FIRS Exceeds 2023 Target, Generates N12.374trn

The Federal Inland Revenue Service (FIRS) has announced the collection of N12.374 trillion as tax revenue for the federation in 2023, surpassing the year’s target of N10.7 trillion by N1.67 trillion.
FIRS has a N19.4 trillion tax revenue target for 2024, a mark the chairman, Dr Zacch Adedeji, said is achievable with an effective tax collection system in place in a viable economic environment for businesses to prosper.
This target represents a significant increase of 56.9 per cent from the previous year’s actual revenue and 67.91 per cent from the previous year’s target.

Giving a breakdown of the figures, one of the agency’s coordinating directors, Mrs Amina Ado, said oil revenue accounted for N3.17 trillion of the total takings, representing 25.6 percent, while non-oil revenue was 74.4 percent at N9.2 trillion.
The initial tax target of N10.7 trillion for 2023 was reviewed upwards to N11.5 trillion by the agency in view of the exchange rate, indicating that actual collection was surpassed by N817billion.
FIRS said the increase in non-oil tax revenue for 2023 as against previous years came as a result of improved efficiency in tax collection.

Ahead of the set goals for 2024, Mr Adedeji said “We will focus on the fruits and not the seeds. We need to ensure we have that viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection.
“We are not a revenue-generating agency, but a revenue-collection agency. With the plan of President Bola Tinubu to rejuvenate the economy, companies are going to grow and prosper.”

Speaking earlier at a retreat for the management team of the FIRS, the FIRS chairman said “In a ground-breaking move, we are shifting away from traditional tax categorization. Instead of maintaining different departments for distinct tax categories, the new structure formulates taxpayer segments based on thresholds.”
In her own goodwill message, the Accountant-General of the Federation, Dr Oluwatoyin Madein, lauded the FIRS for contributing 70 per cent of the total revenues for the federation.
She, however, charged Dr Adedeji to challenge the status quo in his bid to increase tax revenue.

“We have seen a massive improvement in tax collection with the changes at FIRS over the years.
The FIRS now contributes about 70% of the total federation revenues.
“Yet, a lot of tax revenues are left uncollected. The current tax base needs to be expanded while at the same time finding new and improved ways and means and “partnerships” that engender tax revenue growth.
“With strategic cooperation within FIRS and strategic partnerships, and by challenging the status quo, I am strongly convinced that FIRS can set a new standard for tax administration in Africa. If we continue to do business as usual, we continue to get the same level of results.
“This is my charge to the FIRS boss and all management staff – challenge the status quo!” she said.