In a bid to boost its fiscal standing, the Federal Government of Nigeria has established a tax revenue target of N19.4tn for the year 2024. This ambitious goal follows the notable achievement of the Federal Inland Revenue Service (FIRS), which surpassed the 2023 target by collecting a record N12.37tn in tax revenue, exceeding the initial goal of N10.7tn.
Chairman of FIRS, Dr. Zacch Adedeji, expressed confidence in the attainability of the new target, citing an effective tax collection system and a conducive economic environment for business prosperity. The breakdown of the 2023 tax revenue revealed that oil revenue accounted for N3.17tn, representing 25.6%, while non-oil revenue stood at N9.2tn, constituting 74.4% of the total.
The announcement was made during a two-day strategic management retreat held at the Congress Hall of Transcorp Hilton Hotel in Abuja, as reported by Dare Adekanmbi, the Special Adviser on Media to the FIRS chairman.
Adedeji emphasized the importance of macroeconomic indices in determining revenue outcomes, stating, “When the economy runs well, we are going to be taxing prosperity, not poverty. We will focus on the fruits and not the seeds.” He underlined FIRS’s role as a revenue-collection agency, aiming to support the economic revival initiatives outlined by President Bola Tinubu.
In a goodwill message, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, highlighted the need for increased tax revenue to enable the government to fulfill its responsibilities to the citizens. Edun commended FIRS for exceeding its financial target in 2023 and encouraged further efforts to substantially increase internally generated revenue.
The Accountant-General of the Federation, Dr. Oluwatoyin Madein, also praised FIRS for contributing 70% of the total revenues for the federation. President Tinubu, during the 2024 budget presentation, emphasized ongoing reviews of tax and fiscal policies, targeting an increase in the revenue-to-GDP ratio from less than 10% to 18% within the administration’s term. The government aims to contain financial leakages through effective implementation of key public financial management reforms.