N19.4trn Tax Revenue Target for 2024 Achievable—FIRS

January 26, 2024
FIRS Rivers State Maintain Status Quo

By Adedapo Adesanya

The Federal Inland Revenue Service (FIRS) has been handed a target of N19.4 trillion for 2024 after collecting a record N12.4 trillion as tax revenue for the federation in 2023.

The Chairman of FIRS, Mr Zacch Adedeji, disclosed this at the opening of a two-day strategic management retreat of the FIRS held at the Congress Hall of Transcorp Hilton Hotel in Abuja, on Wednesday.

Mr Adedeji stressed that the target is achievable with the emplacement of an effective tax collection system and the creation of a viable economic environment for businesses to prosper.

Speaking on how realistic the 2024 target is, Mr 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 a 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.

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 per cent, while non-oil revenue was 74.4 per cent at N9.2trillion.

The initial tax target of N10.7 trillion for 2023 was reviewed upwards to N11.5 trillion by the agency given the exchange rate, indicating that actual collection was surpassed by N817 billion.

The FIRS chairman said the 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.

Mr Adedeji said the purpose of the retreat was to unveil to the directors of 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,” a statement by Mr Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman said.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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