FIRS generates N10.1tr revenue, crosses N10tr threshold for first time
By Jeph Ajobaju, Chief Copy Editor
A total N10.1 trillion revenue was generated by the Federal Inland Revenue Service (FIRS) in 2022, which crossed the N10 trillion watermark for the first time but was N34 billion short of target.
“The FIRS, in the year 2022 collected a total of N10.1 trillion in both oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues as against a target of N10.44 trillion,”
FIRS Chairman Mohammed Nami disclosed in his 2022 performance report.
“Companies Income Tax contributed N2.83 trillion; Value Added Tax N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Taxes N353.69 billion.
“Non-oil taxes contributed 59% of the total collection in the year, while oil tax collection stood at 41% of total collection.”
The N10.1 trillion revenue included N146.27 billion as total value of certificates the FIRS issued to private investors and to the Nigerian National Petroleum Company (NNPC) for road infrastructure.
It also included tax waivers granted which amounted to N1.81 trillion, according to the FIRS.
It listed factors that helped generate the revenue to include
- administrative and operational restructuring
- making the service customer-focused
- creating a data-centric institution
- automation of administrative and operational processes.
“The reforms introduced at different times from 2020 are gradually yielding fruits.
“By the close of 2022, the Service had fully restructured the administration of the Service for maximum efficiency and achieved internal cohesion such that all functional units are working in unison towards the achievement of set goals.”
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Conducive work environment
“As a result of conducive environment created for staff, officers of the Service are pulling their weight on the global stage with international recognitions and awards, Nami said, according to reporting by Vanguard.
“The Service had also automated most of the administrative and operational processes. A major leap was the full deployment of the TaxPro Max for end-to-end administration of taxes in June 2021.
“The module for the automated TCC went live 1st January 2023 while taxpayers had already downloaded over 1,000 TCCs this year without having to visit FIRS office.”
There has been a “dogged implementation of strategic reforms over the past two years; a renewed commitment by officers of the Service, accompanied with a boosted morale; as well as the innovative deployment of technology for automation of both tax administration and operational processes.
Collaboration with stakeholders
“This collection was possible through collaboration with our stakeholders, from our colleagues at the Executive branch of government, to the members of the judiciary, to our brothers and sisters at the National Assembly, as well as the tax advisory committee, professional bodies, unions, and most crucially our taxpayers.
“We intend to maintain, and even improve on the momentum in 2023. We have peaked, but this is not certainly our peak. In fact, my hope is that this would be the least sum the Service would ever collect going forward.
“Our goal is to identify more areas where we can improve on in the delivery and efficiency of our collection; and plug loopholes, while deploying innovative reforms in data and artificial intelligence.
“Ultimately, we believe that the FIRS can shoulder the responsibility of providing revenue needed for the governments across the Federation to cater for the needs of the Nigerian people through taxes.
“This is feasible once we get the much-desired support from the three tiers and arms of government, as well as all stakeholders.”