2023:FG accrues N12.37 trillion in taxes, as FIRS surpasses revenue target by N816 billion in 2024
The Federal Inland Revenue Service (FIRS) has exceeded its 2023 revenue target by an N816 billion, reflecting a 107% performance over the set goal.
Data obtained from the agency on Wednesday, showed that total actual revenue collection for the year 2023 stood at N12.37 trillion, outperforming the N11.56 trillion target, according to a presentation document by Amina Ado, Coordinating Director of Special Tax Operations Group at the FIRS.
The document which was presented by Amina Ado, Coordinating Director of Special Tax Operations Group of the FIRS, at its management retreat in Abuja, indicated that overall actual revenue collection for the year 2023 was N12.37 trillion, surpassing its N11.56 trillion target
Additionally, company income tax (CIT) was the largest tax collected in 2023, accounting for 36.14% of all taxes collected. Next in line are the N3.64 trillion Value Added Tax (VAT) and the N3.17 trillion Petroleum Profit Tax (PPT).
Meanwhile, N19.41 trillion in revenue is anticipated by the Federal Government from the FIRS in 2024.This target represents a significant increase of 56.91% from the previous year’s actual and 67.91% from the previous year’s target.
According to the figures, the Federal Government anticipates receiving over N9.96 trillion in taxes from the oil industry this year. This compares to the revenue this type of tax brought in last year by around 214.2%.
In his remarks, the Executive Chairman, Zacch Adedeji, said the target is achievable with the series of reforms being implemented by the Service.
According to Adedeji, “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.”
He added that the new operational structure that is being established at the agency will eliminate confusion and redundancy in tax administration in Nigeria.
The sustained increase in revenue collection can be largely attributed to FIRS’s administrative reforms, such as the automation of tax collection processes, introduction of TaxPro-Max, and utilization of third-party data for improved tax intelligence. Policy reforms have also played a significant role, including the rise in VAT and Education Tax rates and enhancements in tax laws through Finance Acts.
Despite these accomplishments, FIRS acknowledges the challenges ahead, particularly in the midst of global economic uncertainties, fluctuating oil prices, and internal resistance to change. Nevertheless, the agency remains steadfast in its commitment to national duty, aiming to dispel uncertainties and confidently assert its ability to meet and surpass its targets.
