The Nigerian Senate recently approved a budget of N446.3 billion for the Federal Inland Revenue Service (FIRS) for the year 2024. This decision was made following the recommendation of the Senate Committee on Finance, chaired by Senator Sani Musa.
The breakdown of the budget includes N177.4 billion for Personnel Costs, N156.5 billion for Overhead costs, and N112.4 billion for capital expenditure. The committee noted that the budget is based on Zero Based Budgeting, with a projected cost of collection of N446.34 billion, representing a 39% increase from the previous year.
The increase in overhead costs is attributed to the need for more operational activities to drive the achievement of the FIRS’s core objectives, such as tax automation projects. The capital cost estimates include ongoing and new projects aimed at enhancing revenue generation.
It is important to highlight that the House of Representatives Committee on Finance had also approved the same budget amount for FIRS last month.
This significant budget approval underscores the government’s commitment to strengthening tax collection and administration in Nigeria. The FIRS plays a crucial role in revenue generation, and this budget allocation will support its efforts in achieving its objectives for the year 2024.
