Crude Awakening: Oil Taxes Tumble 53%
The Big Picture: Nigeria just took a hefty hit to its oil-driven purse. Fresh figures from the Federation Account Allocation Committee (FAAC) show September’s oil tax take collapsed by more than half, a blow that ups the pressure on already-stretched public finances.
The Details: Oil tax collections, Petroleum Profit Tax, Hydrocarbon Tax and Company Income Tax (Oil & Gas) shrank to ₦302.51 billion, down 53.06 % from August, according to The PUNCH. That haul also missed FAAC’s monthly target by nearly ₦298 billion. FAAC pinned the shortfall on thinner receipts from Production Sharing Contracts after crude output slipped to 1.58 million barrels a day.
Why It Matters / What They’re Saying: The reaction was swift. Analysts warn the slump widens the hole oil has punched in federal coffers just as the government leans on tax reforms to boost revenue. FAAC’s report bluntly notes the dip stems from “a decrease in receipts from PSC.” Translation: less crude, less cash.
Around the Tax World
• Lagos’ phantom properties? A university don told attendees at the Nordic Nigeria Connect 2025 that 70 % of Lagos buildings are unregistered, hobbling property-tax collections (Premium Times).
• ChatGPT gets taxed: Starting 1 November, OpenAI will tack 7.5 % VAT onto Nigerian subscriptions to comply with the amended VAT Act (Business Post).
• FIRS flexes muscles: Non-oil tax receipts are doing the heavy lifting; the service remitted ₦31.38 trillion in nine months, beating its own target by 21 % (The Guardian).
• Revenue recovery squad: The RMAFC and FIRS have hired consultants to chase every “recoverable naira” for the Federation Account, a move officials call “result-oriented innovation” (NAN).
By the Numbers
Prime Number: ₦302.51 billion , the total oil-tax take in September, a 49.6 % miss on FAAC’s target.
Looking Ahead
All eyes are now on October’s FAAC meeting to see whether upbeat non-oil taxes can keep offsetting crude’s slide , or if deeper fiscal belt-tightening is in the cards.
Prepared by MyTax - mytax.com.ng