Zacch Adedeji, head of the Federal Inland Revenue Service (FIRS), declared that the federal government is on pace to meet its N19.4 trillion revenue target in 2024. Adedeji made the announcement on Monday, attributing the progress to President Tinubu’s initiatives to fix tax collecting issues.
Adedeji stated that increasing crude oil output this year, combined with a greater emphasis on tax compliance, is helping to reverse the previous negative trend.
According to the FIRS chairman, the agency intends to improve tax efficiency by revising antiquated tax regulations such as the Stamp Duty Act, which was enacted in 1939, before the advent of internet connectivity and modern sociological elements.
“We set a target of 19.4 trillion naira for ourselves this year. “We are almost in the third quarter of the year and with the figures we are seeing so far, I can say we are on the path of achieving our target,” he said.
Tax and Fiscal Reforms to Boost Revenue
After taking office, President Tinubu established a tax and fiscal reform commission to improve revenue collection and strengthen the economy.
The committee, directed by Taiwo Oyedele, a famous tax expert, has implemented several fiscal measures, including tax breaks for manufacturers, farmers, and individuals who earn less than a specific monetary threshold.
The group has presented comprehensive reports to the president on tax collecting efficiency, reducing the number of taxes from approximately 60 to a single digit, and digitizing tax collection across numerous businesses.
In the first quarter of 2024, the FIRS announced that the country recorded N3.94 trillion in tax revenue a 56.7% increase from what was recorded in the same period the previous year.
What you should know
- Nigeria is grappling with one of its most severe cost of living crises in decades, with inflation reaching 33.4%, according to the National Bureau of Statistics (NBS).
- Despite being densely populated, with a large youth demographic, the country continues to face revenue shortfalls due to low economic output and widespread unemployment.
- Nigeria’s revenue-to-GDP ratio is among the lowest in Africa, contributing just 10.8% to the GDP.
- The 2024 budget is set at N27.5 trillion, with a revenue target of N19.4 trillion and a projected deficit of around N6 trillion.
- This budget prioritizes capital expenditure, aiming to address critical infrastructure challenges while also seeking to reduce the country’s debt-to-service ratio.
