FG Says No Nation Can Develop External Dependence Alone

The Federal Government of Nigeria declared on Wednesday that no nation in the world could successfully finance its development agenda on the basis of external dependence alone, reaffirming its commitment to domestic revenue mobilisation as the bedrock of Nigeria’s long-term growth and fiscal sustainability.

The declaration was made by a senior government official at an event focused on Nigeria’s economic transformation agenda, and was framed as a direct response to criticism that the administration had become too reliant on foreign borrowing, including the controversial $5 billion financing arrangement with First Abu Dhabi Bank that the IMF warned against citing collateral risks and transparency concerns.

Revenue Strategy Under the Microscope

The government said its six tax reform laws signed in June 2025, along with the transition guidelines issued for their implementation in 2026, represented a structural shift in how Nigeria raised and allocated domestic revenue. Finance Minister Taiwo Oyedele, whose appointment as full minister was widely interpreted as a signal of deeper fiscal reform, had previously said Nigeria’s revenue challenge was primarily one of compliance and base expansion rather than rate increases.

However, independent economists noted that Nigeria’s revenue-to-GDP ratio, while improving, remains among the lowest in Africa at approximately nine per cent, and said the administration’s rhetoric on domestic resource mobilisation must be matched by stronger enforcement of existing tax obligations and a reduction in the large informal sector that sits outside the formal revenue net.

FAAC Data Shows Improving Collections

Meanwhile, the May 2026 FAAC distribution of N2.3 trillion, up from N2.257 trillion in April, offered evidence of incremental improvement in revenue collection. Petroleum Profit Tax, Hydrocarbon Tax, and oil and gas royalties all showed positive trends. Furthermore, foreign VAT collections rose 83 per cent year on year in Q1 2026 to N830 billion, showing that digital economy taxation was beginning to yield results. Still, civil society groups said the gap between improving government revenue and worsening poverty for ordinary Nigerians remained the central unresolved tension in Nigeria’s fiscal story. Consequently, the government’s revenue self-reliance declaration arrives at a moment when both the statistics and the lived experience of citizens are pulling the national narrative in different directions.