Nigeria's non-oil tax revenue solidified its dominance over oil in FIRS collections, reaching a record of ₦15.9t in 2024, more than 2.7x the ₦5.8t from oil

Key takeaways:

  • FIRS recorded ₦15.9 trillion of non-oil tax, almost three times the ₦5.8 trillion recorded for oil tax.
  • Non-oil tax revenue made up 73.3% of the total revenue collected in 2023.
  • From 2012 down to 2024, non-oil tax revenue surpassed oil tax revenue most of the time.
  • Oil taxes are petroleum profit tax and company income (oil & gas) tax while non-profit tax includes company income (non-oil) tax, gas tax, capital gains, stamp duty, NCS import VAT, and non-import VAT.

From 2012 down to 2024, non-oil tax revenue consistently outperformed oil tax revenue in most years. In 2024, the Federal Inland Revenue Service (FIRS) recorded ₦15.9 trillion in non-oil tax revenue, nearly three times the ₦5.8 trillion collected from oil taxes. Non-oil tax revenue accounted for a dominant 73.3% of the total revenue generated for the year. This trend reflects a broader shift in Nigeria’s tax landscape, where non-oil sources are becoming increasingly significant. Oil tax revenue mainly comprises Petroleum Profit Tax (PPT) and Company Income Tax (Oil & Gas).

On the other hand, non-oil taxes include a wider range of sources such as Company Income Tax (Non-Oil), Gas Tax, Capital Gains Tax, and Stamp Duties. It also includes Nigeria Customs Service Import VAT and Non-Import VAT, both of which contribute significantly.

This diversification has helped improve revenue stability, especially during periods of oil price volatility. The sustained rise in non-oil revenue signals progress in tax reforms and improved economic resilience.

Source:

Federal Inland Revenue Service

Period:

2024
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Key Takeaways:
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  • Personal income tax reached its peak contribution at 38.92% in 2019/20 before dropping by 4% in 2023/24.
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