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Almost Half of Nigeria’s Revenue Goes to Debt Servicing – Oyedele
Nigeria now spends less than 50 percent of her revenue on debt servicing, down from 90 percent where it was two years ago.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee (FPTRC), Taiwo Oyedele, made the disclosure in Lagos on Monday, while presenting his keynote at PwC’s Executive Summit on Nigeria’s Tax Reform.
It held under the theme “The New Tax Era: What Nigeria’s Tax Reform Means to Individuals and Businesses”, and Oyedele highighted that the government was spending almost 97 percent of its revenue on debt servicing before the economic reforms.
“We’ve cleared unmet forex futures that were more than $7bn. And we moved from under $4 bn external reserve to over $20bn today. Budget deficit is declining, and we’re spending more on infrastructure.
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“Tax to GDP ratio moved from under 10 percent is now 13.5 percent in two years. Instead of 97 percent, service debt is now under 50 percent in two years. We no longer print money to spend. Rather, we’ve paid down part of the ways and means that the previous administration printed,” he stated.
He explained that the country’s currency could have become worthless if the Federal Government had not embarked on the current economic reforms.
According to him, Nigeria was heading in the direction of Zimbabwe and Venezuela, whose economies had collapsed.
“Nigeria today, without reforms, would have looked like that. Bigger deficits, more naira printed. We will have easily over $10bn unmet forwards. Tax to GDP ratio will be less than 10 percent. We’ll be spending over 100 percent of our revenue to service debts. You hold money; you will not find PMS to buy. There’ll be more poverty, and there will be more ways and means.
“I thought to bring the currency. I’ll show you. So, this currency, this banknote in my hand, is 100 trillion Zimbabwean dollars. I’m not 100 trillion one notes. This note, at the time I got it, was barely enough to buy a loaf of bread. I gave my friend, whom I got this from, $10 and he is still grateful till tomorrow. This is what would have happened to Nigeria. Nigeria was the road to Venezuela and Zimbabwe.”
According to the FPTRC chair, the country could have reached a $1bn economy by now if the government had begun the ongoing economic reforms a decade ago.
“If some of these reforms that were done in the past two years had been done 10 years ago. I tell you authoritatively today, Nigeria will be a $1bn economy guaranteed. And the price of PMS will be under N300/litre because the exchange rate will be under N300 to the USD.
“We’ve done this analysis over the past 10 years. Comparable balance of payment between Nigeria, Kenya and South Africa. Yet naira has lost six and a half times more value than Kenya shillings and South African rand. If only we had maintained the same level of stability as those two other countries. Nigeria will be a $1tn economy. What that means is the size of the middle class will probably be 10 times what it is. Every single investor in the world will take a seriously enough about,” Oyedele asserted.
He argued that the government was wasting trillions of naira subsidising petrol, spending a large chunk of its revenue to service debt and was just printing naira at will.
“We committed them to subsidise PMS. It still wasn’t enough. NNPC took the taxes they were supposed to pay and they used that as well. It was not enough. They started taking the taxes of the other operators in the industry to also pay for the PMS. It still wasn’t enough. If we had continued till this day, the subsidy regime would have collapsed.
“Naturally, you would hold N100,000; you will not find a litre of PMS to buy. And I said that with all sense of responsibility. Responsibility because we’re running out of fiscal space to deal with the subsidy.
“Many people like you, including myself, knew there was a lot of corruption in it. That’s true. Could we have removed the corruption in the time frame? No. We had a huge budget deficit. We printed over N30tn to spend. We’re not building roads. It wasn’t that we’re building electricity. We were paying salaries,” he emphasised.
“Many people like you, including myself, knew there was a lot of corruption in it. That’s true. Could we have removed the corruption in the time frame? No. We had a huge budget deficit. We printed over N30tn to spend. We’re not building roads. It wasn’t that we’re building electricity. We were paying salaries,” he emphasised.
Oyedele disclosed that only three per cent of informal sector operators could pay taxes in Nigeria.
He explained, “From our analysis, it is only the top three per cent of the informal sector that has the ability to pay. Therefore, in these reforms, we have legally exempted the bottom 97 per cent from paying taxes. Let them breathe. When they grow, they will have the capacity to pay. And many people would ask me, ‘Are you sure that all the companies in Nigeria will not become small?’.
