Tinubu: Tax-to-GDP ratio rises to 13.5%, debt service-to-revenue down to 50%

President Bola Tinubu has revealed that the Nigeria’s tax-to-GDP ratio has risen to 13.5 percent, up from less than 10 percent.

The president made the announcement in his Independence Day speech on Wednesday, noting that the increase signals progress in government revenue reforms.

“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.

“The tax law is not about increasing the burden on existing taxpayers but about expanding the base to build the Nigeria we deserve and providing tax relief to low-income earner,” Tinubu said.

He also revealed that the federal government has cut the debt service-to-revenue ratio from 97 percent to below 50 percent.

According to him, the government has already paid down the “infamous Ways and Means” advances that had destabilised the economy and fuelled inflation.

“Following the removal of the corrupt petroleum subsidy, we have freed up trillions of naira for investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government,” he said.

Tinubu further disclosed that Nigeria’s external reserves climbed to $42.03 billion in September, the highest level since 2019.

On trade performance, he said the country recorded a surplus for five consecutive quarters, with exports consistently outpacing imports.

“Nigeria’s trade surplus increased by 44.3 percent in Q2 2025 to ₦7.46 trillion ($4.74 billion), the largest in about three years.

“Goods manufactured in Nigeria and exported jumped by 173 percent. Non-oil exports now represent 48 percent of total exports, compared to oil at 52 percent,” the president noted.

Tinubu said the development shows that Nigeria is steadily diversifying its economy and expanding foreign exchange earnings beyond oil and gas.