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Taxes cushion oil revenue slump as FIRS grows collections

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..Corporate taxes trump oil earnings for first time on record

Although taxes now seem to be the main revenue source of the government, it would need even more attention to become the new oil as the amount generated from the source remains low relative to government spending
For the first time in nearly half a century, non-oil revenue usurped petrodollars to become the main source of the Nigerian federal government’s revenue in 2021 and that dominance has grown since then.

So dominant has non-oil revenue become compared to oil that in the recently published financial accounts of the federal government, Corporate Income Tax (CIT), one of the three main sources of non-oil income, eclipsed total earnings from oil in the first four months of 2022.

In the four-month period through April, CIT alone (N298 billion) contributed more to the federal government’s retained revenue than oil revenue at N285.38 billion.

That’s the first time ever that corporate taxes would be higher than revenue from crude oil export, according to data sourced from the country’s budget implementation documents.

FIRS

When the revenues from other non-oil income sources from Value Added Tax to Customs revenue are added, the total comes to N632.5 billion, more than double the amount generated from oil in the period under review.

The unprecedented turn of events highlights the country’s dwindling oil revenue and the rise in non-oil revenue, even though the former is more significant.

Oil revenues have more than halved from about N4 trillion in 2014 to less than N2 trillion annually and could fall even lower this year as a growing petrol subsidy bill and low production levels eat into the government’s earnings from oil.

The state-owned Nigerian National Petroleum Company Limited (NNPC), which is reported to have recorded a N704 billion deficit within the first six months of 2022, has not made any contribution to the Federation Account this year.

The government expects the expensive petrol subsidy which has become a burden to the NNPC to gulp N4 trillion this year, a quarter of the budget. The World Bank and International Monetary Fund (IMF) think it will be higher and are pegging their estimates at N5 trillion and N6 trillion respectively.

Crude oil production losses have also jumped with the country losing $650.7 million to crude oil losses due to force majeure between April and May 2022.

Taxes have had to fill up part of the huge gap vacated by the slump in oil revenue in monthly allocations to the three tiers of government.

The Federal Inland Revenue Service (FIRS), which collects taxes on behalf of the government, has contributed up to 60 percent of the money distributed by the Federal Account Allocation Committee to the federal, states, and local governments this year.

Last year, the FIRS contributed N5.298 trillion or 59.45 percent of the N8.912 trillion allocated to the three tiers of government.

The rising contribution of the agency is due to improved tax collections and reforms specifically with the 50 percent increase in VAT.

The FIRS has seen its collection rise from N5.26 trillion in 2019 to N6.4 trillion in 2021. Under the leadership of Muhammad Nami, its chairman, the agency is said to be more technology-oriented and there is a renewed focus on plugging leakages in tax collection.

Although taxes now seem to be the main revenue source of the government, it would need even more attention to become the new oil as the amount generated from the source remains low relative to government spending.

“While some of the reforms to improve tax revenues like the VAT increase has helped boost non-oil revenue, the main reason why tax receipts can outpace oil revenues is due primarily to the slump in oil revenues,” said Taiwo Oyedele, a partner at Lagos-based consulting firm PricewaterhouseCoopers.

“We can only say we have successfully replaced oil income with non-oil revenue when the latter can fund the majority of our expenditure,” Oyedele said.

For now, non-oil income can’t fund even a quarter of the government’s expenditure. Last year, the total cash generated from non-oil sources came to only 12 percent of the government’s spending.

In the first four months of 2022, the N632.5 billion generated from non-oil sources was a paltry 13.8 percent of the N4.556 trillion spent by the federal government in the period.

The government has had to rely largely on borrowing to meet its spending obligations, so much so that its debt service cost as a percentage of revenues has now exceeded 100 percent.

Despite the progress made in reforming the country’s tax system, analysts say there’s still more work to be done to further grow tax revenues to the point where the government relies less on oil revenues.

In 2021, the country’s tax to GDP ratio was only 7 percent, according to World Bank data, compared to the frontier market average of 20 percent.

“The FIRS needs adequate funding to be able to deploy technology and generate more revenue for the country as opposed to constant borrowing and to help fund the budgets of the three tiers of government,” a source said.

