Home BUSINESS BANKING & FINANCE Federal Revenue Service Breaks Record, Hits N10 Trillion Collection

Federal Revenue Service Breaks Record, Hits N10 Trillion Collection

The Federal Inland Revenue Service (FIRS) said it collected over N10 trillion in tax revenue in 2022, the highest ever recorded by the service.

The Service made this known in the FIRS 2022 Performance Update, signed by its Executive Chairman, Muhammad Nami.

The FIRS said that it 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.

A breakdown of the figures shows that company income tax (CIT) contributed N2.83 trillion; value-added tax (VAT), N2.51 trillion and electronic money transfer levy, N125.67 billion, while earmarked taxes were 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 the total collection,” the report noted.

It is the first time the FIRS would cross the N10 trillion mark in tax revenue collection. Included in the total revenue was N146.27 billion, which was 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 was exclusive of tax waived on account of various tax incentives granted under the respective laws, which amounted to N1.805 trillion.

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Providing perspective to this unprecedented tax collection, the FIRS noted the Muhammad Nami-led management came up with a four-point focus –administrative and operational restructuring, making the service customer-focused, creating a data-centric institution and automation of administrative as well as operational processes.

It further noted that throughout 2020 to 2022, the management had introduced reforms bordering the four-point agenda, which have produced results.

“The reforms introduced at different times in 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.

“As a result of a conducive environment created for staff, officers of the service are pulling their weight on the global stage with international recognitions and awards;

“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 the FIRS office,” the report read.

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