By: Temitayo Jaiyeola
The federal government has set a tax collection target of N19.4 trillion for 2024.This comes as the Federal Inland Revenue Service reported a record N12.37 trillion in tax revenue for the federation in 2023, exceeding the year’s target of N10.7 trillion.
Dr. Zacch Adedeji, head of the FIRS, believes that the increased aim is possible due to a competent tax collecting system and a viable economic environment for enterprises to thrive.
Mrs Amina Ado, one of the agency’s coordinating directors, provided a breakdown of the numbers, revealing that oil revenue accounted for N3.17 trillion, or 25.6% of the total, while non-oil revenue was 74.4 percent, or N9.2 trillion.
According to a statement signed by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, the announcement was made on Wednesday at the start of the agency’s two-day strategic management retreat at the Transcorp Hilton Hotel in Abuja’s Congress Hall.
The agency stated that its initial tax target of N10.7 trillion for 2023 was increased to N11.5 trillion due to the exchange rate.
Adedeji, chairman of FIRS, commented on the 2024 aim, saying, “What decides whatever we have comes from micro-economic indices because when the economy functions well, we would be taxing wealth rather than poverty.
“We’ll concentrate on the fruit, not the seeds. We must ensure that we have a sustainable economic environment that will lead to prosperity. And for us at FIRS, the goal is simply to have the system in place to aid in effective collecting.
“We are not a revenue-generating agency; rather, we collect income. Companies will flourish and prosper as a result of President Bola Tinubu’s economic revitalization strategy,” he stated.
Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, emphasized the importance of increased tax income in order for the government to fulfill its commitments to citizens in his goodwill message.
He stated, “First and foremost, I commend the FIRS chairman and the rest of his team for coming together right from the start of the fiscal year to rub minds and devise a strategy for increasing tax revenue.”
“The tax revenue in Nigeria is modest. The collection level should be substantially higher, as we have seen in other African countries, not to mention developed countries. It stands at 10% of the Gross Domestic Product (GDP), with the greatest level being approximately 55%.
“The chairman and his team have built on previous performance. FIRS exceeded his financial aim in 2023. However, they should do more. And that is what the chairman and his staff will be talking about for the next two days to ensure they finalize plans to significantly enhance internally generated revenue.”
Dr. Oluwatoyin Madein, the Federation’s Accountant-General, praised the FIRS for donating 70% of the federation’s overall earnings in her personal goodwill letter.
Nigeria has been making efforts to boost its tax income. During his 2024 budget presentation, President Tinubu stated: “We are now examining our tax and budgetary policies. Our goal is to increase the revenue-to-GDP ratio from less than 10% to 18% throughout this administration’s tenure. The government will work to reduce money leakages by effectively implementing major public financial management reforms.”
Source: PunchNG
