In a bid to significantly enhance tax revenue collection, the Federal Inland Revenue Service (FIRS) has announced plans to achieve a 57% increase, targeting a total of N19.4 trillion. This revelation comes as reported by Bloomberg.
According to documents quoted by Bloomberg, FIRS aims to raise N9.96 trillion from oil revenues and N9.45 trillion from non-oil tax revenue. To attain this ambitious goal, the agency intends to implement organizational restructuring prioritizing taxpayers and introduce additional automation measures for tax collection.
The FIRS also outlined a strategy to internally reallocate funds from oil to non-oil, citing a substantial increase in the budgeted oil revenue for 2024 compared to the previous year, while non-oil saw only a modest 3% increment.
President Bola Tinubu’s ongoing reforms, aimed at bolstering government revenues, have been underscored by the appointment of Mr. Taiwo Oyedele as the chair of the Presidential Committee on Fiscal Policy and Tax Reforms in July. The committee, composed of representatives from various sectors, including the public and private sectors, civil society groups, and students, released its Quick-win report in October, with President Tinubu ordering its implementation across MDAs.
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The committee’s mandate focuses on refining fiscal policy, tax laws, and regulations, streamlining tax collection, and achieving a commendable tax-to-GDP ratio of 18% within the next three years. Nigeria’s current tax-to-GDP ratio stands at 10.86%, falling below the continental average.
In the first half of 2023, FIRS achieved a record tax revenue collection of N5.5 trillion, positioning the agency to surpass its N10.1 trillion collection target for 2022. The government remains committed to addressing multiple taxation, tax evasion, and fostering a robust tax culture in line with the committee’s objectives.