Culled from BusinessDay Newspaper


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Abuja

Mercedes G63 Kills Six Cows in Abuja Highway Crash

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A luxury Mercedes-Benz G-Class G63 AMG was involved in a late-night crash on a major highway in Abuja, killing six cows and sparking renewed concerns over road safety and enforcement of grazing laws in the Federal Capital Territory.
The incident occurred around 8 p.m. on Monday,

according to eyewitness accounts, when the high-speed SUV collided with a herd of cows that had reportedly strayed onto the roadway. A video circulating on social media shows the aftermath, with the white cows lying across the dark highway as traffic officials worked to manage the situation.


As of the time of filing this report, there were no confirmed injuries to the driver or any passengers in the vehicle. Unverified reports on social media suggested that the SUV sustained only minor damage despite the severity of the collision.


The accident has reignited debates over the continued presence of cattle on major roads in Abuja, despite the 2017 ban on open grazing introduced by the Federal Capital Territory Administration. The policy was designed to curb frequent clashes between herders and communities, as well as prevent traffic disruptions and accidents caused by roaming livestock.

FIRS


Residents and road users have repeatedly raised concerns about the enforcement of the grazing ban, noting that cows are still often seen along highways and within urban areas of the capital. Monday night’s crash is the latest in a series of such incidents, highlighting ongoing gaps in regulation and compliance.


Authorities are yet to release an official statement on the crash or confirm whether any action will be taken regarding the presence of the cattle on the highway.

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Job Vancancy: Moniepoint Job Vacancies in Abuja and North Central Nigeria

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Research Interviewers Job in Nigeria – Jhpiego Hiring Across 36 States & FCT
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Leading Nigerian fintech company Moniepoint has announced six new job openings across Abuja and several states in the North Central region, expanding its workforce in compliance, technical operations, sales, and security management.

The vacancies cut across multiple departments, reflecting the company’s continued growth in agent banking, SME solutions, and digital financial infrastructure services.

Available Positions

Field Risk & Internal Control Officer (North Central)

  • Team: Compliance
  • Location: FCT, Nigeria
    The role focuses on monitoring operational risks, enforcing internal control standards, and ensuring compliance across field operations in the region.

Apply Here

Hardware Engineer

  • Team: Advanced Technical Operations
  • Location: FCT, Nigeria
    Successful candidates will handle hardware installation, maintenance, troubleshooting, and technical support for field operations.

Apply Here

FIRS

Implementation Officer (North Central)

  • Team: Moniebook Business Management Tools
  • Locations: Benue, Plateau, FCT
    This role involves onboarding merchants and ensuring smooth deployment of Moniepoint’s business tools across assigned regions.

Apply Here

Inbound Sales Officer (Abuja)

  • Team: Moniebook Business Management Tools
  • Location: FCT, Nigeria
    The position focuses on handling inbound customer inquiries, converting leads, and supporting sales growth for Moniepoint business solutions.

Apply Here

Regional Lead, Corporate Security (North)

  • Team: Moniepoint MFB
  • Locations: FCT, Kano
    The role oversees corporate security operations, risk prevention strategies, and protection of company assets across northern Nigeria.

Apply Here

Regional Lead, Field Risk & Internal Control (North)

  • Team: Compliance
  • Location: FCT, Nigeria
    This leadership position is responsible for coordinating regional risk management teams and strengthening internal control systems.

Apply Here

The hiring drive comes as fintech companies in Nigeria continue to expand their physical and digital operations across underserved regions, particularly in agent banking and SME support services.

Moniepoint, one of the fastest-growing fintech firms in the country, has steadily increased recruitment in technical, compliance, and field operations roles over the past year.

With these openings, Moniepoint is strengthening its presence in Abuja and northern Nigeria while scaling its financial services infrastructure across the country.

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Business

Nigerians Slam Moniepoint CEO Over ‘Talent Quality’ Remarks Amid Hiring Debate

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Comments by Tosin Eniolorunda, CEO of Moniepoint, have sparked a heated debate online after he questioned the quality of Nigeria’s talent pool while discussing his company’s hiring challenges.


Speaking at the The Platform Nigeria on May 1, Eniolorunda said the fintech firm had advertised over 500 vacancies since 2024 but struggled to find qualified local candidates. He revealed that by 2025, the company reversed its local-only hiring policy due to the shortage.


I used to feel Nigerians are really bright… but we are still struggling to find Nigerians to fill those roles. They don’t meet global standards,” he said, attributing the gap to factors such as social media distractions, cybercrime, hookup culture, and weaknesses in the education system.

