Armed Forces Key to Nigeria’s Record Oil and Gas Tax Revenue Collection

The Federal Inland Revenue Service (FIRS) has announced a significant milestone in Nigeria’s economic drive—achieving its 2025 oil and gas sector revenue target for the first time in many years. According to the agency, this success is directly linked to the sustained peace in the Niger Delta region, thanks to the efforts of the Armed Forces and other security agencies.

In a statement issued yesterday by FIRS spokesperson Dare Adekanmbi, Executive Chairman Dr. Zacch Adedeji credited improved security in oil-producing areas for the record achievement. The announcement came during a courtesy visit by the Chief of Defence Staff (CDS), General Christopher Musa, and other senior military officers to the FIRS headquarters.

Dr. Adedeji revealed that during the agency’s latest management meeting, the Coordinating Director of the Large Tax Group presented figures confirming that the oil and gas revenue target for 2025 had been met. He stressed that this was a rare feat, made possible by the peaceful environment in regions hosting vital oil and gas infrastructure.

“Production is happening, companies are making more profit, and this translates to more tax revenue,” Adedeji said. “This success aligns with President Bola Tinubu’s policy of taxing prosperity, not poverty. Prosperity thrives in an atmosphere of peace, and the Armed Forces are central to maintaining that peace.”

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Armed Forces as Central Stakeholders in Economic Growth

Adedeji emphasized that the role of the military in protecting oil installations and ensuring security in the Niger Delta has been crucial to sustaining national revenue growth. He noted that without stability in these areas, oil production — and by extension, government earnings — would suffer severe setbacks.

Highlighting the government’s appreciation of military efforts, the FIRS chairman pointed to President Tinubu’s recent approval for the construction of 1,550 housing units for Armed Forces personnel. He described the gesture as a sign of the administration’s commitment to improving the welfare of those who safeguard the nation’s peace and economic assets.

In addition, Dr. Adedeji pledged FIRS’s support for the upcoming African Chiefs of Defence Staff Conference, scheduled to be hosted in Abuja from August 25 to 27. He underscored the importance of collaboration between government agencies and the military in sustaining peace, boosting prosperity, and driving national development.

“We will always be open to partnerships that promote peace and progress. On behalf of the President and everyone at FIRS, I thank the Armed Forces for their dedication to securing our country,” he stated.

Military Commends FIRS’s Revenue Drive

In his remarks, General Musa praised the FIRS for its remarkable improvement in revenue generation, which he said directly impacts the Armed Forces’ operational capacity. According to him, military operations — including procurement of advanced equipment — rely heavily on adequate funding.

“Without funds, even acquiring the weapons we need would be difficult. Since Dr. Adedeji took over, revenue has increased significantly, and we’ve seen fresh initiatives that are making a positive impact. Your courage in revenue reforms inspires us,” the CDS noted.

General Musa also spoke passionately about the forthcoming African Chiefs of Defence Staff Conference, describing it as a platform for African nations to come together, share experiences, and develop homegrown solutions to the continent’s security challenges.

“Often, those who claim to help us are part of the problems we face. This conference will be an opportunity for Africa to unite, identify our challenges, and solve them without external interference,” he said.

The CDS assured that the event would not only strengthen military cooperation across Africa but also showcase Nigeria’s leadership role in promoting regional peace and security.

A Milestone with Broader Implications

The FIRS’s achievement marks a turning point in Nigeria’s fiscal performance, particularly in the oil and gas sector, which remains the backbone of the nation’s revenue base. Industry analysts have long emphasized that peace and stability in the Niger Delta are critical to unlocking the sector’s full potential.

With improved security enabling increased production, oil companies have reported higher profitability, which in turn boosts corporate tax payments to the government. The sustained revenue growth also provides the federal government with more resources to invest in infrastructure, defense, and social welfare programs.

The collaboration between FIRS and the Armed Forces highlights a broader truth — economic prosperity and national security are deeply interconnected. As Dr. Adedeji noted, a thriving economy cannot exist in an environment plagued by insecurity, and the military’s role in safeguarding vital economic assets remains indispensable.

With the oil and gas revenue target met ahead of schedule, expectations are high that similar security-led economic strategies can be applied to other sectors of the economy. For now, the partnership between the FIRS and the Armed Forces stands as a testament to what can be achieved when peace and policy work hand in hand.