Nigeria's FIRS sets record with N12.374 trillion tax collection in 2023

The Federal Inland Revenue Service (FIRS) of Nigeria achieved a record tax collection of N12.374 trillion in 2023, surpassing the year’s target of N10.7 trillion. The Chairman of FIRS, Zacch Adedeji, made this announcement during a two-day strategic management retreat. The oil revenue accounted for N3.17 trillion (25.6%), while non-oil revenue contributed N9.2 trillion (74.4%). The agency’s target for 2024 is N19.4 trillion. The increase in non-oil tax revenue was attributed to improved efficiency in tax collection, exceeding targets in various tax types.

FIRS Chairman, Zacch Adedeji, revealed the Federal Government’s target of N19.4 trillion for 2024. He emphasized the achievability of the target with an effective tax collection system and a conducive economic environment. The agency unveiled a new organizational structure during the retreat, focused on customer-centricity, efficiency, and modernization. The structure, set to begin in February 2024, aims to streamline processes and enhance tax operations.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, commended FIRS for surpassing the 2023 target and urged the agency to aim for higher tax revenue in line with global trends. Despite the success, challenges lie ahead, and Adedeji stressed the importance of a viable economic environment and efficient collection systems. The new structure embodies FIRS’s commitment to modernize and digitize tax administration in Nigeria.

The Accountant-General of the Federation, Oluwatoyin Madein, acknowledged FIRS for contributing 70% of total federation revenues. She encouraged FIRS to challenge the status quo, expand the tax base, and seek new ways and partnerships for tax revenue growth. Madein emphasized that strategic cooperation within FIRS and partnerships could set a new standard for tax administration in Africa.

While celebrating the record tax collection, the focus remains on sustaining and surpassing these achievements. The discussions at the retreat centered on finalizing plans to substantially increase internally generated revenue, aligning with the government’s economic goals and fiscal responsibilities.