FCT-IRS Exceeds Revenue Goals, Cautions Defaulters On Severe Penalties

The Federal Capital Territory Internal Revenue Service (FCT-IRS) said it has successfully exceeded its revenue target for 2024, amassing ₦262 billion compared to the anticipated ₦250 billion, reflecting robust financial health.

Additionally, the agency reported a revenue collection of ₦43.8 billion for January 2025, hinting at a promising fiscal outlook for the year.

The executive chairman of the FCT-IRS, Mr. Michael Ango, who made this known during a tax awareness event held in Abuja yesterday, issued a stern warning regarding the implications of failing to meet tax obligations, that non-compliance could result in heavy penalties, including fines and even criminal prosecution.

“Employers who neglect to file their annual returns by the January 31 deadline will incur a minimum fine of ₦500,000, with serious consequences for persistent offenders. Those who refuse to pay taxes are essentially depriving our roads, hospitals, and schools of essential funding, which is unfair to compliant citizens,” Ango said.

He reminded citizens that individual annual income tax returns must be submitted by March 1, 2025.

While the agency intends to enhance voluntary compliance through ongoing educational initiatives, Ango affirmed that it would enforce penalties if necessary.

Ango while highlighting the distinctive financial obligations faced by the FCT, pointed out that as a federal and subnational entity, substantial revenue is critical for addressing its expanding infrastructure demands.

He praised the minister of the FCT, Nyesom Wike, for his steadfast dedication to developing infrastructure but underscored that financing these initiatives requires more than just federal allocations.

“The minister cannot fund these projects from his personal resources or solely rely on federal support. That is where the FCT-IRS plays a vital role. It is our duty to collect revenue that benefits all residents,” he noted.

Ango further explained that the administration’s emphasis on rehabilitating roads, schools, hospitals, and other essential facilities underscores the significance of taxation.

He encouraged residents to view tax contributions as a direct investment in transforming Abuja into a competitive global city.

“We envision Abuja as a metropolis on par with any major capital in the world. The Minister has set this as his goal, and we believe in its feasibility,” he stated.

Ango indicated that enforcement efforts will be directed toward underreported tax sectors, particularly the entertainment industry, where compliance levels among hotels, restaurants, and event venues have been sporadic.

“We are actively engaging with stakeholders in the hospitality sector, and a resolution is imminent. However, those who continue to evade their tax responsibilities will face legal enforcement actions,” he warned.

Looking ahead, the FCT-IRS chairman reaffirmed the agency’s commitment to transparency, collaboration, and effective service delivery, calling on all stakeholders, including the media, to support the movement towards increased tax compliance.

“By the time Abuja celebrates its 50th anniversary in 2026, the Minister aims to reveal a city that will impress both residents and visitors. This vision is attainable, but requires everyone’s involvement—your taxes, revenues, and fees,” Ango asserted.

He also promised taxpayers accountability in the use of funds, emphasizing that every kobo collected is directed toward improving infrastructure and public services.

“As we gather these revenues, we are dedicated to ensuring that residents feel the benefits through enhanced roads, dependable water supply, quality healthcare, and improved security,” he added.

While the agency prioritizes voluntary compliance, Ango reiterated that enforcement remains a legal requirement.

“We champion voluntary compliance as the preferred method, but will invoke enforcement when necessary. Our goal is a future where we achieve 100% compliance, allowing residents to take pride in their contributions to Abuja’s development,” he said.

He said that to enhance compliance, the FCT-IRS is ramping up direct interactions with the public via roadshows, market visits, and the establishment of kiosk offices in prominent plazas and area councils.