The federal government generated a total of N8.09 trillion between January and November 2025, according to an analysis of documents from the Federal Account Allocation Committee (FAAC). The revenue was primarily driven by Value Added Tax (VAT) and the Electronic Money Transfer Levy (EMTL), which contributed N7.69 trillion and N403.68 billion, respectively, over the period.
Monthly VAT collections
The analysis of VAT collections shows notable month-to-month variations. In January 2025, the government collected N771.86 billion, but this figure fell to N654.46 billion in February and N637.61 billion in March. A slight recovery occurred in April, with N642.26 billion, followed by an increase to N742.82 billion in May.
Collections dipped again to N678.16 billion in June, before gradually rising to N687.9 billion in July and N722.61 billion in August. September 2025 saw a significant increase to N872.63 billion, while October recorded N719.82 billion and November fell sharply to N563.04 billion. Analysts attribute these fluctuations to seasonal economic activity, business cycles, and government policy interventions affecting VAT revenue.
EMTL collections
The Electronic Money Transfer Levy also showed variable monthly trends. January recorded N21.40 billion, increasing to N36.63 billion in February, before falling to N26.01 billion in March. April collection jumped to N40.48 billion, then dropped to N28.82 billion in May. June brought a modest rise to N30 billion, while July spiked to N39.16 billion, before August saw a decline to N33.68 billion.
The government has increasingly relied on digital transaction levies, like EMTL, to boost revenue amid declining oil earnings and fluctuating VAT inflows.
Implications for fiscal planning
From a business and economic perspective, the FAAC data underscores the importance of non-oil revenue streams in Nigeria’s fiscal landscape. While VAT remains the dominant contributor, the rise of digital levies reflects the ongoing shift toward formalising and diversifying government revenue sources. Experts stress that consistent policy measures, effective enforcement, and economic stability are key to sustaining and growing these revenue streams.
