The Federal Inland Revenue Service (FIRS) has a mandate to generate N25.2 trillion in tax revenue this fiscal year, its Executive Chairman, Dr. Zacch Adedeji, confirmed yesterday.
This ambitious target followed the agency’s historic achievement last year. It raked N21.6 trillion last year, surpassing its N19.4 trillion goal.
Adedeji described the 2024 performance as a landmark in Nigeria’s tax administration history.
He said: ‘The year 2024 was pivotal in laying a solid foundation for transforming the FIRS into a globally recognised, efficient, and trusted revenue authority. It marked a period of strategic growth, positioning the Service as a cornerstone of Nigeria’s economic progress’.
The FIRS boss stressed the need for sustained momentum, strategic reforms and institutional consolidation.
He noted that the Service is committed to achieving long-term resilience and operational excellence, with a focus on three key pillars: capacity building and training, infrastructure and facility enhancement, and technological advancement.
Adedeji said: ‘This year, our mission is both ambitious and transformative: to build a service of excellence defined by the expertise of our people, the modernisation of our facilities, and the innovative use of technology to enhance our processes.
‘This mission is not just about sustaining our success but about consistently elevating our impact and solidifying our position as a model revenue authority on the global stage’.
Providing an insight into the tax revenue performance over the years, the Coordinating Director of the Large Taxpayers Group, Mrs. Amina Ado, attributed the sustained growth in tax collections to a combination of administrative reforms, policy adjustments, and macroeconomic factors.
She noted several major administrative reforms, including the automation of tax processes, the introduction of the TaxProMax platform, the use of third-party data for intelligence gathering, expanded application of Withholding Tax (WHT), improved debt collection strategies, and extensive organizational restructuring.
According to her, policy reforms also played a significant role, with measures such as an increase in the Value Added Tax (VAT) rate, adjustments to Education Tax rates, and improvements in tax laws through the enactment of Finance Acts.
She added that additionally, macroeconomic factors -such as fluctuations in the exchange rate and inflation -contributed to the revenue surge.
Mrs Ado noted that significant shifts in tax revenue growth were recorded in 2022 and 2024, largely driven by a combination of administrative and policy reforms alongside changing economic conditions.
The performance across various tax categories in 2024 showed remarkable growth: under Company Income Tax (CIT), the expiration of tax exemptions on Treasury Bills and Corporate Bonds, the removal of the 10 per cent investment allowance, and improved remittances from government entities all contributed to higher CIT collections.
Education Tax (EDT), the implementation of a three per cent EDT rate and exchange rate fluctuations helped increase revenue.
The VAT, through increased application of Withholding Tax (WHT) on both local and international transactions, coupled with higher consumer spending, led to improved VAT collections.
In the case of Stamp Duties (SD), debt collection efforts intensified and government receipts increased, leading to substantial revenue growth.
The recognition of 2023 tax liabilities last year, higher compliance levels and exchange rate influences contributed to increased collections under the NASENI/PTF levies.
When comparing, all tax types in the previous two years recorded significant improvements.
Oil-related tax revenue grew by 35 per cent, while non-oil tax collections surged by 97 per cent. Overall, total tax revenue increased by an impressive 76 per cent.
Under the Stamp Duties category, the volume of transactions grew by 16 per cent, while revenue collections soared by 149 per cent.
Similarly, the integration of tax offices and the conclusion of audit cases resulted in a 62 per cent increase in assessments and an 83 per cent rise in tax collections. Notably, the FIRS’ debt recovery efforts in 2024 yielded a 119 per cent improvement compared to the previous year.
With an N25.2 trillion revenue target for this year, the FIRS is setting its sights on even greater efficiency and innovation in tax collection.
The Service plans to consolidate on past achievements by reinforcing its workforce through enhanced capacity-building programmes, upgrading its technological infrastructure, and strengthening its institutional framework to ensure sustained compliance and efficiency in tax administration.
Dr. Adedeji guaranteed the commitment of the FIRS to meeting and surpassing expectations, ensuring that tax revenue remains a critical driver of Nigeria’s economic stability and growth.
‘As we step confidently into 2025, we must carry forward the momentum of these achievements with renewed energy, a clear vision, and a meticulously designed roadmap’, he stated.
