The Federal Inland Revenue Service (FIRS) sets forth an ambitious goal to elevate tax revenue collection by 57 per cent, aiming to reach N19.4 trillion in 2024, as reported by Bloomberg.
The strategy outlines a focus on boosting oil revenues to N9.96 trillion, with non-oil tax revenue targeted at N9.45 trillion.
To achieve this substantial increase, FIRS plans to enhance operational efficiency and tax compliance through a comprehensive organizational restructuring that prioritizes taxpayers. Additionally, the implementation of advanced automation measures for tax collection is on the agenda.
A notable aspect of the plan involves internal reallocation from oil to non-oil sectors. The document emphasized this shift, stating, “Carry out internal reallocation from oil to non-oil, given that the budget oil revenue for 2024 was increased by 214 per cent compared to 2023 actual, while non-oil was increased by only 3 per cent.”
President Bola Tinubu’s ongoing reforms, aimed at bolstering government revenue, are highlighted in this context. The appointment of Mr. Taiwo Oyedele as the chair of the Presidential Committee on Fiscal Policy and Tax Reforms in July underscores the commitment to optimizing fiscal policies and tax regulations.
The committee’s Quick-win report, produced in October, is set to be implemented across Ministries, Departments, and Agencies (MDAs).
The overarching objectives include achieving an 18 per cent tax-to-GDP ratio in the next three years, curbing multiple taxation and tax evasion, and fostering a robust tax culture.
As of now, Nigeria’s current tax-to-GDP ratio stands at 10.86 per cent, falling below the African average.
In the first half of 2023, FIRS achieved a record half-year tax revenue collection of N5.5 trillion, positioning the agency to potentially surpass its N10.1 trillion collection for 2022.
The FIRS anticipates this momentum to contribute significantly to the ambitious 2024 target.
