President Bola Tinubu said Nigeria’s tax-to-GDP ratio has climbed to 13.5 per cent, up from less than 10 percent, while the debt service-to-revenue ratio has been cut to below 50 per cent, down from 97 per cent two years ago.
In his Independence Day address, Tinubu said the new tax reforms are broadening the fiscal base without imposing higher rates on existing payers, while also granting relief to low-income earners.
“Our tax-to-GDP ratio has risen to 13.5 percent from less than 10 percent. The ratio is expected to increase further when the new tax law takes effect in January,” he said.
The president said fiscal reforms have enabled the government to repay the Central Bank’s Ways and Means overdrafts, which previously fueled inflation and destabilised the economy. He added that the removal of the petrol subsidy has freed up trillions of naira for real sector investments and social welfare programmes.
Tinubu also highlighted that the economy grew by 4.23 per cent in the second quarter of 2025, the fastest pace in four years and above the International Monetary Fund’s 3.4 per cent projection. He said inflation has declined to 20.12 per cent in August 2025, the lowest in three years, while external reserves rose to $42.03 billion in September, the highest since 2019.
On trade performance, the president noted that Nigeria recorded a ₦7.46 trillion trade surplus in the second quarter of 2025, representing a 44.3 percent increase from a year earlier. He said exports outpaced imports, with manufactured goods exported from Nigeria jumping by 173 per cent.
Tinubu stressed that non-oil exports now account for 48 per cent of the country’s trade, compared to oil exports at 52 per cent, an indication that Nigeria is diversifying its economy and expanding foreign exchange earnings beyond oil and gas
