The notable rise in tax revenue from oil production activities has been closely linked to the enduring peace in the Niger Delta region.
Officials have noted that the key oil-producing areas’ stable and peaceful environment has allowed companies to maximise their operations and profits. Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji has noted this.
Adedeji, who spoke on Wednesday when the Chief of Defence Staff, General Christopher Muss and his team paid him a visit at the Revenue House in Abuja, said President Bola Tinubu’s security agenda has yielded tangible results, even as he commended the Armed Forces and other security personnel for their dedication in securing the country.
Adedeji disclosed that FIRS had met its 2025 tax revenue target for the oil and gas sector for the first time in a long while.
He said the increase in tax revenue from oil production activities was largely due to the maintenance of peace in the Niger Delta area, which led to greater profits for the oil companies and higher tax revenue for the Federation.
Dr. Adedeji reportedly said that the development aligns with President Tinubu’s commitment to taxing prosperity and not poverty.
He said prosperity could only be achieved in an atmosphere of peace, just as he stressed the critical importance of stakeholders in the security sector to sustain peace in the country.
“The Armed Forces are critical stakeholders, and you are central to the sustenance of peace in the country. The coordinating director, Large Tax Group, presented at the management meeting today on tax collection to date.
“And I am glad to say that, for the first time in a long while, we met our oil and gas target, which is a result of the peace maintained where oil and gas facilities are located. This is because production is happening, and companies profit more from it.
“To strengthen the morale of our security operatives, President Bola Tinubu is committed to your welfare and giving them state-of-the-art equipment and machinery to work with.
“Just a month ago, the President approved the disbursement of a huge amount of money for 1,550 units of housing estate for security personnel. This underscores that the President appreciates what you are doing for the country. And as you can see now, you are also critical to our success,” Adedeji said.
He pledged to support Nigeria’s successful hosting of the forthcoming African summit for Chiefs of Defence Staff in Abuja.
“We will always be open to collaborating to sustain peace, increase prosperity and develop our dear nation. On behalf of the President and us at FIRS, we thank you for the good job you are maintaining peace and safety for all of us,” Adedeji added.
Earlier, General Musa had commended the tax agency’s management team for rallying resources to meet the country’s needs and fund the Armed Forces’ operations.
Since Adedeji assumed office as the head of FIRS, he said, “We have seen remarkable changes.
“For us in the Armed Forces, we are nothing without funds. Even buying the good big guns we are carrying will be difficult without the funding. So, I want to say thank you. Over the years, you have made our job much easier, although we keep asking for more.
“I think that is the goal in support of Mr President in Nigeria. This is because without the funds made available, nothing can work. We have seen that revenue has increased by almost tenfold.
“And we can see new initiatives also making a very positive impact. And it is the boldness that has encouraged us in what we are doing. And that is why we are putting everything we have to support and ensure peace and security in the country,” he said.
