The Federal Inland Revenue Service (FIRS) has reported a historic tax collection of N12.374 trillion in 2023, surpassing the set target of N10.7 trillion for the year.
The announcement was made by FIRS Chairman, Zacch Adedeji, during a strategic management retreat in Abuja.
Adedeji disclosed that the Federal Government has set a challenging target of N19.4 trillion for 2024, emphasizing that achieving this goal is plausible through the implementation of an effective tax collection system and the creation of a conducive economic environment for business growth.
The breakdown of the figures revealed that oil revenue contributed N3.17 trillion (25.6%), while non-oil revenue accounted for N9.2 trillion (74.4%).
The increase in non-oil tax revenue was attributed to improved efficiency in tax collection across various categories.
During the strategic retreat, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, applauded the FIRS for exceeding its 2023 target and urged further efforts to increase tax revenue in line with global trends.
The FIRS Chairman, Zacch Adedeji, presented the agency’s new organizational structure, set to commence in February 2024.
The innovative approach includes a customer-centric model designed to streamline processes and enhance efficiency in tax operations.
Adedeji highlighted the shift from traditional tax categorization to tailored taxpayer segments based on thresholds, aiming to simplify the taxpayer experience.
The Coordinating Minister emphasized the need for increased internally generated revenue and challenged the FIRS to substantially boost its performance, echoing the sentiments of the Accountant-General of the Federation, Mrs Oluwatoyin Madein, who commended the FIRS for contributing 70% of total federation revenues but urged the agency to challenge the status quo for continued growth.