FIRS and Customs fetch N12tr revenue into federal coffers

FIRS and Customs fetch N12tr, up 46.8% YoY

By Jeph Ajobaju, Chief Copy Editor

A total N12.7 trillion revenue was generated by the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) in 2022, a 46.8 per cent increase year-on-year (YoY) from N8.7 trillion they both collected in 2021.

National Bureau of Statistics (NBS) data shows government agencies, including Nigerian Upstream Petroleum Regulatory Commission (NUPRC), formerly Department of Petroleum Resources (DPR), received 2.6 per cent of total revenue collected (N462.81 billion) as cost of collection.

This represents a 29.6 per cent increase year-on-year (YoY) versus N329.34 billion (3.81 per cent) the agencies withdrew as cost of collection in 2021.

Agencies collect revenue from different sources, including Value Added Tax (VAT), oil revenue, and Company Income Tax (CIT).

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Breakdown of collection

The NBS disclosed the FIRS collected N10.1 trillion revenue in 2022 and received N200.16 billion or 2 per cent of it as cost of collection.

The NCS garnered N2.60 trillion revenue and withdrew N128.64 billion (5 per cent) as cost of collection.

The NUPRC, which has no data of its revenue collection on its website, received N98.01 billion in 2022, a 17.4 per cent rise compared with N83.51 billion received as collection in 2021, per reporting by Vanguard.

Abuja introduced amendments to the Finance Act 2022 to increase revenue. The Act stipulates, among others,

• Digital assets, including cryptocurrency, would be recognised as chargeable assets and gains accruing from the disposal of such digital assets are subject to capital gains tax at the rate of 10 per cent.

• Increase in Tertiary Education Tax (TET) rate from 2.5 per cent to 3.0   per cent.

• Increase in corporate tax rate of companies engaged in gas flaring from 30 per cent to 50 per cent.

• A levy of 0.5 per cent on all eligible goods imported into Nigeria from outside Africa.

• Taxes on Non-Resident Companies (NRCs) with digital presence in Nigeria.