FIRS Records Highest Tax Cumulative of N10.1trn in 2022

The Federal Inland Revenue Service (FIRS) total tax revenue hit its peak in 2022 as it recorded its highest tax collection ever of N10.4 trillion.

This was contained in the FIRS 2022 Performance update report issued by its Executive Chairman, Muhammad Nami.

Investors King gathered that the FIRS had a set target of generating N10.44 trillion but attained N10.1 trillion which is 96.7 percent of its initial aim for 2022.

The FIRS report hinted that the tax revenue derived from the non-oil sector is 59 percent of the total collection while the tax from the oil sector is 41 percent of the total collection.

It noted that taxes waived on account of tax incentives backed by law were not included in the N10.1 trillion recorded. This waived taxes amounted to N1.805 trillion.

“The FIRS, in the year 2022 collected a total of N10.1 trillion from both oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues as against a target of N10.44 trillion, Companies Income Tax contributed N2.83 trillion, Value Added Tax contributed N2.51 trillion; Electronic Money Transfer Levy contributed N125.67 billion and Earmarked Taxes contributed N353.69 billion.

“The FIRS received 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 stated.

Investors King recalls that its tax collection record for 2021 was N6.405 trillion surpassing its target for the year and the first time it reached six trillion. 

The FIRS Chairman harped on his administration’s four-point agenda which has made progress achievable in the agency. This includes– administrative and operational restructuring; making the service customer-focused; creating a data-centric institution; and automation of administrative and operational processes.

Nami further said that various reforms were initiated in the body from 2020 to 2022 which involved operationalisation of data, automated administrative processes, use of an analysis system for profiling taxpayers backed up with data.

On 2023 operations, the FIRS boss said the current working system will be enhanced to continually provide quality service for taxpayers while the government gets the needed tax for its funding.

 He said, “our goal is to identify more areas where we can improve on in the delivery and efficiency of our collection; and plug loopholes, while deploying innovative reforms in data and artificial intelligence; Ultimately, we believe that the FIRS can shoulder the responsibility of providing revenue needed for the governments across the Federation to cater for the needs of the Nigerian people through taxes.”