The federal government has recorded N6.9 trillion in revenue between January and April 2025, reflecting a 40 percent year-on-year growth compared to N5.2 trillion during the same period in 2024.

Minister of Finance and Coordinating Minister of the Economy Wale Edun disclosed this on Monday in Abuja during a Q2 2025 Citizens and Stakeholders’ Engagement Session briefing on the fiscal performance and reform outlook of the current administration.

According to Edun, the revenue growth is attributable to ongoing reforms, particularly in foreign exchange policy and fiscal governance, as well as the deployment of technology and automation to enhance revenue collection across Ministries, Departments, and Agencies (MDAs).

There is hope that the government will generate more revenue as the year runs by, following the expected surge in revenue from the Federal Inland Revenue Service (FIRS) when businesses file their tax returns by the end of June.

“Through improved transparency, automation, and plugging revenue leakages, we’ve moved from an annual revenue of about N12.5 trillion to over N20 trillion in 2024,” Edun stated. He added that the government remains focused on ensuring all revenues due to the Federation are collected and properly accounted for, through revenue assurance mechanisms and stricter compliance monitoring.

Despite the upward trajectory, Edun noted that delays in revenue remittance by some government-owned enterprises, due to late auditing and reconciliation processes, continue to hinder prompt inflows. “Institutions that are mandated to remit up to 80 percent of their operating surpluses to the federal purse under the Fiscal Responsibility Act and the 2020 Finance Act often delay until audited figures are finalised,” he explained.

He noted that in such cases, the Auditor-General reviews the financials and issues a demand note for reconciliation. This process introduces a lag in cash inflow, but the government is committed to ensuring eventual compliance without resorting to estimations or unverified assumptions.

Edun also addressed improvements in debt sustainability metrics, pointing to a significant reduction in the debt service-to-revenue ratio. In the first quarter of 2023, before the current administration took office, the figure stood at 150 percent, meaning debt servicing exceeded total revenue. By the end of 2024, the ratio had dropped to about 60 percent, driven by rising revenue and tighter fiscal discipline.

He added that the government has discontinued the practice of excessive borrowing through Central Bank overdrafts (Ways and Means), in line with fiscal responsibility legislation. “We now operate within regulated borrowing limits, which enhances debt sustainability,” Edun said.

The Minister acknowledged that oil revenue performance remains below target due to underwhelming crude oil production and global price fluctuations. “We’re not where we expected to be on oil output. Every effort is being made to raise production, but this has had an impact on short-term revenue projections and debt service funding,” he said.

Nonetheless, Edun believes long-term gains from Nigeria’s return to value-added exports and industrialisation will strengthen the economy. He referenced the country’s growing domestic refining capacity, led by the 650,000 barrels per day Dangote Refinery and other modular refineries, which collectively provide up to 1.2 million barrels per day in capacity.

“This reduces raw exports, creates jobs, and boosts foreign exchange earnings by exporting refined petroleum products and supplying domestic industries with inputs,” he said.

Edun further noted that international rating agencies, including Fitch and Moody’s, have upgraded Nigeria’s credit ratings in response to the ongoing reforms. These upgrades, he said, send strong signals to global investors and reduce the cost of borrowing on international markets. “Better sovereign ratings mean lower interest rates on bonds, both externally and locally, which supports inflation control and macroeconomic stability,” he said.

The government’s consumer credit initiative is also gaining traction. Managing Director of CreditCorp, Mr. Uzoma Nwagba, revealed that 400,000 young people are already being targeted under the take-off phase of the scheme. “Though the official launch is pending, eligible beneficiaries can already access credit via our platform,” he said, referring to loan packages of N200,000 to N300,000 available to early applicants, including youth corps members.

In a related development, the Ministry of Finance Incorporated (MoFI) is intensifying efforts to optimise government assets. Speaking on behalf of the MoFI Managing Director, Dr. Armstrong Takang, Executive Director Tajudeen Ahmed said the asset register has identified N38 trillion worth of government-owned assets over the past two years.

Ahmed projected that the total value of assets captured could hit N70 trillion by 2026, as more assets are brought into the system.

The MoFI aims to scale this value to N100 trillion over the next decade, leveraging it to drive investment, transparency, and capital formation.

Edun concluded that the broader goal is to build a fiscally resilient and inclusive economy, where government revenues are optimised, leakages are curtailed, and resources are directed toward high-impact projects and social investments. He stated that while external risks such as oil price volatility remain, the foundations laid through macroeconomic reforms and institutional restructuring are already yielding measurable results.