In a bold move, the Nigerian federal government has unveiled its strategy to meet a staggering revenue collection target of 19.4 trillion in 2024. Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), revealed this plan during the agency’s 2024 strategic management retreat in Abuja.
To achieve this ambitious goal, the government aims to prioritize voluntary tax compliance and implement a new organizational structure designed to modernize and digitize tax administration in the country. Adedeji emphasized that the new structure, scheduled to commence in February 2024, will play a pivotal role in revolutionizing tax administration.
“We want to use the new structure to drive voluntary compliance because the focus cannot be on litigation and investigation; that one will be for, say, 10 per cent of all our strategies. The real strategy is to drive voluntary compliance, and there will always be consequences for non-compliance, and that is where this structure is going,” Adedeji stated.
He further explained that by tailoring services to specific taxpayer segments, the aim is to streamline the taxpayer experience, making it user-friendly and devoid of complexities. The FIRS reported that it exceeded expectations in 2023 by generating N12.37 trillion in taxes, surpassing the 2022 record by N2 trillion.
The commitment to enhancing revenue generation and tax compliance is a crucial aspect of Nigeria’s economic landscape. As the country propels itself towards ambitious financial targets, the success of this initiative will have significant implications for its fiscal stability and overall development.