“This will happen anywhere in the world if you create an exemption threshold. People want to force themselves to be under the threshold. Isn’t it because they don’t want to pay tax? It’s hard to pay tax anywhere in the world. Nigerians are not bad people. They’re not worse than people who live in other countries where things work. The difference is the system. So, the system we are building is that if you like to go and lie and say your business is small when it is not, we will find out, and there shall be consequences for those who underdeclare and engage in tax evasion.”
According to the FPTRC chair, the country’s tax is now progressive, and all the major taxes have become progressive.
Oyedele also disclosed that the gazette of the recently signed tax law was being printed in Lagos, and the final copy of the tax would be released to the public afterwards.
Recall that President Bola Tinubu signed four bills into law on June 26, but they would become effective on January 1, 2026.
Also, the Regional Senior Partner, PwC West Market Area, Sam Abu, noted that the reforms embarked on by the government were a good starting point for engaging in that conversation very robustly.
“Policy alone won’t deliver. Real change requires partnership and commitment. It required every single one of us here, the government, business leaders, and private sector individuals, to collaborate and work together to shape what will come up, to shape the kind of society and the kind of business community that we want to operate together, that we want to believe is okay. It requires us to engage with the spirit of these reforms, with sincerity, with integrity and with optimism,” he emphasised.
He said perspectives of stakeholders were critical in ensuring that those reforms take root and deliver on the outcomes that had been promised.
“Everybody has had a part to play in this regard. So, a PWC objective is clear. We want to remove complexity from tax. We want to help our clients anticipate risk and deliver solutions that are practical and tailored to their businesses, so that you, as business leaders, can focus on what you do best, which is making an impact on growing your businesses,” Abu added.
Major highlights of the new tax law are the exemption of employees who earn less than N800,000 annually from the personal income tax, the harmonisation of federal taxes and making the Federal Inland Revenue Service the sole collector of federal taxes.
Meanwhile, Partner and Tax and Regulatory Service Leader, Chijioke Uwaegbute, added that with the new tax law, by January 1, 2026, an entity that is resident abroad will be fully taxed in Nigeria if it is being controlled from the country.
“Control meaning where the board sits and things like that, or it is being effectively managed in Nigeria, being where the people who make the decisions sit. That is potentially a big one.
“Similarly, we have rules around indirect transfers as well. I have a situation where you dispose of or there’s a disposal of the shares of a foreign entity that owns a Nigerian company. And if that disposal means that there’s a change in the ownership of the Nigerian company, that disposal then is seen as a taxable event in Nigeria, not minding the fact that the shares that were disposed of are not of the Nigerian company.
“So all of these rules that we see here are really to reflect some of the advances we’ve seen in other countries, minimise opportunities for avoidance and ensure that Nigeria is able to tax its fair share of taxes,” he said while highlighting major changes in the new tax law.
Well-equipped criminal syndicates are disguising themselves as members of a Federal Government taskforce to steal critical oil infrastructure across Nigeria.
The Nigerian National Petroleum Company Limited (NNPC Ltd) made the revelation, describing it as a disturbing trend in the country’s worsening pipeline vandalism crisis.
According to the state oil major, 24 cases of vandalism had been recorded along sections of the Warri-Kaduna crude oil pipeline corridor since 2025, with about nine kilometres of pipeline already stolen by suspected vandals.
The revelation came as the NNPC Ltd, through its Industry-Wide Security Architecture and its subsidiary, the Nigerian Pipelines and Storage Company, conducted a joint inspection of a vandalised section of pipeline at Pai Community in Kwali Area Council of the Federal Capital Territory (FCT).
The inspection, carried out alongside the Office of the National Security Adviser Special Prosecution Team, the FCT Police Command, the Nigerian Army and other security stakeholders, followed the arrest of three suspected pipeline vandals in the Piri and Pai communities.
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In a statement on Thursday by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, asserted that the inspection was aimed at assessing the extent of damage to the critical national asset, advancing ongoing investigations and reinforcing efforts to combat economic sabotage.
The statement read, “The Nigerian National Petroleum Company Limited through the Industry Wide Security Architecture and Nigerian Pipelines & Storage Company in collaboration with the Office of the National Security Adviser Special Prosecution Team, the Federal Capital Territory Police Command, the Nigerian Army and other security stakeholders, on Tuesday conducted a joint inspection of a vandalised section of the NPSC crude oil pipeline at Pai Community in Kwali Area Council of the FCT, Abuja.
