The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has disclosed that the federal government is targeting a substantial 77 per cent increase in Internally Generated Revenue (IGR) during the opening session of the 2024 Strategic Management Retreat of the Federal Inland Revenue Service (FIRS).
The retreat, themed: “Re-imagining Tax Administration for Equity and Economic Growth,” saw Edun commend the FIRS management’s commitment to meeting revenue targets and emphasized the pivotal role of taxation in the government’s efforts to boost revenue, bridge infrastructure deficits, and establish social safety nets.
“We are projecting a 77 per cent increase in IGR. Our revenue as a percentage of Gross Domestic Product (GDP) is low at below 10 percent. It should be much higher. Government needs so much to spend on infrastructure and social services. The idea is to shift from expensive debts to domestic revenue mobilisation,” Edun stated.
Dr. Zacch Adedeji, the Executive Chairman of FIRS, used the occasion to unveil the new FIRS organizational structure, highlighting a customer-centric approach designed to streamline processes and enhance efficiency in tax operations.
“We are not merely adapting to change; we are leading it. The forthcoming structure set to kick off from February embodies our dedication to modernize and digitize the tax administration landscape in Nigeria,” Adedeji asserted.
He emphasized the shift towards an integrated tax approach leveraging technology, positioning FIRS at the forefront of innovation to meet the evolving needs of taxpayers. The new structure, starting in February, aims to simplify the taxpayer experience through tailored services, eliminating complexities and redundancies.
Amina Ado, the Coordinating Director of the Special Tax Operations Group at FIRS, disclosed a revenue target of N19.4 trillion for 2024. The Service surpassed its 2023 target of N10.7 trillion, generating N12.37 trillion. Ado highlighted that achieving the 2024 target relies partly on improved management of large taxpayers and sector contributors.
The ambitious revenue goal is expected to contribute significantly to addressing infrastructure needs and creating a more robust social safety net for ordinary Nigerians.
