Nigeria’s federal government is setting its sights on a substantial 57% boost in revenue collection by 2024. The country’s foremost tax collection agency, the Federal Inland Revenue Service, projects a surge in revenue to 19.4 trillion nairas ($20.3 billion) in 2024, a significant leap from the previous year’s figures as reported by Bloomberg.
According to the report, the government anticipates 9.96 trillion nairas in tax revenue from oil and 9.45 trillion nairas in non-oil revenue. The agency also plans to redistribute internally from oil to non-oil, prompted by a 214% increase in budgeted oil revenue for 2024 in comparison to the 2023 actual figures, while non-oil revenue was raised by a mere 3%.
Last year, President Bola Ahmed Tinubu appointed a Presidential Committee on Fiscal Policy and Tax Reforms led by Taiwo Oyedele to invigorate revenue collection efforts. This initiative gains momentum as the FIRS achieved a record-breaking tax revenue collection of 5.5 trillion nairas in the first half of 2023, positioning the agency to surpass its 2022 collection of 10.1 trillion nairas.
The Nigerian government’s ambitious revenue targets reflect a dynamic fiscal landscape and a resolute commitment to bolstering the country’s financial stability and growth.
