Opinion
Tax Revenue as Nigeria’s New ‘Crude oil’
Published
2 years agoon
Prior to Nigeria’s Independence in 1960, agriculture was the mainstay of its economy, even as reflected in the economic activities of the regions there were in the country at that time. Famous stories of the First Republic chronicled how the defunct regions were reliant on revenues from the groundnut pyramids in the north, the cocoa export receipts from the defunct west and the rubber as well as palm oil proceeds from the east.
With the discovery of crude oil in commercial quantities, beginning from Oloibiri in the present-day Bayelsa State in 1956, agriculture, over time, became supplanted by black gold in terms of contributions to the national revenue pool. Not only did crude oil receipts ride the wave as far as the total collectable revenue was concerned, but the Nigerian National Petroleum Corporation (NNPC) became the cornerstone entity for the three tiers of government to look up to for salvation in terms of their fiscal projections.
However, those days when the federal, state and local government councils wait zealously for revenue figures from NNPC have not only receded into the past but appear to have gone for good. At the monthly meeting of the Federation Account Allocation Committee (FAAC), focus has shifted to the Federal Inland Revenue Service (FIRS), the goose that is laying the golden egg for the fiscal stability and wellbeing of the federation.
For those who may not know, the ‘cake’ shared monthly by the Federation is baked by four major entities: NNPC, FIRS, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), formerly known as Department of Petroleum Resources (DPR) and the Nigeria Custom Service (NCS).
Of the body of ‘bakers,’ FIRS under Zacch Adedeji has emerged as the cream of the crop, singlehandedly and aggregately accounting for close to 70 percent of the total revenues collected and shared by the three tiers of government at FAAC meetings in 2024.
Out of N2.068 trillion that accrued to the Federation Accounts in January 2024, tax collected by FIRS accounted for more than 50 percent, with the agency’s contribution totalling N1.275 trillion. The other three revenue-remitting bodies jointly raked in the balance. While oil receipts from NNPC brought N115billion, NUPRC grossed N469.8billion, just as the Nigeria Custom Service remitted N207 billion.
The contribution of FIRS to the pool grew in February by N300 billion from what it brought to the account in January. From the N2.3 trillion that accumulated into the account, takings by FIRS amounted to N1.491 trillion, a collection figure that was more than 50 percent of the total revenue for the month. In fact, NNPC’s contribution to the pool was just N92 billion. NUPRC and NCS contributed N487 billion and N254 billion, respectively.
In March, FIRS contributed N1.061 trillion out of N1.867 trillion in the pool and in April, the Federation Account got N1.187 trillion from FIRS out of the N2.192 trillion revenue accrual. For May, out of the N2.324 trillion shared by the three tiers of government, FIRS alone contributed N1.571 trillion.
The last month in the first half of 2024 finished on a strong note for the Federation in terms of the size of the ‘cake’ available for sharing among the three tiers of government. Of the N3.5 trillion accrual in the Federation Account for the month, FIRS accounted for N2.841 trillion. Contributions from NNPC for the month was N8.3billion with NUPRC and NCS remitting N402.5billion N264 billion, respectively.
The upward trajectory of FIRS contribution to the Federation Account continued at the beginning of the second half of the year. It accounted for N2.295 trillion out of N3.508 trillion remitted into the Federation Account for July, representing 65.4 percent of the total haul. For August, the FIRS figure for FAAC was N1.87 trillion out of the N2.7 trillion in the pool. In September, October, November, and December, the agency’s contributions were N1.45trillion (out of N2.4trilion), N1.74trillion (out of N2.9), N1.56trillion (out of N2.8trillion) and N1.41trillion (out of NN2.2trillion), respectively.
The significance of FIRS contributions displacing oil receipts and turning tax revenue into the country’s new ‘crude oil’ has been well situated by the Accountant General of the Federation, Dr (Mrs) Oluwatoyin Madein. At an event in Abuja, she declared: “Tax revenue, as of today, is the highest source of revenue accruing to the Federation. Therefore, at FAAC meetings, we eagerly await the numbers coming from FIRS because the performance of the agency keeps on increasing and this brings succour to all tiers of government.”
