Sat, Sep

Revenue Collection: FIRS Generates Over N10 Trillion

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The Federal Inland Revenue Services (FIRS), on Monday, disclosed a sum of over N10 trillion was collected in tax revenue in 2022, making it the highest tax collection in the history of the organization.

Recall in 2021, FIRS achieved a record tax collection of about N6.405 trillion.

The Service built on the success of the preceding year in 2022 with a record collection of N10.1 trillion, over 96% of its collection target for the year, making it the first time it crossed the 10 trillion naira milestone.

Details of the collection were contained in a report titled “FIRS 2022 Performance Update,” signed by FIRS executive chairman, Muhammad Nami, who briefed President Muhammadu Buhari on Monday.

According to the report, the 2022 collection, which amounted to N10.1 trillion in both oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues, was slightly below the target of N10.44 trillion.

While Company’s Income Tax generated N2.83 trillion, Value Added Tax was N2.51 trillion, with Electronic Money Transfer Levy and Earmarked Taxes bringing in N125.67 billion and N353.69 billion respectively.

Overall, non-oil taxes made up 59% of the total collection while the remaining 41% was oil tax collection.

Of the total revenue, the sum of N146.27 billion was realised from certificates issued by FIRS 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 respective laws, which amounted to N1,805,040,163,008.

The report, which noted that the 2022 collection was almost a one hundred percent increase over the 2020 tax collection, attributed the performance of the service to the various reforms introduced at different times since 2020.

FIRS, according to Nami, will achieve full automation in 2023, build on the current reforms, and continue to establish a resilient service that would continue to provide sustainable tax revenue to fund the government.