Politics
Beyond Oil: Nigeria’s Journey to a Tax-Driven Economy
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.
Minister of the Federal Capital Territory, FCT, Nyesom Wike, on Friday declared that he’s still a member of the Peoples Democratic Party, PDP.
Wike’s comment followed his expulsion from the party by the faction led by National Chairman, Kabiru Turaki.
Turaki had formally dispatched expulsion certificates to 11 prominent party chieftains, including Wike, former Ekiti State governor, Ayodele Fayose, Senator Samuel Anyanwu, Umaru Bature, Kamarudeen Ajibade, SAN, Abdurahman Muhammad Senator Mao Ohuabunwa.
He said their expulsion was aimed at sanitising the party ahead of the 2027 elections.
Reacting to the development on Friday, Wike dismissed the claim while assuring that he would continue to work with other party members in making PDP a relevant opposition party.
The minister spoke while addressing journalists after inspecting the Interchange bridge and road linking Gwarinpa with Jahi and direct to Katampe, Gishiri and Maitama.
He said, “Those that are factionalized are bound to leave the party, I’m still in PDP and you can see that not everybody has left.
“We still have good numbers and we will continue to work together and that’s what I have said to the party. Put your house in order because at the end of the day, if you don’t put your house in order, it’s the party that is losing.
“So those who are worried, we can work together to see how the party can remain a relevant opposition.”
The governments of Abia and Imo States have announced the launching of a joint security taskforce and surveillance along the Aba-Owerri expressway, starting from Owerrinta in Abia State all the way to Owerri, Imo State.
The launch followed recent attacks by criminals on the expressway, including kidnapping, armed robbery and other criminal activities.
The formation of the joint security taskforce and surveillance was announced by Ferdinand Ekeoma, the Special Adviser to Governor Alex Otti on Media and Publicity.
His statement read in part: “Arising from a strategic emergency security meeting held today, 4th December, 2025, by the Governors of Abia and Imo Sates at the Imo State Government Owerri House, His Excellency Governor Alex Otti and His Excellency Senator Hope Uzodinma resolved to set up a joint security Taskforce that shall consist of Soldiers, Naval Personnel, Police Officers , DSS Personnel, and other Government Security Agencies.
“The joint security Taskforce shall, starting from tomorrow 5th December 2025, patrol the road 24 hours nonstop, while carrying out massive surveillance in the surrounding bushes using sophisticated drones and other modern security equipment.”
According to the statement, Governor Alex Otti commended the Governor of Imo State for arresting the criminals who carried out an attack on His advanced team and other passengers a few days ago.
“The two Governors, while assuring citizens plying the road on a daily basis and those returning home for Christmas of their safety and security, warn that there would be severe consequences for any criminal caught on the road going forward”, Ekeoma concluded.
President Bola Tinubu has transmitted to the senate two lists of 34 career and 31 non career ambassadors nominees for screening and confirmation.
Prominent names listed as non career ambassadors include Reno Omokri, Femi Fani-Kayode, Gen. Abdulrahman Dambazau, Victor Ikpeazu and Ifeanyi Ugwuanyi.
Also listed as non career ambassadors nominees are Prof. Mahmood Yakubu, Vice Admiral Ete Ibas, Senator Jimoh Ibrahim, Senator Nora Daduut, Fatima Ajimobi, and Senator Ita Enang among others.
The two lists brings to 68 number of persons nominated so far as ambassadors awaiting confirmation by the Senate.
PRESIDENT TINUBU’S TRIBUTE TO CENTENARIAN ALHAJI TANKO YAKASAI
I’m still in PDP – Wike replies Turaki, dismisses expulsion
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