Putting FIRS contribution to FAAC revenue pool in 2024 in context, we will see how it has helped the three tiers of government to plan, project and experience fiscal stability. There is nothing like fiscal discipline except you have accurate revenue prediction. If you say you want to spend N10, that means you must assurance that the N10 will come from somewhere. This commendable collection performance is in tandem with Adedeji’s vision of making taxation the pivot of national development.
What did FIRS do differently?
The impressive revenue collection posted by FIRS is not a product of happenstance. It is the outcome of a well-thought-out strategy and process re-engineering that formed the bedrock of a cocktail of administrative and process reforms embarked upon by the agency under Adedeji. One of his key refrains is that if FIRS is going to succeed in its critical national mandate of domestic revenue mobilisation, taxpayers must be at the centre of all policies and initiatives of the agency.
The FIRS chairman summarised the restructuring and re-orientation that powered the huge revenue collection and turned it to a customer-centric agency thus: “We restructured our operations at FIRS in such a way that we are now effectively carrying out our duty of assessing, collecting and accounting for taxes. We used to have functional types of taxes, but we have since identified that the only customers we have are the taxpayers. We have, therefore, improved the way we relate with our customers by rearranging our operations based on our customers, using their turnover as the basis to categorise them into large, medium, and emerging tax groups.
“We did this to develop expertise in what we do. Secondly, to provide them with a one-stop shop for their activities. If you are in a large tax group, you only need to go to one office to pay all forms of taxes, including conducting audit and other activities. You do not need to move from one office to another again.
“We are here to serve the taxpayers. The taxpayers are not armed robbers or criminals that we will be chasing about. FIRS is also not a law enforcement organisation. We are partners in progress. The taxpayers are the trees in our vineyard. The only thing we can do is to ensure they are well watered and well pruned so they can bear good fruits for us to have a big harvest.
Because of the streamlining of tax processes, the removal of hurdles in the way of tax payment as well placing a high premium on transparency and accountability, a total number of 182, 724 new taxpayers, representing a 25.3% increase, voluntarily enrolled on the agency’s tax administration platform called Tax Pro-Max in 2024. It is the single biggest leap in the number of firms in the tax net in the recent history of the tax agency. This not only underscores the level of trust reposed in the new processes emplaced at the agency. It also lends credence to Adedeji’s sharp vision of making the agency one of the world’s most efficient and trusted revenue authorities.
The president, Lagos Chamber of Commerce and Industry (LCCI), Mr Gabriel Idahosa, testified to the unusual transformation witnessed at FIRS. Idahosa commended the agency for conducting reforms that align with the needs of businesses, particularly singling out the increasing use of technology in tax administration as well as the shift in the mental geography of tax officers from being mere tax collectors to “actively providing services that enhance business operations.”
One key import of the unprecedented growth in tax revenue for the Federation is that the non-oil sector accounts for about 75% of the total haul. This clearly signposts the commitment of the President Bola Tinubu-led administration to truly diversify the economy from its mono-product, crude oil. According to Adedeji, all accolades for the impressive tax collection by FIRS should go to President Tinubu. Of a truth, two key policies by the president, namely the removal of fuel subsidy and unification of the exchange rate, gave fillip to the record tax revenue collection by FIRS. The negative consequences of not setting these economic fundamentals at the time President Tinubu did would have been unbearable for an economy that was already in the ICU before President Tinubu assumed office.
Despite the laudable achievements of the agency since its assumption of office in September 2023, Adedeji is not resting on his oars. He believes the success recorded so far is just a beginning, with his key fiscal focus being on growing Nigeria’s tax-to-GDP ratio to 18% in the next three years. This, he believes, is achievable without putting additional burden on the taxpayers but by making the pie bigger to collect more revenue for government at all levels to be able to meet their obligations to the citizenry.
