The Federal Government has set an ambitious revenue generation target for the Federal Inland Revenue Service (FIRS) at N25 trillion for 2025, slightly lower than the initially stated N25.2 trillion.
This goal was announced during a National Assembly session, where lawmakers praised the FIRS for exceeding its 2024 revenue target of N19.4 trillion by collecting a remarkable N21.6 trillion.
The Executive Chairman of the FIRS, Dr. Zacch Adedeji, disclosed this at a Strategic Management Retreat in Abuja, on Thursday.
According to him, the new target followed the N21.6 trillion revenue which the Service generated in 2024, significantly exceeding the year’s target of N19.4 trillion.
Adedeji said 2024 was a year in which his team positioned the organization to become “a globally recognized, efficient, and trusted revenue authority,” with a determination to grow the nation’s economy.
He promised to consolidate internal processes to further drive revenue generation.
“The FIRS’s mission for 2025 is ambitious: to create a service of excellence characterized by the expertise of its staff, the modernization of its facilities, and the innovative use of technology to improve processes.
“This mission is not just about sustaining success but consistently enhancing impact and solidifying the FIRS’s position as a model revenue authority globally,” he said.
Adedeji outlined a strategic roadmap centered on three key pillars: Capacity Building and Training: Infrastructure and Facility Enhancement; and Technological Advancement.
Amina Ado, Coordinating Director of the Large Taxpayers Group identified automation, the introduction of TaxProMax, the use of third-party data for intelligence, expanded use of withholding tax, improved debt collection, and organizational reforms, as some of the factors responsible for the Service’s high performance.
She revealed that in 2024, all non-oil tax types surpassed their targets. Comparing 2023 to 2024, all tax types performed better in 2024.
Oil taxes increased by 35%, non-oil taxes increased by 97%, and the overall increase was 76%. Under Stamp Duties, transaction counts increased by 16%, and collections increased by 149%. Integration of tax offices and concluded audit cases increased by 62%, with collections increasing by 83%.
Improvements in debt management and enforcement resulted in a 119% increase in FIRS recoveries in 2024 compared to 2023.
Education Tax (EDT) was impacted by the implementation of the 3% rate and the exchange rate. Value Added Tax (VAT) collections improved due to enhanced withholding tax, both local (including government) and international, and higher consumption.
Stamp Duty (SD) collections saw improved debt collection and higher receipts from the government and the oil and gas sector. NASENI/PTF collections benefited from the recognition of 2023 revenues in 2024, higher compliance, and the exchange rate.
Several experts were invited to speak to the FIRS management team at the retreat with the theme, “Building a High-Performing FIRS: Elevating Performance Through Collaboration and Innovation.”
Focus areas included facilities under which the organization aimed at optimal facilities as a catalyst to raise productivity.
This included enhancing physical infrastructure and improving facilities management to create a conducive work environment that supports productivity and efficiency.
The retreat also focused on enhancing its operations through leveraging cutting-edge technology, as well as, human capital with deeper career and skills development.
Author
Leave a comment