Nigeria’s foreign currency tax receipts reached a historic N6.33 trillion (approx. $4.59 billion) in 2025, according to data released by the National Bureau of Statistics (NBS).
The figure represents a 27.3% surge from the N4.97 trillion recorded in 2024, highlighting the government’s increasing reliance on dollar-linked inflows amid persistent currency volatility.
Foreign currency payments contributed approximately 35.5% of the total N17.83 trillion collected from Value Added Tax (VAT) and Company Income Tax (CIT) during the 2025 fiscal year.
The Central Bank of Nigeria (CBN) acted as a primary catalyst for this growth through its comprehensive exchange rate liberalization and the unification of the foreign exchange market.
By allowing the naira to reflect market realities, the CBN significantly increased the local value of all taxes paid in foreign currencies by multinational entities and exporters.
Furthermore, the apex bank’s maintenance of a tight monetary policy and market-reflective currency regime throughout 2025 maximized the naira-equivalent gains from these dollar-denominated revenue streams.
The NBS report shows that foreign-currency CIT alone climbed to N4.23 trillion, while foreign-currency VAT grew to N2.10 trillion, fueled by sectors like oil, telecoms, and finance.
Experts suggest that while the N6.33 trillion reflects enhanced collection efficiency, it also highlights the “revaluation effect” where the weaker naira makes dollar-linked tax payments appear significantly larger.
The federal government intends to utilize this liquidity to fund the 2026 budget deficit and reduce the national debt-to-GDP ratio, which is currently projected to settle at 34.5%.
Total tax revenue for 2026 is targeted at N40.7 trillion, with foreign currency receipts now forming a cornerstone of the nation’s strategy to achieve a 10.2% tax-to-GDP ratio.
