad; what matters is utilisation,” he said.

The CEO of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, praised the agencies’ strong revenue performance as a signal of economic recovery and reform effectiveness. He stressed that improved inflows should reduce the scale of borrowing anticipated in the 2025 “Budget of Restoration,” easing Nigeria’s growing debt burden.

With additional loans worth an estimated N38.24tn already approved for implementation by 2026, Nigeria’s total public debt could rise to N182.91tn, raising fresh concerns about the balance between fiscal sustainability and development financing.