For him, there is irreducible minimum if the upward tax revenue trajectory must continue. “We can play with everything, but what we cannot afford to play with, if we are going to succeed, are data and merit,” he once said.
It needs to be said that prior to Adedeji’s leadership, the agency’s contribution to FAAC had been growing. However, the coming of Adedeji has moved the quantum significantly higher through a potpourri of internal administrative and process reforms he introduced, leading to simplifying of tax payment.
For 2025, FIRS is targeting to collect N25.2 trillion in tax revenue, and this means more money for the three tiers of government to meet their needs. This is another reason why there should be no opposition to the tax reform bills currently before the National Assembly. If FIRS could post these huge records in a short time, breaking its own records and setting higher targets and goals, a tax system that is modernised and fit for purpose can only add impetus to the task of domestic revenue mobilisation given to FIRS.
For those asking the question: where does tax revenue by FIRS go? The answer is this: every month that the federal, state and local government councils gather in Abuja for FAAC meeting and money is shared accordingly, about 70% of that money comes from the tax revenue FIRS collects from taxpayers.
For perceptive observers, President Tinubu deserves to be hailed for the huge jump in shareable FAAC allocations, which continue the upward swing since his assumption of office. All the states now collect almost three times of what they used to get as FAAC allocation prior to the coming of the Tinubu administration. Every month, managers of the three tiers smile to the banks, thanks to the President’s courageous leadership.
Adekanmbi is the Special Adviser on Media to the Executive Chairman, Federal Inland Revenue Service (FIRS).
Opinion
Seven Factors That Keep Sharafadeen Alli Ahead in 2027 Oyo Governorship Race
Published
2 days agoon
September 14, 2026By
Bisi Oladele
Fact 1: Homegrown Leader with Unmatched Grassroots Experience
Senator Alli’s political journey began at the grassroots level in Ibadan, where he made history in 1991 as the first democratically elected Executive Chairman of Ibadan North Local Government. This early leadership role demonstrates a deep, foundational understanding of local governance and the needs of the people, a critical asset for a state governor.
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Fact 2: Rare Combination of Top-Tier Academic and Professional Credentials
Senator Alli is not just a politician but also a distinguished legal practitioner with a Ph.D. in Legislative and Strategic Studies. His extensive education, including degrees from the University of Ibadan, combined with his fellowships from prestigious professional institutes, provides him with the analytical, legal and strategic acumen required to manage the complex affairs of Oyo State.
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Fact 3: Proven Executive Administrative Competence at the Highest State Level
His tenures as Secretary to the Oyo State Government (SSG) and later as Chief of Staff (CoS) to the Governor showcase his direct experience in the engine room of state administration.
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He has been intimately involved in policy formulation, committee leadership and the day-to-day running of the state, making him uniquely prepared to assume the governorship and hit the ground running from day one.
Fact 4: Demonstrated Executive Business Leadership with Regional Impact
As Chairman, Board of Directors of Odu’a Investment Company Limited, Senator Alli was not just an administrator but a visionary economic leader. He spearheaded landmark investments such as the Cocoa Mall and Heritage Mall in Ibadan, which transformed the economic landscape of Oyo State. This proven ability to attract and drive large-scale economic development is directly transferable to governing Oyo State.
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Fact 5: Battle-Tested and Consistent Political Figure
Senator Alli’s political career spans more than three decades, weathering the annulment of his 1996 Senate election and consistently remaining a relevant and influential force. He has contested for Deputy Governor and Governor in the past, giving him a comprehensive understanding of statewide campaigns and the diverse political landscape of Oyo State. His journey demonstrates resilience, deep political networks and unwavering commitment.
Fact 6: Current, Performing Senator and Influential Figure
As the sitting Senator for Oyo South, he is actively delivering quality representation, impactful constituency projects and people-oriented legislation. He has sponsored five Bills and raised six Motions to promote development. Senator Alli has also facilitated employment for 100 constituents across Federal Government agencies.
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His role as Chairman of the Senate Committee on Agricultural Colleges and Research Institutions, as well as his membership in the ECOWAS Parliament, demonstrate that he is not only focused on local issues but is also equipped with a broader perspective on governance, trade and regional integration.
