FIRS records N10.1trn revenue collection in 2022

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.

The Service made this known in its ‘FIRS 2022 Performance Update’ report signed by its Executive Chairman, Muhammad Nami, and released to the public today.

The FIRS explained that it 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.


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The Companies Income Tax, it said contributed N2.83 trillion; Value Added Tax, N2.51 trillion; Electronic Money Transfer Levy, N125.67 billion; and Earmarked Taxes, N353.69 billion.

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The non-oil taxes, the report said contributed 59 per cent of the total collection in the year, while oil tax collection stood at 41 per cent of total collection.

The Performance Update Report also 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 N10.1 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 perspectives to this development, the FIRS noted that the current 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.

The revenue agency pointed out that over the period of 2020 to 2022, the management introduced reforms bordering on the four-point focus, saying the strategy was producing results.

“The reforms introduced at different times from 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 report added.

The Service, the report said had also automated most of its 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 on January 1, 2023, while taxpayers had already downloaded over 1,000 TCCs this year without having to visit the FIRS office,” the report stated.

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

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    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 was through these reforms, framed around the four-focus points, that the Service was able to achieve this collection.

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    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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