“The high-level inspection was undertaken to assess the extent of damage to critical national assets, advance ongoing investigations, and reinforce coordinated efforts to combat economic sabotage and safeguard Nigeria’s strategic energy infrastructure.
“The visit followed the arrest of three suspected pipeline vandals in the Piri and Pai communities through a joint operation involving the ONSA Special Prosecution Team, the FCT Police Command, and the NNPC Ltd’s Industry-Wide Security Architecture.”
According to Odeh, the Nigerian Pipelines and Storage Company, a subsidiary of the NNPC Ltd, owns and manages more than 5,000 kilometres of crude oil and petroleum products pipelines across the country.
He expressed sadness that pipeline theft across the network has intensified in recent years.
“NPSC, a subsidiary of NNPC Ltd, owns more than 5,000km of crude oil and petroleum products pipeline network. Pipeline theft across NPSC’s network has been on the increase since 2024.
“Well-equipped criminals disguising themselves as the ‘NNPC/Federal Government Taskforce for Recovery of Abandoned Pipelines’ connive with locals to dig out and steal these pipelines,” the statement noted.
The company disclosed that 19 incidents were recorded in 2025 alone.
“In 2025, a total of 19 cases were reported, with about 9km of pipeline section stolen along the Enugu-Makurdi-Yola corridor and between Piri and Izom along the Warri-Kaduna pipeline corridors.
“So far in 2026, five cases have been reported at Piri-Kwali and Gwagwalada along the Warri-Kaduna crude oil pipeline segment and at Badanga along the Jos-Gombe pipeline corridor,” it added.
The affected infrastructure serves as a strategic route for transporting crude oil from the Warri Refining and Petrochemical Company (WRPC) to the Kaduna Refining and Petrochemical Company (KRPC).
Speaking during the inspection, the Group Chief Executive Officer of NNPC Ltd, Bashir Ojulari, represented by the company’s Chief Interface Officer, Dahiru Sani-Gwarzo, said the arrests marked an important breakthrough in the fight against pipeline sabotage.
“The industry-wide security architecture has been actively pursuing criminal elements involved in the sabotage of our energy infrastructure. Those apprehended are only a small part of a larger network.
“Our focus remains on identifying and bringing to justice the masterminds and sponsors behind these criminal activities.
“Beyond the significant economic losses they cause, such acts undermine national development, energy security and investor confidence.
“We will continue to work closely with our security partners to ensure these crimes are decisively addressed,” he said.
On his part, the Commissioner of Police, FCT Command, CP Ahmed Muhammed Sanusi, said the arrests demonstrated the resolve of security agencies to dismantle organised criminal groups targeting national infrastructure.
“The operation demonstrates our collective determination to protect critical national assets and dismantle criminal syndicates involved in pipeline vandalism.
“The suspects were apprehended following intensive intelligence gathering, surveillance operations and targeted patrols after reports of interference with sections of the pipeline.
“Our investigations have already generated valuable leads regarding the sponsors and receivers of the vandalised materials.
“We want to assure Nigerians that all individuals connected to these criminal activities will be identified and prosecuted in accordance with the law,” Sanusi stated.
Also speaking, the Director of Energy Security at the Office of the National Security Adviser, Goodluck Ebele, urged Nigerians to support ongoing efforts by providing timely information to security agencies.
“Public vigilance and cooperation remain critical to protecting national assets and strengthening Nigeria’s energy security.
“We appeal to citizens living around these facilities to report suspicious activities promptly. Pipeline vandalism is not a victimless crime; it affects national revenue, energy supply and economic development,” he said.
Representing the Nigerian Army, Lt. Col. J.O. Ajongbo reaffirmed the military’s commitment to safeguarding oil and gas infrastructure nationwide.
“We remain committed to working closely with NNPC Ltd and all relevant agencies to secure critical energy infrastructure across the country.
“The protection of these assets is a national responsibility, and the military will continue to play its part in ensuring that criminal elements do not succeed in their attempts to sabotage the economy,” he stated.
Similarly, the Deputy Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Sesi Whingan, pledged legislative support to strengthen deterrence against pipeline vandalism.
