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. Mrs. Amina Ado, one of the agency’s coordinating directors, provided a breakdown of the figures, revealing that oil revenue accounted for N3.17 trillion, representing 25.6 percent of the total, while non-oil revenue was 74.4 percent at N9.2 trillion.
The initial tax target of N10.7 trillion for 2023 was revised upwards to N11.5 trillion by the agency, reflecting an actual collection that surpassed the target by N817 billion. FIRS has set a N19.4 trillion tax revenue target for 2024, and Chairman Dr. Zacch Adedeji expressed confidence that this goal is achievable with an effective tax collection system in place, fostering a viable economic environment for business prosperity.
Adedeji emphasized a shift in tax categorization, moving away from maintaining different departments for distinct tax categories. The new structure segments taxpayers based on thresholds, aiming to improve efficiency in tax collection. The FIRS chairman highlighted the agency’s role as a revenue-collection agency, not a revenue-generating one, and stressed the importance of creating a conducive economic environment for companies to grow and prosper.
During a retreat for the FIRS management team, the Accountant-General of the Federation, Dr. Oluwatoyin Madein, commended FIRS for contributing 70 percent of the total revenues for the federation. She encouraged Dr. Adedeji to challenge the status quo, expand the tax base, and explore new ways to foster tax revenue growth through strategic cooperation and partnerships within the FIRS.