Fact 7: Unifying and Respected Traditional Title Holder
Senator Alli’s position as the Ekaarun Balogun of Ibadanland, one of the highest-ranking chieftaincy titles in the ancient city, signifies his deep-rooted connection to tradition and his standing as a respected community leader.
His reputation as a calm, wise, simple, relatable and inclusive bridge-builder who unites people across political, religious and ethnic divides positions him as a leader capable of fostering peace, stability and consensus across the entire state.
Oladele is the Director of Media & Publicity, Senator Sharafadeen Alli Campaign Organization.
Opinion
Oloye Lekan Alabi: Memories Ere Death Beckoned Both Caller and Called |By Wole Adejumo
Published
1 month agoon
August 7, 2026By
Mega IconThe young lady who usually delivers packaged moinmoin for members of staff who want it for lunch came in as she usually did, and after the exchange of pleasantries, I asked if she knew the difference between Ọọlẹ and Moinmoin. My colleagues looked at me strangely when I disagreed with her response that both were the same. I promised to tell her the difference later. I, however, told my colleagues the difference as explained to me by Oloye Lekan Alabi. Though a suave, urbane and sophisticated Ibadan chief, he took time to explain the similarities and differences as we prepared for the annual Oke ‘Badan Festival some years back.
He had retired from the service of Odua Investment Company Limited, where he demonstrated competence and character then, but that did not in any way diminish his encyclopaedic knowledge of history. He sat beside the Aboke, Chief Ifamapowa and some other stakeholders at the press conference heralding the ceremony that year.
My first real contact with him happened after I had written a short piece, ‘The Man Who Would Be King’, about him. Oloye, who bore the titles of Jagun Olubadan and Akogun of Lalupon agreed to have an interview. My Bureau Chief, Bola Davies (now of blessed memory) directed me to go and when I got to his office in Cocoa House, he thanked me for wishing him well. He thereafter took time to explain the Olubadan ascension system. The interview was published in one of the earliest editions of City People Quarterly back then. That interview and some other things I wrote about him eventually earned me a mention in one of his books.
Oloye Alabi was no doubt an aficionado when history, music and culture are up for discussion. Of course, with his rich cultural heritage, he stood out anywhere and everywhere. Little wonder His Imperial Majesty, the Ooni of Ife hosted his investiture when he was appointed as the first Cultural Ambassador of the National Museum, Ile Ife. His immense breadth of knowledge will give him a place in history just as it did to the likes of Chiefs John Adeyemi Ayorinde, Theophilus Akinyele and Alaafin Lamidi Adeyemi III. His love for good music too was more than obvious. Like a true connoisseur, he did everything with class and style. He wrote countless articles about Chief Commander Ebenezer Obey, King Sunny Ade, Chief Eddy Okonta and many more. His love for Yusuf Olatunji’s Sakara music defied competent description. It was so great that he named his youngest son after the Sakara legend.
In one of his many philosophical volumes, ‘Baba L’Egba’ as Olatunji was fondly called, sang that “o ye ka ni ‘fura taa ba nsin ale eni lo” (one should be watchful when seeing off a concubine) and the only person I felt I could ask what was on Baba L’Egba’s mind then was Oloye ‘Lekan Alabi. Sadly, the auspicious time to ask never came.
A reception was once hosted in his honour by Ambassador Ibironke Adefope at Bodija and it was regal! Everyone who mattered came to honour Oloye ‘Lekan Alabi. Reporting the event for City People then, one of the most unusual sights was Otunba Adebayo Alao-Akala, the then Deputy Governor of Oyo State. His simplicity was indescribable. Aside driving his convertible BMW, he came in a yellow sweatshirt and jeans.