“We will continue to support measures that enhance the legal and regulatory framework needed to combat pipeline vandalism.
“Those who engage in economic sabotage must understand that there will be consequences, and we will work with relevant institutions to ensure that our laws serve as effective deterrents,” he said.
Pipeline vandalism has remained one of the biggest challenges confronting Nigeria’s oil and gas sector, contributing to production losses, environmental degradation and reduced revenues.
While much of the public attention has focused on crude theft in the Niger Delta, the latest incidents suggest that criminal networks are increasingly targeting pipeline infrastructure in other parts of the country.
President Bola Tinubu has announced that Nigerian security forces have neutralised more than 13,000 terrorists within the past 12 months, describing it as a major breakthrough in the country’s ongoing fight against insecurity.
The President made the disclosure on Friday during his Democracy Day address to the nation, where he outlined progress made by his administration in tackling terrorism, banditry, and other violent crimes across the country.
Tinubu said Nigeria has moved beyond routine military training exercises with international allies and is now focused on more precise and effective operations against terrorist groups.
He cited a recent successful military operation in Arege, Borno State, where troops reportedly degraded a command centre belonging to the Islamic State West Africa Province (ISWAP).
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“We have moved from training with our allies, the United States, France and other European countries, to precision targetting. In Arege, Borno State, we degraded ISWAP’s command centre. Terror-related deaths are down by 81 per cent since 2015. Over 13,000 terrorists have been neutralised in the past year,” he said.
The President also emphasized that the Federal Government remains committed to non-kinetic approaches in addressing insecurity, including encouraging repentant insurgents to surrender and reintegrate into society.
He revealed that more than 124,000 insurgents and their dependants have surrendered since 2023 through the government’s Operation Safe Corridor programme.
“But we also keep the door of surrender open. Over 124,000 fighters and dependants have laid down their arms since 2023 through Operation Safe Corridor,” Tinubu stated.
Warning criminals, the President said bandits, kidnappers, and sponsors of terrorism must embrace peace or face the full force of the law.
“To bandits, kidnappers and sponsors of terror: surrender or face the full force of the Nigerian state. These windows of surrender will not remain open forever. No mercy will be shown to those who trade in the blood of Nigerians,” he warned.
Tinubu further urged Nigerians to remain united in the face of security challenges, stressing that criminal activities should not be viewed through ethnic or regional lines.
“At a time like this, let us not assign blame or point fingers. Crime has no ethnicity. We must stand united and be assured that the enemies of our nation shall soon be history. We will triumph over terror and continue to build a more prosperous nation,” he added.
President Bola Tinubu has said that democratic governance must translate into tangible economic benefits for citizens, stressing that “democracy must be felt in the pocket” as his administration continues to implement reforms aimed at improving the lives of Nigerians.
Speaking in his Democracy Day address on Friday, the President said ongoing infrastructure projects across the country are helping to connect producers to markets while creating opportunities for enterprise and employment.
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Tinubu also disclosed that the National Agricultural Development Fund is set to deploy 10,000 tractors over the next five years to boost agricultural productivity and strengthen food production nationwide.
Highlighting some of the gains recorded by his administration, the President revealed that more than 1,000 small and medium-sized enterprises (SMEs) have been certified for export.
He added that non-oil exports grew by 21 per cent in the past year, reflecting efforts to diversify Nigeria’s economy beyond crude oil.
Despite these achievements, Tinubu acknowledged that many Nigerians are still grappling with economic hardship.
He said his administration remains focused on reducing inflation, expanding food production, creating jobs, improving living standards and rebuilding confidence in the economy.
According to him, the government is working to move the country “from uncertainty to stability,” with the next phase of reforms aimed at accelerating economic growth and ensuring that progress is felt at household and community levels across all regions.
The President further stated that his administration is pursuing financial autonomy for Nigeria’s 774 local government councils, arguing that weak grassroots governance has contributed to development challenges and insecurity in parts of the country.
Tinubu maintained that strengthening local government administration is crucial to addressing insecurity and improving service delivery, adding that the Renewed Hope Agenda is designed to ensure that the dividends of governance reach every Nigerian.
He reiterated his commitment to building a more stable and prosperous nation where the benefits of democracy are visible in the everyday lives of citizens.
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