The Lagos State chapter of the All Progressives Congress (APC) has expressed resounding praise for President Bola Ahmed Tinubu, celebrating what it describes as a transformative milestone in Nigeria’s fiscal landscape. In a detailed statement released on Thursday, the party’s Publicity Secretary, Seye Oladejo, highlighted a remarkable 411 per cent surge in national revenue collection, attributing this achievement to the bold and strategic economic reforms spearheaded by the Tinubu administration. The APC has framed this development as a “new dawn for Nigeria,” signaling a pivotal shift toward economic stability, transparency, and sustainable growth.
The statement, which was widely circulated across media platforms, emphasized that the revenue increase, as recently announced by Zacch Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), is a testament to the efficacy of Tinubu’s economic policies. According to Oladejo, the surge spans multiple sectors, including oil and non-oil revenues, Value Added Tax (VAT), customs duties, and, notably, direct remittances from the Nigerian National Petroleum Company Limited (NNPC) to the Federation Account—a first in Nigeria’s fiscal history. This achievement, Oladejo argued, underscores the administration’s commitment to transparency, efficiency, and accountability, values that have long been absent from the nation’s public finance framework.
A Historic Revenue Milestone
The reported 411 per cent increase in revenue collection represents a monumental leap for Nigeria, a country that has historically grappled with fiscal inefficiencies, corruption, and over-reliance on oil revenues. The inclusion of direct remittances from the NNPC into the Federation Account is particularly significant, as it marks a departure from previous practices where opaque financial mechanisms often obscured the flow of funds from the state-owned oil company. This development, according to Oladejo, is a clear indication that Tinubu’s reforms are not only addressing systemic inefficiencies but also fostering a culture of accountability in Nigeria’s fiscal management.
The revenue surge is multifaceted, encompassing both traditional and emerging sources of income. Oil revenues, which have historically accounted for a significant portion of Nigeria’s budget, have been bolstered by improved oversight and streamlined operations within the sector. Non-oil revenues, including VAT and customs duties, have also seen substantial growth, reflecting the administration’s efforts to diversify Nigeria’s revenue base. The FIRS, under Adedeji’s leadership, has implemented innovative strategies to enhance tax compliance and expand the tax net, ensuring that previously untapped sectors contribute to the national treasury.
Oladejo emphasized that these achievements are not isolated but part of a broader strategy to reposition Nigeria’s economy for long-term prosperity. “The milestones we are witnessing today are the result of deliberate, well-thought-out policies that prioritize the welfare of Nigerians while laying the foundation for sustainable economic growth,” he said. The APC’s statement also highlighted the role of technology and data-driven governance in achieving these results, noting that the FIRS has leveraged digital tools to improve tax collection efficiency and reduce leakages.
Economic Reforms: A Paradigm Shift
President Tinubu, who assumed office in May 2023, inherited an economy plagued by challenges, including high inflation, unemployment, and a volatile foreign exchange market. His administration has prioritized economic reforms aimed at stabilizing the naira, boosting foreign investment, and reducing Nigeria’s dependence on oil. Key among these reforms is the unification of the exchange rate, which, despite initial turbulence, has begun to yield positive results by attracting foreign capital and improving investor confidence. Additionally, the removal of fuel subsidies, a politically sensitive decision, has freed up resources for critical infrastructure and social programs, even as it sparked debates about its immediate impact on ordinary Nigerians.
The revenue surge announced by the FIRS is seen as a direct outcome of these reforms. By streamlining tax administration and cracking down on evasion, the government has significantly increased its fiscal capacity. The introduction of new tax policies, set to take effect in January 2026, is expected to further consolidate these gains. According to Oladejo, the new tax regime is designed to be equitable, ensuring that the burden does not fall disproportionately on low-income earners. Instead, the focus is on widening the tax net to include high-net-worth individuals and corporations that have previously evaded taxation.
“The reforms are people-centered, designed to balance growth with responsibility,” Oladejo stated. He explained that the new tax framework would prioritize fairness, ensuring that those with greater financial capacity contribute proportionately to the nation’s development. This approach, he argued, aligns with Tinubu’s vision of inclusive growth, where economic policies benefit all segments of society rather than a privileged few.
A Setback for the Opposition
The APC’s statement also took a swipe at critics of the Tinubu administration, whom Oladejo described as “opposition prophets of doom.” He argued that the revenue surge and other economic achievements serve as a rebuttal to those who have consistently predicted failure for the administration’s policies. The opposition, particularly the Peoples Democratic Party (PDP) and other political groups, has criticized Tinubu’s reforms, citing the immediate hardships caused by measures such as subsidy removal and currency devaluation. However, the APC maintains that these policies, though painful in the short term, are necessary for long-term economic stability.
Oladejo pointed to recent electoral victories in by-elections as evidence of public support for Tinubu’s agenda. “The people of Nigeria are beginning to see the results of these reforms, and their votes in recent by-elections reflect their confidence in the APC and President Tinubu,” he said. He described the by-election wins as a “referendum” on the administration’s performance, suggesting that Nigerians are increasingly optimistic about the direction of the country under Tinubu’s leadership.
The APC’s confidence is bolstered by the fact that the revenue surge is not an isolated achievement but part of a broader trend of economic recovery. For instance, Nigeria’s foreign exchange reserves have shown signs of improvement, and inflation, while still high, has begun to stabilize in recent months. These indicators, combined with the FIRS’s revenue performance, paint a picture of an economy on the mend, even as challenges such as unemployment and poverty persist.
