FIRS generates N6.404tr, against N6.401 trillion
By Jeph Ajobaju, Chief Copy Editor
A total N6.404 trillion revenue was generated by the Federal Inland Revenue Service (FIRS) in 2021 against the target of N6.401 trillion, meaning a N300,000 surplus.
Collections remarkably bounced back from a shortfall by the third quarter ended September 2021 (Q32021) during which the FIRS generated N4.2 trillion, against N7.61 trillion target, but better than N5.076 trillion in Q3 2020.
FIRS Chairman Muhammad Nami said the target would have been met but for output curbs imposed on Nigeria by the Organisation of Petroleum Exporting Countries (OPEC).
He stressed that tax sources, including stamp duty, were ignored for a long time because of oil windfall but the FIRS has now embarked on unbundling tax administration.
Total 2021 revenue included N2.07 trillion Value Added Tax (VAT) which litigation Rivers Governor Nyesom Wike has accused the Supreme Court of deliberately stalling to continue to favour the federal government against states.
Nami announced that non-oil sector contributed 68.64 per cent of the total collection and oil sector 31.36 per cent.
“The FIRS, in the year 2021 collected a total of N6.404 trillion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion,” he said.
“Companies Income Tax amounted to N1.896 trillion; Petroleum Profits Tax amounted to N2 trillion; Value Added Tax amounted to N2.07 trillion; Electronic Money Transfer Levy amounted to N114 billion; Earmarked Taxes amounted to N208.8 billion; among others.
“The Service issued certificates for the sum of N147.8 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.”
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Deployment of technology
Nami said the 2021 income tax announcement was due to business activities in 2020 despite Nigeria entering recession, according to reporting by the News Agency of Nigeria (NAN), published by Nairametrics.
The deployment in June 2021 of “TaxPro Max”, a new automated tax administration system, was a game-changer that enabled taxpayers to experience ease with registration, reporting, payment, and issuance of Tax Clearance Certificates.
Nami said it has made service delivery easier and produced greater efficiency in the deployment of resources, leading to improved revenue collection.
“This was in spite of the strong opposition to FIRS statutory mandates by certain interests, which posed a major setback in the full implementation of its reforms.”