The Federal Inland Revenue Service (FIRS) recorded its highest revenue of ₦6.4 trillion in 2021. The revenue collected in 2021 exceeded that of 2019 when the agency raked in ₦5.3 trillion under the administration of Babatunde Fowler.
Oluwatobi Wojuola, the spokesman to FIRS Chairman, who disclosed this via a statement said that despite the limitations faced in 2020 and 2021, the service achieved over 100 percent of its collection target.
“The FIRS, in the year 2021 collected a total of ₦6.405 trillion in both oil (₦2.008 trillion) and non-oil (₦4.396 trillion) revenues as against a target of ₦6.401 trillion,” Nami said.
“Companies Income Tax amounted to ₦1.896 trillion; Petroleum Profits Tax amounted to ₦2 trillion; Value Added Tax amounted to ₦2.07 trillion; Electronic Money Transfer Levy amounted to ₦114 billion; Earmarked Taxes amounted to ₦208.8 billion; among others.
“Non-oil sector contributed 69 percent of the total collection in the year, while oil sector’s contribution was 31 percent of the total collection.
“The Service issued certificates for the sum of ₦147.8 billion tax credit to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.”
Wojuola stated that in line with the law, 2021 income tax revenue was a function of the outcome of business activities in 2020.
“In that year, the country entered into a second economic recession within 5 years. The recession was occasioned by 5-months of lockdown caused by the Coronavirus pandemic.
“To compound the economic challenges of COVID-19 pandemic, business activities were disrupted by the End-SARS protests.”