₦airaland Forum

THE Presidency on Wednesday said the non oil sector of the economy generated ₦20.59 trillion in eight months, thereby surpassing the federal government revenue target for 2025.

The Presidency also said that the Nigeria Customs Service, NCS, generated ₦3.68 trillion in the first quarter of the year which was ₦390 billion above target, and 56 percent of the full-year goal.

In a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, titled: “Nigeria’s non-oil revenues power strongest fiscal performance in recent history,” the Presidency said the revenue generation has increased what is shared at the Federation Account Allocation Committee, FAAC for the three tiers of government.

The statement partly read: “The Presidency welcomes the latest revenue figures for January–August 2025, showing that Nigeria is achieving unprecedented growth in non-oil collections, a direct result of reforms to improve the government’s fiscal position, strengthen compliance, and digitise tax administration.

“President Bola Tinubu made a pointed reference to this positive growth trajectory in non-oil revenue mobilisation yesterday while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura, which a section of the media has reported out of context.

“The President highlighted the significant growth in non-oil revenues accruing to the Federation, federal, state, and local governments. From January to August 2025, total collections reached N20.59 trillion, a 40.5% increase from N14.6 trillion recorded in 2024. This strong performance aligns with projections, placing the government firmly on course to achieve its annual non-oil revenue target.

“The President also said that the Federal Government is no longer borrowing from local banks to buttress the strong fiscal performance since the start of the year.

“The President commented on tax revenues, which do not include dollar oil receipts, where targets are not being met because of the slump in the crude oil market.”

It further stated that as part of this administration’s inclusive growth policy, resources are being directed closer to the people.

“Therefore, increased revenues have translated into record FAAC disbursements. For the first time in history, monthly allocations to states and local governments crossed ₦2 trillion in July 2025, providing subnational governments with greater fiscal space to fund food security, infrastructure, and social services,” it said.

According to the statement, notwithstanding, the increases in revenues do not yet match the President’s ambitions for expenditures on education, health, and infrastructure, adding that all efforts are being made to address these gaps.

Commenting on the figures, the presidential spokesman, Onanuga, stated, “Nigeria’s fiscal foundations are being reshaped. For the first time in decades, oil is no longer the dominant driver of government revenue.

“The combination of reforms, compliance, and digitisation powers a more resilient economy. The task ahead is to ensure that these gains are felt in the lives of our citizens and in better schools, hospitals, roads, and jobs.”

The statement said the ₦20.59 trillion the country mobilised in eight months was “the most substantial collection in recent history.”

It said non-oil is has become the engine: with ₦15.69 trillion collected, noting, “non-oil revenues account for three out of every four naira, showing a fundamental shift away from oil dependence.”

Beyond inflation, it said: “While inflation and FX revaluation contributed, the uplift is primarily reform-driven — digitised filings, Customs automation, tighter enforcement, and broadened compliance.

“Customs Overperformance: ₦3.68 trillion was collected in H1, ₦390 billion above target, and already 56% of the full-year goal. This reflects systemic changes, not one-off windfalls.

“States’ Fiscal Space Expanded: FAAC allocations reached ₦2 trillion in July for the first time, giving states resources to strengthen local development.

“On track, not overclaiming: The government affirms collections are ahead of pro-rata expectations, with final validation to be published by the Budget Office at the end of the year.

“Revenues are rising, the base is broadening, and reforms are working. The priority is translating these numbers into real relief for citizens by putting food on the table, creating jobs for young people, and investing in roads, schools, and hospitals.”

Contractors under the Indigenous Contractors Association of Nigeria blocked the entrance of the Ministry of Finance in Abuja, protesting the non-payment of contracts executed since 2024.

The protesters prevented staff and even the minister’s convoy from entering through the main gate, demanding that the minister address them directly.

Zionmdde:
I am loving the multiple taxation. I was just laughing when i got the info, didn't know it will online this soon. You buy 1 litre of fuel, you pay tinubu #42.

We are yet to see anything. When January comes and people come to really realize there are several interpretations of the tax bill not on the internet, fresh wailing will commence

Tinubu
Keep taxing us joor
Finish us with taxes
We pay with joy, on your mandate we shall stand

President Bola Tinubu has reaffirmed that the establishment of state police is unavoidable as part of efforts to strengthen security across the country.

Speaking on Tuesday at the Presidential Villa in Abuja during a courtesy visit by a delegation of prominent Katsina indigenes led by Governor Dikko Radda, Tinubu said the federal government is committed to confronting insecurity head-on.

The president directed security agencies to reassess their operations in Katsina State, which has witnessed a spike in banditry, and disclosed that advanced military equipment and surveillance technology would be deployed. He also revealed plans to enhance the capacity of newly recruited forest guards in the state.

Tinubu stressed that while the country faces serious security challenges, they can be resolved with determination and strategy.

