The Nigerian government has set an ambitious tax revenue target of N19.4 trillion for the year 2024, following a record-breaking collection of N12.37 trillion by the Federal Inland Revenue Service (FIRS) in 2023. This significant achievement surpassed the initial target of N10.7 trillion.

Dr. Zacch Adedeji, the Chairman of FIRS, expressed confidence in achieving the new target, citing an effective tax collection system and a conducive economic environment for business growth as key factors. The breakdown of the revenue revealed that oil contributed N3.17 trillion, accounting for 25.6% of the total, while non-oil revenue stood at N9.2 trillion, representing 74.4%.

These revelations were made at a strategic management retreat held at the Congress Hall of Transcorp Hilton Hotel in Abuja. Mrs. Amina Ado, one of the agency’s coordinating directors, provided the detailed financial breakdown, emphasizing the agency’s adaptability in revising the 2023 target from N10.7 trillion to N11.5 trillion due to exchange rate dynamics.

Chairman Adedeji emphasized the importance of a thriving economy in driving tax prosperity, stating, “We will focus on the fruits and not the seeds. We need to ensure we have a viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection.”

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, commended FIRS for its performance in surpassing the 2023 financial target and urged further efforts to substantially increase internally generated revenue. He stressed the need for Nigeria to raise its tax revenue, citing the current 10% of Gross Domestic Product (GDP) as low compared to other African and developed countries.

Dr. Oluwatoyin Madein, the Accountant-General of the Federation, hailed FIRS for contributing 70% of the total revenues for the federation. These efforts align with President Tinubu’s commitment to enhancing tax and fiscal policies, aiming to elevate the revenue-to-GDP ratio from less than 10% to 18% during the administration’s term. The government also aims to curb financial leakages through the effective implementation of public financial management reforms.

The Nigerian government’s proactive approach to revenue generation underscores its commitment to economic stability and sustainable development.