Business
Strong tax and oil revenue growth boosts government finances
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria’s fiscal position has received a significant boost in 2026 as stronger tax collections and improved oil revenues continue to drive government earnings, reinforcing confidence in the country’s ongoing economic reforms and revenue diversification efforts.
The robust revenue performance has strengthened public finances across all levels of government, providing additional resources for infrastructure development, debt servicing, social programmes and budget implementation. Economic analysts say the trend reflects the early gains from reforms introduced by the Federal Government to improve revenue generation, reduce leakages and enhance efficiency within key revenue-collecting agencies.
Recent figures indicate that revenue inflows have remained above expectations, supported by increased collections from taxes, customs duties and petroleum-related earnings. The performance comes at a time when authorities are seeking to reduce the country’s dependence on borrowing while creating a more sustainable fiscal framework.
Tax revenue has emerged as one of the strongest contributors to government earnings. Improved compliance measures, digital tax administration systems and broader taxpayer registration initiatives have significantly enhanced collections from both individuals and businesses.
Officials attribute the growth to ongoing efforts by tax authorities to strengthen enforcement, close loopholes and expand the tax net without imposing excessive burdens on compliant taxpayers. The adoption of technology-driven systems has also improved transparency and reduced revenue leakages that previously undermined government collections.
Analysts note that the growing contribution of non-oil taxes is a positive signal for the economy, as it demonstrates progress toward building a more diversified revenue base. For decades, Nigeria’s fiscal fortunes have been largely tied to crude oil exports, leaving government finances vulnerable to swings in global energy markets.
Alongside stronger tax collections, oil revenues have recorded a notable rebound due to improvements in crude oil production and export earnings. Increased output levels, enhanced security around oil infrastructure and efforts to combat crude theft have contributed to higher petroleum revenues flowing into government coffers.
The impact of foreign exchange reforms has also increased the naira value of oil receipts, further strengthening public revenues. As crude exports are largely denominated in dollars, exchange-rate adjustments have translated into larger inflows when converted to local currency.
Industry experts say ongoing investments in the oil and gas sector, coupled with improved operational efficiency, have helped support the recovery in earnings. The improved performance is expected to continue if production targets are maintained and disruptions remain limited.
The revenue surge has translated into stronger allocations to the Federal Government, states and local governments through the Federation Account Allocation Committee (FAAC). Higher allocations have improved liquidity across the public sector, enabling governments to meet financial obligations and undertake development projects.
Several state governments have benefited from the increased inflows, with many reporting stronger fiscal positions and improved capacity to fund infrastructure, education, healthcare and other public services. Local governments have also seen an increase in available resources for grassroots development programmes.
Economists argue that the improved revenue environment provides a rare opportunity for governments to invest in productive sectors capable of stimulating economic growth and creating jobs. They emphasize that increased revenues should be directed toward capital projects and economic development initiatives rather than being consumed largely by recurrent expenditure.
Despite the positive outlook, experts caution that challenges remain. Nigeria’s revenue-to-GDP ratio continues to rank among the lowest in emerging markets, suggesting considerable room for improvement in domestic revenue mobilization.
Concerns also persist about the continued reliance on oil revenues, which remain vulnerable to global price volatility, geopolitical tensions and production disruptions. While recent gains are encouraging, analysts stress that long-term fiscal stability will depend on sustaining reforms and expanding non-oil revenue sources.
Public finance specialists have also called for greater transparency and accountability in the management of government revenues. They argue that citizens should see tangible benefits from higher collections through improved infrastructure, better public services and stronger economic opportunities.
Looking ahead, economic observers expect revenue growth to remain strong through the remainder of 2026, supported by ongoing tax reforms, improved oil sector performance and broader economic recovery efforts. However, they stress that maintaining momentum will require continued policy discipline and a commitment to deepening structural reforms.
For policymakers, the challenge is no longer simply generating more revenue but ensuring that the gains are effectively managed and translated into sustainable economic development. If current trends are maintained, Nigeria could strengthen its fiscal position significantly while reducing its vulnerability to external shocks and creating a more resilient foundation for long-term growth.
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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