National News – Nigeria recorded a sharp rise in foreign currency-linked tax revenues in 2025, with collections hitting N6.33tn, according to new data released by the National Bureau of Statistics.

The increase—up 27.3 per cent from N4.97tn in 2024—reflects stronger inflows from multinational companies, exporters, and sectors earning in dollars.

It also underscores how exchange rate volatility has reshaped government earnings.

The surge cuts across major tax streams, including Value Added Tax and Company Income Tax.

Total VAT rose to N8.61tn, while CIT climbed to N9.22tn, bringing combined receipts to about N17.83tn.

Notably, over one-third of this total came from foreign-currency-linked transactions, highlighting a growing dependence on dollar-based economic activity.

Analysts say the shift is tied to Nigeria’s move toward a more market-driven exchange rate system.

As the naira weakened, the local value of dollar-denominated transactions rose, boosting tax receipts in naira terms.

Sectors like oil and gas, telecommunications, and digital services—many of which operate across borders—played a key role in driving this growth.

However, the data also reveals volatility. Foreign-currency CIT collections fluctuated sharply across quarters, reflecting swings in global markets and domestic currency pressures.

This instability raises concerns about predictability in government revenue planning.

Local economic activity also expanded, with domestic VAT and company taxes posting steady gains.

Yet the faster growth of FX-linked taxes suggests a structural tilt toward externally driven revenue streams.

In Lagos and other commercial hubs, some business owners say the trend is a double-edged sword.

While exporters benefit from higher naira conversions, import-dependent firms face rising costs and tighter margins.

Economists warn that over-reliance on foreign-currency income could expose public finances to global shocks.

The development raises broader questions about sustainability.

While higher FX-linked taxes offer short-term fiscal relief, long-term stability may depend on strengthening domestic production and reducing exposure to currency swings.