The Federal Inland Revenue Service (FIRS) has announced the collection of N12.37 trillion in tax revenue for the year 2023. This information was shared during the 2024 strategic management retreat organized by the service in Abuja. Zacch Adedeji, the FIRS executive chairman, highlighted that the revenue collection surpassed the target of N10.17 trillion set for 2022, with the non-oil sector contributing significantly to the increase.
Breaking down the N12.37 trillion tax revenue, Adedeji stated that the oil sector generated N3.17 trillion (25.6 percent), while the non-oil sector contributed N9.2 trillion (74.4 percent). Looking ahead, the FIRS aims for a tax revenue target of N19.4 trillion in 2024. Adedeji outlined the strategy to achieve this goal, emphasizing proactive engagement, improved service delivery, expanded tax net, and enhanced compliance measures.
Addressing concerns about taxing the informal sector, Adedeji clarified that the focus is on moving the informal sector to the formal sector by registering and improving their skills. He also discussed the recently approved organizational structure, highlighting its goal to enhance the efficiency and effectiveness of FIRS operations through technology-driven innovations.
Adedeji assured that the FIRS restructuring would follow due process and involve extensive re-orientation and change initiatives to ensure a more responsive, efficient, and user-friendly tax administration system.