And when he turned 60, it was like everyone else joined the Ibadan establishment to celebrate Oloye ‘Lekan Alabi. Aare Arisekola Also spoke about the celebrant in glowing terms as he emphasized that Oloye Alabi was indeed a man destined for greatness. The party afforded me the opportunity of seeing Alhaja Batile Alake live on stage. Her sonorous voice actually brought great childhood memories of when songs of Batile Alake, Olubowale Ajasco, Alalaye Ilorin and others were regular on the television.
Apart from his respectable dress sense and indepth knowledge of issues, other admirable traits of the late Abese Olubadan were his timeliness and punctuality. He once told me the story of how he had suggested that card be presented to the then military President, General Ibrahim Babangida on the birth of his baby girl back then. It turned out that the picture of where he handed the card over was published in dailies the following day. Apart from personal discipline, working with four Governors of Oyo State obviously rubbed off on him, he never attended an event late. There was a day we had to apologize as we started an event behind schedule at the Premier Hotel, Ibadan. He was about the first guest and after accepting our apologies, he didn’t become vexatious, rather, with a smile he told us that he would be in his room upstairs. He said all we needed to do was put call through to him when we were ready to start the programme.
I stood close by him at certain event and heard Chief Lateef Oyelade praying for Oloye Alabi who had just greeted him in Yoruba, he said “Olubadan o kan o” (may it be your turn to become the Olubadan). Like many of his mentees, I looked forward to seeing him on the exalted Olubadan throne, it was however not to be.
Reflecting on those golden days of celebrity journalism; the Bodija reception, the grand 60th birthday, the laughter of legends now silent; one is reminded that time eventually beckons both the caller and the called. Bola Davies, His Excellency, Otunba Alao-Akala, Aare Arisekola Alao, Chief Lateef Oyelade, Ambassador Adefope and now Oloye himself have all answered that ultimate call. Though the exalted Olubadan throne eluded him, Oloye ’Lekan Alabi leaves behind a legacy as towering as Cocoa House itself. Like his noble forebears – Oyetunde Olundegun, ‘Erin o P’ojo Logun’, and Ekerin Suberu Ajengbe, he came, he saw, he lived with unmatched panache, and he left an indelible mark on the sands of time.
Adejumo sent this piece from Ogbomoso
Opinion
Beyond Deportations: What South Africa’s Immigration Crisis Reveals About Nationhood and Economic Frustration
Published
2 months agoon
July 9, 2026By
Mega IconThe popular saying that “one good turn deserves another” appears increasingly absent from present-day South Africa’s national consciousness. It is difficult not to ask whether many South Africans have forgotten the history of their country’s liberation and the immense sacrifices made by Nigeria and other African nations in the long struggle against apartheid.
For days, I have been deeply troubled by reports of South Africa’s worsening immigration crisis and the forceful, vigilante-style eviction of African migrants, particularly Nigerians. Beyond the headlines are broken families, shattered dreams and livelihoods painstakingly built over many years. It is a painful development that should concern every African who once believed in the ideals of continental solidarity.
Anti-immigrant sentiments in South Africa are not new. For more than two decades, campaigns against foreign nationals have been fuelled by high unemployment, widespread poverty, rising crime and frustration over inadequate public services. Many South Africans believe undocumented immigrants compete with them for jobs, housing, healthcare and social services, thereby denying citizens access to these basic necessities.
Yet, available evidence tells a more complex story. Research has consistently shown that immigrants alone cannot be blamed for South Africa’s economic and social challenges. Reducing such deep-rooted problems to the presence of foreign nationals oversimplifies a crisis that has been decades in the making.
What is often overlooked is the country’s structural economic reality. A significant skills mismatch, coupled with weaknesses in the quality of education, has left many job seekers ill-equipped for the demands of an economy increasingly driven by technology, innovation and specialised skills. This challenge is not peculiar to South Africa. Across much of sub-Saharan Africa, thousands of graduates enter the labour market every year without the technical, vocational and digital competencies employers now demand.
Beyond this, crime, insecurity, systemic corruption and poor governance continue to weigh heavily on South Africa’s economy. The country has one of the highest youth unemployment rates in the world. Persistent violent crime discourages investment, while corruption and the mismanagement of public resources have weakened service delivery, slowed infrastructure development and eroded investor confidence.