“The security challenges that we are facing are surmountable. Yes, we have porous borders. We inherited weaknesses that could have been addressed earlier. It is a challenge that we must fix, and we are facing it,” he said.

“I have today directed all the security agencies to energise further and look at the strategies. We have approved the additional acquisition of drones.”

The president further instructed that he be given daily updates on security operations in Katsina.

“I am reviewing all the aspects of security; I have to create state police. We are looking at that holistically,” he added.

“We will defeat insecurity. We must protect our children, our people, our livelihood, our places of worship, and our recreational spaces. They can’t intimidate us.”

Tinubu reminded the delegation that in February 2024, the federal government formed a committee to study the framework for state policing. The initiative has since gained wide support, although as of March, 20 states had yet to submit their reports, according to Vice-President Kashim Shettima.

The president also paid tribute to former President Muhammadu Buhari, assuring that his legacy would be preserved.


“The time we lost our brother, President Buhari, is a loss for all of us. It is the will of God Almighty, but he has left in a good way,” he said.

“He didn’t hand over a defeated country, a battered political structure, but a legacy of success, and that is the most important thing.”

Governor Radda expressed gratitude to Tinubu for his consistent support.

“Mr President, I would like to thank you very much, and I want to say before our elders that there was never a time I came to the President with a request that he rejected,” Radda said.

Other speakers, including former Governor Aminu Masari and Ibrahim Ida, the Wazirin of Katsina, commended Tinubu for honouring Buhari and investing in infrastructure projects in the state.

Ida, however, urged the federal government to prioritise the upgrade of the Umaru Musa Yar’Adua International Airport and intensify security in southern Katsina.

Motorists across Nigeria have expressed mixed feelings following Monday’s increase in the price of Compressed Natural Gas (CNG), which rose from N230 to N380 per Standard Cubic Metre (SCM) at several independent filling stations.

Daily Trust reports that major filling stations, including NIPCO CNG and Mobil, raised their pump prices from N230 to N380 on Monday.

However, during a visit to the NNPCL station in the Central Business District of Abuja, our reporter observed that prices remained unchanged.

While the reason for the sudden hike is unclear, Daily Trust gathered that NIPCO Plc’s supply contract has allegedly expired, with NNPC now taking over.



Motorists lament

For many drivers, the price surge has triggered frustration over what they fear could erode the cost advantage of CNG over petrol.

Hakeem Idris, a ride-hailing driver, described the development as discouraging. “Many Bolt drivers spend up to 10 hours in queues or drive long distances just to refill. Now with this sudden increase, the whole idea of CNG being cheaper is at risk.”

Another motorist, Basil Duniya, said CNG had helped him save as much as N43,000 weekly. “I invested in conversion because it was affordable. But if prices keep going up, the difference with petrol will disappear,” he said.

Private car owner Mustapha Ahmed urged government support instead of price hikes. “CNG was the last hope for ordinary Nigerians. At N230, it made sense. Increasing it now, while we are still asking for more filling stations and incentives, is unfortunate,” he said.

Commercial driver Uche Ogbu admitted he expected an increase, but not so soon. “We just started enjoying the benefits. If it rises again beyond N380, many of us taxi drivers may abandon it,” he warned.

Another driver, Bassey Effiong, said he recently installed an extra CNG cylinder to reduce refilling stress, only to be hit by the price hike. “It feels like wasted money. My appeal is that the government should ensure stability at least.”

Edo

In Edo State, motorists confirmed the price had jumped from N200 to N380.

One of the drivers, Monday Okosu, told Daily Trust that he now spends N6,000 to fill his cylinder, up from N4,000 before the hike. Despite the increase, he said CNG is still cheaper than Premium Motor Spirit (PMS).

“I converted my vehicle to CNG because it was cheaper than fuel. I hope it doesn’t end up like petrol that skyrocketed. When I was using PMS, I spent between N20,000 and N22,000 to fill my tank,” he said.

Another driver, Sunday James, who operates along Airport Road, said he paid N380 per kg after the increase.

For James Odion, who plies Agbor Road, CNG is still the best option for commercial vehicles. He said it costs about N5,800 to fill his tank but lamented the scarcity of stations in Benin City.

“We have only about three or four CNG stations in the city. Drivers spend several hours queuing before getting the product. Despite that, it’s still better than fuel because I make more money now,” he said.

Other drivers appealed to the government to expand CNG infrastructure, especially in Benin, to reduce the long waiting time at the few available stations.

Kano drivers say CNG feels like fairy tale

In Kano, where the federal government launched a CNG conversion centre in October 2024, motorists claim adoption remains minimal.

“I have listened to several stories on the radio, but as a driver, I have never seen any CNG-powered vehicle. Many people are in the same situation, which is why the discussion around CNG is mostly based on hearsay, leaving many doubtful about its practicality,” a driver in the state said.

