Nigeria doubles tax revenue to ₦31.9T, secures $6B for infrastructure, agriculture, and reforms, positioning itself as Africa’s economic leader.
Home to over 220 million people and accounting for 13% of Africa’s GDP, Nigeria remains the continent’s largest economy and most populous nation. The African Development Bank’s (AfDB) 2025 Country Focus Report reveals that Nigeria has doubled its federal revenue in just one year, reduced its fiscal deficit, and attracted billions in strategic investment.
In 2024, government revenues surged from ₦16.8 trillion ($10.92 billion, 7.2% of GDP) to ₦31.9 trillion ($20.74 billion, 11.5% of GDP) thanks to comprehensive fiscal reforms, the removal of fuel subsidies, and exchange rate unification. The fiscal deficit dropped to 4.3% of GDP and is projected to reach 4.1% in 2025, while the AfDB and international partners have committed $6.16 billion to support the country’s national development strategy.
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Beyond macroeconomic indicators, Nigeria’s political leadership has pushed through transformative policies aimed at diversifying the economy, mobilizing domestic resources, and modernizing strategic sectors. These moves are designed to reduce the country’s long-standing dependence on oil, which still accounts for a significant share of national revenue. Nigeria faces an infrastructure investment gap estimated at $100 billion. To address this, the AfDB is prioritizing projects that unlock trade potential and boost regional integration. Among the flagship initiatives is the Lagos–Abidjan Highway, a 1,028-kilometre transnational coastal road with $15.6 billion in investment commitments. Once completed, it will connect five West African countries, covering 75% of the region’s commercial activity.
In the power sector, reforms have added 500 MW to the national grid, increasing electricity access from 55% to 60% of the population since 2022, while attracting $1.2 billion in private investment. The April 2025 launch of Special Agro-Industrial Processing Zones (SAPZ), backed by $538 million in funding, signals a shift toward high-value, competitive agriculture. The programme aims to reduce post-harvest losses, expand export capacity, and create rural jobs. At the same time, the National Social Safety Net Programme reached 32.2 million beneficiaries in January 2025, reflecting a comprehensive approach to poverty reduction and social inclusion. Nigeria’s reforms are resonating far beyond its borders: macroeconomic stability in Lagos strengthens business confidence in Accra and Abidjan, while agricultural productivity in Kaduna influences food security across West Africa.
The next two years will be decisive. Sustaining GDP growth at 3.2%, raising the tax-to-GDP ratio to 14%, expanding SAPZ Phase II to 28 states with $3 billion in private investment, and securing final financing for the Lagos–Abidjan Corridor will be key milestones. Nigeria’s experience shows that even in complex development environments, policy consistency, institutional backing, and coordinated investment can deliver profound transformation. As the AfDB underscores, “When Nigeria moves forward, Africa moves forward.”