The Federal Government has set a target of N19.4 trillion for the Federal Inland Revenue Service (FIRS) to generate in 2024, up from N12.374 trillion collected in 2023, which surpassed the year’s target of N10.7 trillion.
The Chairman of FIRS, Zacch Adedeji disclosed this at the opening of a two-day strategic management retreat of the FIRS held in Abuja, on Wednesday.
A statement by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, disclosed that the Federal Government that the N19.4 trillion target is achievable with the emplacement of an effective tax collection system and creating of a viable economic environment for businesses to prosper.
Also speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, commended Mr Adedeji for surpassing the set target for last year and tasked him on higher tax revenue in line with global trends.
Giving a breakdown of the figures, one of the FIRS’ coordinating directors, Mrs Amina Ado, said oil revenue accounted for N3.17 trillion of the total takings, representing 25.6%, while non-oil revenue was 74.4% 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 N817 billion.
The statement said increase in non-oil tax revenue for 2023 as against previous years came as a result of improved efficiency in tax collection which saw the FIRS exceeding targets in tax types such as Company Income Tax, Value-Added Tax, Education Tax, Stamp Duties, Electronic Money Transfer Levy and others.
Explaining further, Adedeji said “What determines whatever we have comes from micro-economic indices because when the economy runs well, we are going to be taxing prosperity, not poverty.
“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,” he said.
Earlier in his opening remarks, Mr Adedeji said the purpose of the retreat was to unveil to the directors in the agency the new roadmap that would drive an efficient tax administration.
“Today marks a historic moment as we unveil the new FIRS organizational structure, a critical milestone in our commitment to revolutionize tax administration in Nigeria.
“The cornerstone of this paradigm shift is the establishment of a customer-centric organizational structure designed to streamline processes and enhance efficiency in our tax operations.
“The new structure, set to kick off from February 2024, embodies our dedication to modernize and digitize the tax administration landscape in Nigeria.
