The Federal Government of Nigeria has set an ambitious tax revenue target of N19.4 trillion for the year 2024. This announcement comes on the heels of the Federal Inland Revenue Service’s (FIRS) successful collection of a record N12.37 trillion in tax revenue for the federation in 2023, surpassing the initial target of N10.7 trillion.
Dr. Zacch Adedeji, the Chairman of FIRS, expressed confidence in achieving the new target, attributing it to an effective tax collection system and a conducive economic environment for business growth. He emphasized the importance of focusing on taxing prosperity rather than poverty, highlighting the need for a thriving economic environment.
Breaking down the figures, Mrs. Amina Ado, one of the agency’s coordinating directors, revealed that oil revenue accounted for N3.17 trillion, representing 25.6% of the total, while non-oil revenue constituted 74.4% at N9.2 trillion.
The announcement was made during the opening of a two-day strategic management retreat held at the Congress Hall of Transcorp Hilton Hotel in Abuja on Wednesday. The agency also disclosed that its initial tax target for 2023 was revised upwards to N11.5 trillion due to exchange rate fluctuations.
Chairman Adedeji clarified FIRS’s role as a revenue collection agency rather than a revenue-generating one. He underscored the importance of creating a viable economic environment that would lead to prosperity, aligning with President Bola Tinubu’s plan to rejuvenate the economy.
In a goodwill message, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, commended the FIRS for surpassing its financial target in 2023. He emphasized the need to substantially increase internally generated revenue to enable the government to fulfill its responsibilities to citizens.
The Accountant-General of the Federation, Dr. Oluwatoyin Madein, also praised the FIRS for contributing 70% of the total revenues for the federation.
Nigeria has been actively pursuing strategies to boost tax revenues, and President Tinubu, during the 2024 budget presentation, highlighted ongoing reviews of tax and fiscal policies. The government aims to increase the ratio of revenue to GDP from less than 10% to 18% within the current administration’s term, coupled with efforts to minimize financial leakages through key public financial management reforms.
