Non-oil revenue now accounts for 75 per cent of federally collected funds, a March 2026 report by Quartus Economics has stated.
This marks a major fiscal milestone and the end of a 14-year dependence on crude oil.
According to the report, the country’s revenue structure has shifted significantly with tax revenue now contributing 87 per cent of total federal income, while oil’s share has dropped to just 27 per cent.
“This transformation signals a fundamental change in Nigeria’s fiscal foundations,” the report stated.
“The country has moved from fragile, oil-dependent revenues to a system largely driven by non-oil and tax sources, reducing vulnerability to global commodity shocks.”
Historically, oil revenue dominated Nigeria’s federal accounts. Between 2010 and 2014, crude oil contributed roughly three-quarters of total revenue, leaving the country highly exposed to fluctuations in global oil prices.
The surge in non-oil revenue has been driven by a combination of tax reforms, administrative improvements, and policy measures, including a VAT increase from 5 per cent to 7.5 per cent and the centralisation of oil and gas revenue under Executive Order 9, which boosted remittances of royalties by over N200bn in February 2026.
“Non-oil revenue growth reflects the government’s commitment to building durable and sustainable fiscal foundations,” the report noted.
“Citizens now have greater assurance that federal finances are less dependent on oil price swings, and the revenue base can support public investments across all tiers of government.”
