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NGX All-Share Index Up 0.12% To 52,657.69 Points

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By Adedapo Adesanya

The Federal Inland Revenue Service (FIRS) has announced that it collected over N10 trillion in tax revenue in the year 2022, the highest tax collection ever recorded in its history.

In a statement seen by Business Post, signed by Mr Johannes Oluwatobi Wojuola, Special Assistant to the Executive Chairman, Mr Mohammed Nami, on Monday, it was stated that about N10.05 trillion was collected in the year under review.

A breakdown showed that N4.09 trillion came from oil revenues (41 per cent) and N5.96 trillion from non-oil revenues (59 per cent).

FIRS claimed that this broke the record previously set in 2021 in its FIRS 2022 Performance Update, signed by its Executive Chairman, on Monday, after his briefing with President Muhammadu Buhari.

“The FIRS, in the year 2022, collected a total of N10.1 trillion in 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 N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Taxes N353.69 billion,” it stated.

The Performance Update Report further clarified that included in the total revenue sum was the sum of N146.27 billion, which was 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 also stated that the N10.05 trillion is exclusive of tax waived on account of various tax incentives granted under the respective laws, which amounted to N1,805,040,163,008.

Providing perspective to the unprecedented collection, the FIRS noted in the Performance Update that the Mr Nami-led management, upon assumption of office, came up with a four-point focus, namely: administrative and operational restructuring; making the service customer-focused: creating a data-centric institution, and automation of administrative and operational processes.

It further noted that over the period of 2020 to 2022, the management had introduced reforms bordering around these four-point foci, which were producing results.

“The reforms introduced at different times in 2020 are gradually yielding fruits. By the close of 2022, the Service had fully restructured the administration of the service for maximum efficiency and achieved internal cohesion such that all functional units are working in unison towards the achievement of set goals.

“As a result of the conducive environment created for staff, officers of the Service are pulling their weight on the global stage with international recognitions and awards; “The Service had also automated most of the administrative and operational processes. A major leap was the full deployment of the TaxPro Max for end-to-end administration of taxes in June 2021. The module for the automated TCC went live 1st January 2023 while taxpayers had already downloaded over 1,000 TCCs this year without having to visit FIRS office.”

It also noted that the Service had operationalised its data mining and analysis system, thereby allowing for data-backed taxpayer profiling.

Other reforms the service introduced in this period focused on the detoxification of the tax environment by ridding it of mutual mistrust, negative tax morale, and tax evasion through effective taxpayer education, open engagement with stakeholders and improved services.

It noted that it is courtesy of these reforms, framed around the four-focus points, that the Service was able to achieve this collection.

Speaking on the development, Mr Nami stated that this was made possible through “dogged implementation of strategic reforms over the past two years; a renewed commitment by officers of the Service, accompanied with a boosted morale; as well as the innovative deployment of technology for automation of both tax administration and operational processes.

“This collection was possible through collaboration with our stakeholders, from our colleagues at the Executive branch of government to the members of the judiciary, to our brothers and sisters at the National Assembly, as well as the tax advisory committee, professional bodies, unions, and most crucially our taxpayers.”

Speaking on the outlook for 2023, Mr Nami stated that the Service would build on the current reforms, achieve full automation and continue to establish a resilient service that would continue to provide sustainable tax revenue to fund the government.

“We intend to maintain and even improve on the momentum in 2023,” he stated.

“We have peaked, but this is not certainly our peak. In fact, I hope this will be the least sum the service will ever collect going forward.

“Our goal is to identify more areas where we can improve 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 the revenue needed for the governments across the Federation to cater for the needs of the Nigerian people through taxes.

“This is feasible once we get the much-desired support from the three tiers and arms of government, as well as all stakeholders.”

In 2021, the service achieved a record tax collection of N6.405 trillion, over 100 per cent of its collection target for the year, as well as the first time that the Service will cross the six trillion mark.

The cord collection of N10.1 trillion is over 96 per cent of its collection target for the year, and for the first time, the service will cross the ten trillion mark.

This collection represents an over 100 per cent leap from the tax collected by the agency in 2020-the first year of the current management of the organisation.





Read More:
NGX All-Share Index Up 0.12% To 52,657.69 Points

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