- Surpasses 2023 Projections By N816b
The Federal Inland Revenue Service (FIRS) has set a revenue target of N19.41 trillion for itself in 2024. This target represents a significant increase of 56.91% from the previous year’s actual of N12.37 trillion and 67.91% from the previous year’s target of N11.56tr.
The data showed that the Federal Government expects more taxes from the oil sector, about N9.96 trillion this year. This is about 214.2% higher than the N3.17 trillion that was generated from this form of tax last year.
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Speaking on Wednesday in Abuja at the 2024 strategic management retreat of FIRS, its Executive Chairman, Zacch Adedeji, said the target is achievable with the series of reforms being implemented by the Service.
He said “Our focus is to drive for long-term compliance. And in a few minutes now, by those rules, we have the new structure that we have. And what we’ve done in general is to move from functional or type of taxi units to customer-centred.
“And we want to use that to drive compliance because the focus cannot be on investigation. The real strategy is to drive compliance and the way to do it is that there will always be consequences for no compliance.
“So, our focus is not to go and tax the informal sector. Our focus is actually to bring the informal sector to the sector. The focus should not be let’s go and tax informal. The focus should be to move the informal sector to the formal sector, improve their skill and then we can then tax them.”
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He added that the new operational structure that is being established at the agency will eliminate confusion and redundancy in tax administration in Nigeria.
Meanwhile, the agency disclosed that it generated the sum of N12.37 trillion in 2023 exceeding its 2023 revenue target by an N816 billion representing a 107% performance over the set target of N11.56 trillion.
These figures were revealed by Amina Ado, Coordinating Director of Special Tax Operations Group at the FIRS at the 2024 strategic management retreat of FIRS held in Abuja.
Giving a breakdown of the revenue generated, FIRS disclosed that Company Income Tax (CIT) makes up 36.14% of the total taxes collected in 2023, making it the most collected tax for the year. It is followed by Value Added Tax (VAT) of N3.64 trillion and Petroleum Profit Tax (PPT) of N3.17 trillion.
Despite these achievements, FIRS acknowledges the challenges ahead, particularly in the face of global economic uncertainties, fluctuating oil prices, and internal resistance to change. However, the agency remains resolute in its commitment to national duty, aiming to silence doubts and confidently declare its capability to meet and exceed its targets.