Backlash and Counterarguments



His remarks triggered swift backlash from Nigerians, particularly within the tech community, with many accusing local companies of failing to invest in talent development.

FIRS


Critics argued that unlike global firms, Nigerian tech companies rarely offer structured, paid internship programs or training pipelines to groom young professionals. Some pointed to examples of international companies like Oracle Corporation, where internships and early talent programs serve as entry points into full-time roles.


Others shared personal experiences of being rejected by local firms despite strong resumes, while noting that Nigerian professionals continue to secure roles in global companies such as Amazon.


A recurring sentiment online was that many Nigerian companies demand “global-standard talent” but are unwilling to offer competitive compensation or career development opportunities.

Industry Perspective



Supporters of Eniolorunda’s stance, however, pointed to the realities of scaling a fast-growing fintech company in a competitive global market. They cited brain drain, limited specialized skills, and increasing demand for top-tier expertise as genuine challenges facing Nigerian startups.


Analysts say the controversy highlights a broader issue within Nigeria’s tech ecosystem balancing expectations between employers and job seekers, while addressing gaps in education, training, and remuneration.



The debate mirrors ongoing tensions around talent development, compensation, and hiring practices in Nigeria’s fast-evolving tech sector.

As companies expand and compete globally, the question of how to build, retain, and fairly reward talent is likely to remain a central issue.

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Outrage as Soldier Assaults Journalist Over Traffic Dispute in Lagos

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A Nigerian soldier has allegedly assaulted a journalist, Fakoyejo Olalekan, during a traffic control operation in Lagos State, triggering widespread public condemnation after video footage of the incident surfaced online.
The clash occurred on May 2 near Pleasant Event Centre in Ikeja, where personnel of the Nigerian Army were reportedly directing heavy traffic.


According to eyewitness accounts, the altercation began after Fakoyejo remarked to passengers that a soldier’s handling of a motorcyclist had caused an unnecessary delay. The comment allegedly angered one of the soldiers, who ordered everyone out of the vehicle.


The situation escalated when the soldier reportedly slapped and shoved the journalist, and briefly reached for a piece of wood before bystanders intervened to prevent further escalation.


Video clips circulating on social media show at least two soldiers involved in the confrontation. During the incident, Fakoyejo’s phone screen was also seen shattered on the pavement. No serious injuries were reported.

FIRS


The footage has since triggered widespread criticism online, with many users calling for accountability and questioning the conduct of military personnel during civilian traffic enforcement duties.


As of May 4, the Nigerian Army had yet to issue an official response despite being tagged in multiple public complaints and posts about the incident.

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Outrage as DSS Arraigns Chidiebere Justice Mark Over Alleged Cybercrime, Military Incitement

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The Department of State Services (DSS) on Monday arraigned Chidiebere Justice Mark, popularly known as Justice Crack, before the Federal High Court sitting in Abuja on a three-count charge bordering on cybercrime and alleged incitement against the military.

Mark was earlier arrested by the Nigerian Army over a viral video and accompanying statements he shared via his X (formerly Twitter) handle, @JusticeCrack, in which he reportedly alleged inadequate feeding of Nigerian soldiers.

According to the charge sheet, the defendant is accused of knowingly circulating false information intended to provoke public annoyance, ill will, and hatred among citizens.

FIRS

Details of Charges

Count One alleges that on April 28, 2026, Mark disseminated information on social media regarding poor feeding conditions of Nigerian Army personnel, which authorities claim he knew to be false. The offence is said to contravene Section 24(1)(b) of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2015 (as amended).

Count Two states that the accused published a viral video and statements about the Nigerian Army that triggered widespread negative reactions and were likely to cause fear and a breach of peace. This charge is brought under Section 59 of the Criminal Code Act.

Count Three accuses Mark of attempting to commit a felony by circulating what authorities described as derogatory content about the Army, also linked to potential public unrest, punishable under Section 509 of the Criminal Code Act.

Court Proceedings

Presiding judge, Joyce Abdulmalik, adjourned the case to May 25, 2026, for trial and possible hearing of a bail application. The court also ordered that the defendant be remanded in DSS custody pending further proceedings.

Public Reaction

The arraignment has sparked widespread reactions across social media, with civil rights advocates and concerned citizens debating issues around freedom of expression, national security, and the limits of online speech in Nigeria.

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