FIRS rakes in N10.1trillion revenue

• Published date: 24 January 2023
• Publication title: Nigeria - The Nation

The Federal Inland Revenue Service (FIRS) has announced that it collected over N10 trillion in tax revenue last year, the highest in its history.

The Service made this known in its 'FIRS 2022 Performance Update,' report signed by its Executive Chairman, Mr. Muhammad Nami, and released to the public yesterday, after his briefing with President Muhammadu Buhari.

'The FIRS, in 2022 collected a total of N10.1 trillion in oil (N4.09 trillion) and non-oil (N5.96 trillion) revenue as against a target of N10.44 trillion.

Giving reason the Service did not meet its target, Nami pointed fingers at distractions and waivers.

Nami lamented that distractions from some government agencies through instituted court cases, petitions and judgments granted contributed to the Service not meeting its target.

According to Nami, 'we received letters from potential taxpayers who wanted to pay us but could not because there were court judgments that transferred the collection of certain revenues to a different body other than the FIRS'.

Nami was however optimistic that the Service will do better in 2023.

In 2022, '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 per cent of the total collection in the year, while oil tax collection stood at 41 per cent of total collection,' the report noted.

It is the first time that the FIRS will cross the N10 trillion mark in tax revenue collection.

The report further clarified that included in the total revenue is N146.27 billion which is the total value of certificates issued by the Service 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.

The report also stated that the N10.1 trillion is exclusive of tax waived on account of various tax incentives granted under the laws, which amounted to N1,805,040,163,008.

Providing perspective to this unprecedented tax collection, the FIRS noted in the update that the Muhammad Nami-led management upon assumption of office came up with a four-point focus, namely: administrative and operational restructuring; making the service customer-focused; creating a data-centric institution; and automation of administrative and operational processes.

It further noted that from 2020 to 2022, the management introduced reforms on the four-point focuses which...