Home Economy FG got N12.3trn tax in 2023 as FIRS gets N19.4trn revenue target for 2024

FG got N12.3trn tax in 2023 as FIRS gets N19.4trn revenue target for 2024

by Business News Report

Federal Inland service has said it generated a total of N12.3 trillion in 2023 just as the Federal Government said it has set a tax revenue target of N19.4 trillion for the agency in the 2024 fiscal year. The new revenue target represents an increase of over N9 trillion when compared to the N10 trillion target in the 2023. It is also N7 trillion higher than the N12.3 trillion which the Service generated in 2023. The 2024 target was disclosed  on Wednesday in Abuja at the 2024 strategic management retreat of the FIRS. 

According to the FIRS, oil revenue target was N9.960 trillion, which is higher by 214 per cent  than the N3.172 trillion actual revenue  in 2023. On the other hand, non-oil revenue target was N9.453 trillion in 2024 as against the N9.202 trillion in 2023. Oil revenue contributed only 25.6 per cent of 2023 revenue while 2024 Medium Term Expenditure Framework target anticipates 51 per cent contribution by OIl. The event with the theme, “Re-imagining tax administration for equity and economic growth,” was declared open by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. According to Edun, tax plays an integral role in government’s quest to boost revenue that will help bridge infrastructure deficit, and build social safety nets that will cater to ordinary Nigerians. He commended the management of the FIRS for its commitment towards meeting its set revenue target. “It is commendable that the FIRS is holding this retreat at the beginning of the year to rub minds on how to increase government revenue.

“We are projecting a 77 per cent increase in IGR. Our revenue as a percentage of Gross Domestic Product (GDP) is low at below 10 per cent. It should be much higher. Government needs so much to spend on infrastructure and social services. The idea is to shift from expensive debts to domestic revenue mobilisation,” he said. The Executive Chairman, FIRS, Dr Zacch Adedeji, said that the retreat was a historic moment to unveil the new FIRS organisational structure, with the commitment to revolutionise tax administration in Nigeria. According to Adedeji, the cornerstone of this paradigm shift is the establishment of a customer-centric organisational structure designed to streamline processes and enhance efficiency in tax operations. “We are not merely adapting to change; we are leading it. The forthcoming structure set to kick off from February, embodies our dedication to modernise and digitise the tax administration landscape in Nigeria. In our pursuit for a more efficient and contemporary tax administration methodology, we are embracing an integrated tax approach, leveraging technology at every step. This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world,” he said.

He said that the structure advocated for a comprehensive approach to taxpayer services, consolidating core functions and support under one umbrella. “By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience. No more complexities, no more overlapping, just a seamless and user-friendly interaction for every taxpayer. In a groundbreaking move, we are shifting away from traditional tax categorisation. Instead of maintaining different departments for distinct tax categories, the new structure formulates taxpayer segments based on thresholds. This tailored approach ensures that taxpayers are guided and serviced according to their specific needs, eliminating confusion and redundancy in tax administration. Behind this transformative initiative are carefully considered considerations detailed in our operations plan. We highlight the rationale behind our integrated approach, the benefits of comprehensive taxpayer services, and the logic behind tailored taxpayer categories, which will be presented to management in the subsequent sessions of this workshop. These considerations set the stage for a more responsive, efficient and user-friendly tax administration system,” he said.  According to Amina Ado, Coordinating Director, Special Tax Operations Group, the FIRS has a revenue target of N19.4 trillion.

Ado said that the service surpassed its 2023 target ofN10.7 trillion and generated N12.37 trillion. She said that the 2024 target of N19.4 trillion can be achieved partly through improved management large taxpayers and sector contributors.

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