The Nigeria revenue service has reported a sharp increase in oil tax collections, with revenue climbing to N6.8tn in 2025, up from N5.8tn in 2024.
According to the agency, the 19 per cent year-on-year growth was driven by improved upstream profitability, tighter compliance measures and stronger enforcement across the petroleum sector.
Oil tax receipts, which cover Petroleum profits tax, hydrocarbon tax and company income tax from upstream operations, benefited from improved remittances by international oil companies and joint venture operators.
Some of which include those linked to the Nigerian National Petroleum Company Limited.
Company income tax from upstream petroleum activities accounted for the largest share of collections during the year.
Foreign petroleum profits tax and hydrocarbon tax receipts also made significant contributions, while local remittances from joint ventures formed the remaining portion.
Monthly collections showed wide fluctuations, with July recording the strongest inflow of the year, while January posted the weakest performance.
According to the data presented to the Federation Account Allocation Committee, peak months were largely driven by large upstream tax settlements.
Beyond oil, non-oil revenue recorded stronger expansion, rising from N15.9tn in 2024 to N21.5tn in 2025, representing a 35 per cent increase.
Combined oil and non-oil collections pushed total revenue generated by the Service to about N28.3tn for the year.
The agency attributed the performance to ongoing tax reforms, improved automation, enhanced audit processes and stricter enforcement aimed at reducing leakages.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that crude oil production averaged between 1.4 million and 1.5 million barrels per day in 2025.
Despite only moderate output recovery, oil tax revenue expanded significantly, indicating stronger earnings and improved fiscal efficiency.