In Kaduna State, the CNG conversion centre at the Nigerian Institute of Transport Technology (NITT) is operational, with both commercial and private vehicles occasionally seen being converted. However, most vehicle owners who have adopted CNG said the challenge is not the cost but the availability of the fuel.

One of them, Malam Aminu Yaya, said: “I converted my car, but the main issue is accessing CNG when needed. That is why many people have abandoned the option and gone back to using petrol.”

In Jigawa State, there is currently no functional federal government-owned CNG conversion centre. However, in December 2024, the state governor approved N117 million for the establishment of a pilot CNG conversion and training facility in Dutse, the state capital.

Across the Northwest, only Kano and Jigawa have CNG conversion centres, while Sokoto, Katsina, Zamfara, and Kebbi States still lack any federal government-established centres.

Lagos drivers downplay impact

In Lagos, many drivers said CNG remains the cheaper option despite the hike.

Joshua John, a commercial driver using a 65kg CNG cylinder, described the recent price adjustment as minimal.

He said his daily refill cost rose from N3,600 to N5,700, but insisted CNG remains cheaper than fuel. He urged the federal government to expand filling stations to reduce long queues.

“It’s better than fuel. If CNG were as widely available as fuel, it would have been perfect. Right now, we queue before buying. If it were as easy as refueling with petrol, it would be better,” he said.

John added that the increase would not affect transport fares, noting that CNG drivers charge the same rates as fuel users.

Olakitan Olumide, who runs his vehicle on both petrol and a 45kg CNG cylinder, said CNG remains more economical. “I used to spend N3,500 on CNG and N5,000 on fuel daily. CNG is a hundred percent better,” he said, also calling for more filling stations.

For Julius Ogwu, who converted his vehicle in February, the benefits remain clear. He explained that 26 SCM of CNG covers about 100 kilometres, which he described as profitable despite the price rise.

“I have been benefiting since it was N230. The increase is negligible. With my V8 engine, fuel costs far more. CNG is very efficient,” he said.

Price disparity

Daily Trust reports that price disparities have persisted since the introduction of CNG in Nigeria.

On October 24, 2023, Greenville LNG launched the country’s first Liquefied Compressed Natural Gas (L-CNG) station in Kaduna, where liquefied natural gas is converted into CNG for vehicles.

Since its launch, Greenville has consistently sold CNG above the regulatory price of N230 per standard cubic meter (SCM), charging over N400.

Similarly, Shafa Energy, after inaugurating its station in Abuja, sold at N350 per SCM before being shut down over its refusal to comply with the regulated price. The recent hike to N380 per SCM now raises speculation that Shafa may resume operations.

In the same vein, Bovas CNG had completed installation and was ready to begin sales but held back after seeking to sell above the official rate.


Price may hit N520 per SCM to attract investments – Stakeholders

Stakeholders in Nigeria’s compressed natural gas (CNG) sector have warned that retail prices may need to rise to about N520 per standard cubic metre (SCM) to attract substantial private investment.

They said although CNG remains cheaper than petrol and diesel, current regulated rates are not commercially viable enough to expand infrastructure nationwide.

At present, some CNG stations sell between N230 and over N500 per SCM.

Daily Trust understands that filling a 65kg CNG cylinder requires about 13 to 15 SCM, enough to power a vehicle for roughly 100 kilometres.

By comparison, petrol or diesel vehicles need about 15 to 18 litres for the same distance.

Industry experts said this cost advantage for drivers is clear, but investment incentives remain weak.

“The current CNG price of N230 is not sustainable. If the price rises above N520 per SCM, it would create commercial viability and attract more foreign and local investments,” said energy consultant Chinedu Basil.

Similarly, Abdullahi Kabiru, a gas development specialist, noted that CNG adoption depends heavily on pricing.

He explained that at the lowest rate of N230 per SCM, drivers enjoy huge savings compared to petrol and diesel.

“Even if the price rises to around N407 per SCM, CNG still delivers about 104% savings compared to petrol,” he said.

According to stakeholders, the path to scaling up CNG lies in balancing affordability for consumers with attractive returns for investors.

They maintained that without a viable pricing framework, the government’s goal of making CNG as accessible as petrol and diesel will face major setbacks.



CNG push after subsidy removal

In August 2023, the Bola Tinubu administration shifted focus to Compressed Natural Gas (CNG) as an alternative to petrol following the removal of fuel subsidies, which pushed pump prices above N650 per litre in some areas.

To cushion the impact, the Nigerian National Petroleum Company Limited (NNPCL) partnered with NIPCO Gas Limited to roll out CNG stations nationwide, providing a cheaper and cleaner fuel option.

The project is structured in two phases: intra-city phase (Q1 2024): 21 CNG stations to support urban transportation, expected to be operational in the first quarter of 2024 and intercity phase: 35 stations to serve long-distance travel, promoting CNG use beyond cities.

Additionally, NNPC Retail plans 56 more stations, while NIPCO Gas already runs 14 CNG stations nationwide.