Equally significant is the enduring legacy of apartheid. More than three decades after democracy, inequalities in education, housing, infrastructure and economic opportunities remain deeply entrenched. Many Black communities still live with the consequences of decades of institutional discrimination and economic exclusion.
Against this backdrop, blaming undocumented immigrants for South Africa’s economic difficulties amounts to little more than scapegoating. It is a convenient narrative that diverts attention from the country’s more fundamental governance and developmental challenges.
The recurring xenophobic attacks against Nigerians and other African nationals make the situation even more painful. The recent killing of Emeka Iroegbu and Musa Yunana Joe on June 28, 2026, amid rising anti-migrant tensions, is a tragic reminder of how dangerous such sentiments can become.
One cannot help but ask: Is this the same South Africa for which Nigeria and many other African countries stood firmly during the anti-apartheid struggle?
I vividly remember growing up in the 1980s, listening to songs such as Free Mandela and Stop Apartheid in South Africa by iconic Nigerian musicians, including Majek Fashek, Onyeka Onwenu and Sonny Okosun. Those songs dominated the airwaves on NTA and became powerful symbols of African solidarity.
As a child, I even believed Nelson Mandela was Nigerian because Nigerians embraced his cause with such passion.
Mandela was released from prison in 1990 and became South Africa’s first Black President in 1994, bringing an end to decades of institutionalised racial segregation and apartheid. Today, just over three decades later, many Africans who once stood shoulder to shoulder with South Africans in their darkest hour are treated as unwelcome strangers.
History can be painfully ironic.
Perhaps, then, the saying that one good turn deserves another does not always reflect reality. Human beings are capable of repaying kindness with hostility. It is an uncomfortable truth, but one that life repeatedly teaches.
At a personal level, this reminds us to live with fewer expectations and strive for greater self-reliance. A heart that expects little, even after giving much, is less likely to be broken.
At the national level, however, the lesson is far more profound. Nigeria must build a country where its citizens can thrive without feeling compelled to seek survival elsewhere. Studies have shown that the overwhelming motivation behind the Japa phenomenon is the search for better opportunities and improved living conditions. If those opportunities existed at home, many Nigerians would gladly remain and contribute to national development.
The experience in South Africa—and, indeed, recent developments in the United States—demonstrates that immigration policies are shaped by changing political realities. No foreign country offers permanent guarantees.
Although the U.S. Supreme Court recently ruled against President Donald Trump’s executive order seeking to abolish birthright citizenship on constitutional grounds, the episode illustrates that even long-established policies can become subjects of political contestation. A constitutional principle that has existed since 1868 could still become a matter of national debate. That alone should remind us that every nation ultimately prioritises its own interests.
The enduring lesson is simple: no country can offer Nigerians greater long-term security than a well-governed Nigeria.
Nigeria’s greatest asset remains its people. Sustainable national prosperity can only be built through visionary leadership, accountable institutions, respect for the rule of law and responsible citizenship. When government creates an enabling environment and citizens embrace innovation, productivity and accountability, Nigeria can become a destination for investment rather than a source of economic migration.
As dozens of Nigerians return home following their repatriation from South Africa, government must move beyond sympathy and symbolic gestures. Some have returned with nothing more than the clothes they wore and a single travelling bag, leaving behind businesses, investments and years of hard work. Their return is not merely a journey home; for many, it is the painful collapse of dreams painstakingly built over decades. They deserve meaningful support to rebuild their lives and contribute productively to the nation’s economy once again.
History teaches that nations are strengthened not by chasing away strangers but by creating opportunities for their own citizens. Nigeria must therefore draw the right lessons from South Africa’s painful experience. Rather than exporting its brightest minds in search of survival, it should become a country where talent is rewarded, enterprise is encouraged and hope no longer requires a passport. Only then will Nigeria become not merely the giant of Africa by population, but by the quality of life it offers its people.
Olusegun Hassan, Ph.D
Public Policy Analyst and Social Commentator