Contextualizing Nigeria’s Fiscal Challenges
To fully appreciate the significance of the reported revenue surge, it is essential to understand the historical context of Nigeria’s fiscal challenges. For decades, Nigeria has struggled with a narrow revenue base, heavily reliant on oil exports, which account for over 80 per cent of government revenue in some years. This over-dependence has made the economy vulnerable to global oil price fluctuations, leading to recurrent budget deficits and borrowing to finance public expenditure.
Corruption and inefficiencies in tax administration have further compounded these challenges. The FIRS, prior to recent reforms, was often criticized for its inability to effectively collect taxes, particularly from high-income earners and corporations. Leakages in the system, coupled with a culture of tax evasion, meant that Nigeria’s tax-to-GDP ratio was one of the lowest in the world, hovering around 6 per cent compared to the global average of 15 per cent.
The Tinubu administration’s focus on tax reform and revenue diversification is, therefore, a critical step toward addressing these longstanding issues. By improving tax compliance and expanding the tax net, the government aims to increase the tax-to-GDP ratio, thereby reducing reliance on borrowing and creating fiscal space for development projects. The direct remittances from the NNPC to the Federation Account are particularly noteworthy, as they signal a break from the opaque financial practices that have characterized the oil sector for decades.
The Road to January 2026: What Lies Ahead
The introduction of a new tax regime in January 2026 is one of the most anticipated aspects of Tinubu’s economic agenda. While details of the regime are yet to be fully unveiled, Oladejo’s statement suggests that it will prioritize fairness and inclusivity. The APC has been keen to assure Nigerians that the new tax policies will not impose additional burdens on ordinary citizens, particularly those in the low-income bracket. Instead, the focus will be on ensuring that wealthy individuals and corporations pay their fair share.
This approach is likely to involve measures such as improved tax audits, stricter penalties for evasion, and incentives for voluntary compliance. The government is also expected to leverage technology to streamline tax collection processes, making it easier for businesses and individuals to fulfill their tax obligations. For instance, the FIRS has already introduced digital platforms that allow taxpayers to file returns and make payments online, reducing the bureaucratic hurdles that have historically hindered compliance.
The success of the new tax regime will depend on several factors, including public awareness and buy-in. The Tinubu administration has faced criticism for its communication strategy, with some analysts arguing that the government has not done enough to explain its policies to the public. To ensure the smooth implementation of the 2026 tax regime, the government will need to invest in public education campaigns to clarify the benefits of the reforms and address concerns about potential tax increases.
Implications for Nigeria’s Economic Future
The revenue surge and the broader economic reforms under Tinubu’s administration have far-reaching implications for Nigeria’s future. At the macro level, increased government revenue will enable the funding of critical infrastructure projects, such as roads, railways, and power plants, which are essential for economic growth. It will also support social programs aimed at reducing poverty and improving access to education and healthcare.
At the micro level, the reforms are expected to create a more business-friendly environment by reducing the cost of compliance and improving transparency. Small and medium-sized enterprises (SMEs), which form the backbone of Nigeria’s economy, stand to benefit from simplified tax processes and a more predictable fiscal environment. This, in turn, could stimulate job creation and economic activity at the grassroots level.
However, the success of these reforms is not guaranteed. Nigeria’s economy remains vulnerable to external shocks, such as fluctuations in global oil prices or disruptions in international trade. Domestically, issues such as insecurity, corruption, and bureaucratic inefficiencies could undermine the gains made so far. The government will need to maintain momentum on its reform agenda while addressing these challenges to ensure that the “new dawn” promised by the APC becomes a reality.
The Political Dimension
The APC’s statement is not only an economic commentary but also a political maneuver. By framing the revenue surge as a triumph of Tinubu’s leadership, the party is seeking to bolster its image ahead of future elections. The reference to by-election victories as a “referendum” on the administration’s performance is a clear attempt to capitalize on the economic achievements to gain political mileage.
However, the opposition is unlikely to concede defeat so easily. Critics have argued that the immediate benefits of the revenue surge are yet to trickle down to ordinary Nigerians, many of whom continue to grapple with high living costs and unemployment. The opposition may also point to the social costs of reforms such as subsidy removal, which have led to protests and public discontent in some quarters.
The APC, for its part, appears confident that its narrative of progress will resonate with voters. By emphasizing transparency, efficiency, and accountability, the party is positioning itself as the champion of good governance, in contrast to the opposition’s alleged pessimism. Whether this narrative will hold in the court of public opinion remains to be seen, but the APC’s statement suggests that it is prepared to defend Tinubu’s record vigorously.
Conclusion
The Lagos State APC’s commendation of President Tinubu’s administration reflects a growing optimism within the party about the direction of Nigeria’s economy. The reported 411 per cent revenue surge, driven by improvements in oil and non-oil revenues, VAT, customs, and direct NNPC remittances, is a significant milestone that underscores the impact of Tinubu’s reforms. By prioritizing transparency, efficiency, and accountability, the administration is laying the groundwork for sustainable economic growth, even as it navigates the challenges of a complex and volatile economic landscape.
The upcoming tax regime, set to commence in January 2026, represents a critical next step in this journey. By focusing on fairness and inclusivity, the government hopes to sustain the revenue gains while ensuring that the benefits of economic growth are shared equitably across society. However, the success of these reforms will depend on effective implementation, public support, and the government’s ability to address lingering challenges such as poverty, unemployment, and insecurity.
For now, the APC is basking in the glow of what it sees as a transformative achievement. The party’s statement is both a celebration of Tinubu’s leadership and a challenge to the opposition to acknowledge the progress made. As Nigeria moves toward a new phase of economic reform, the stakes are high, but so too are the opportunities for a brighter, more prosperous future.
