Zacch Adedeji led-FIRS reveals tax collection rises by 56% to N3.94 trillion in Q1, 2024

The Federal Inland Revenue Service (FIRS) says tax collection in the first quarter of the year increased by 56% to N3.94 trillion when compared to the N2.52 trillion it collected in the same period of last year.

According to the News Agency of Nigeria (NAN), the Special Adviser to the FIRS Chairman, Femi Olarinde made this statement during a parley.

Olarinde credited these successes to the leadership of Dr. Adedeji. He observed that the rise in the number of taxpayers resulted from the emergence of more businesses, companies, and industries in the country.

He also highlighted that the new FIRS leadership has simplified tax processes and payments nationwide, making them more convenient and reducing the costs of compliance and administration.

Olarinde reported that the FIRS generated N12.3 trillion in revenue in 2023, surpassing the government’s target of N11.5 trillion by 7%.

He noted that for 2024, the government has set a target of N19.4 trillion for the FIRS. While he acknowledged this as a formidable challenge, he affirmed that it is achievable.

He stated, “As of the first quarter of this year, ending March 31, we have already collected 81 per cent of what is expected for the quarter, despite the first quarter being an off-peak period for tax payment.

“Specifically, in the first quarter of 2024, FIRS collected N3.94 trillion, which is N1.42 trillion or 56 per cent higher than the N2.52 trillion generated in the first quarter of the previous year.”

“June is normally the peak period for tax collection, and collation of figures for the second quarter is ongoing,”

Tax complaints resolution

He further stated that the FIRS resolved 3,148 complaints in the first quarter of the year, reducing the number of complaints by 18%. He emphasized that the key strategic drivers of the revenue service are focused on people, technology, and processes.

Also, he noted that the rationale behind the FIRS restructuring was to enhance effectiveness and cohesion, while integrating all its services into a streamlined process.

Olarinde also highlighted the launch of the National Single Window initiative, designed to stimulate economic growth and provide businesses with seamless access to the global market.

He explained that the initiative facilitates efficient and streamlined operations at the nation’s ports while harmonizing and boosting government revenue.

Additionally, Olarinde noted that the initiative is expected to improve tax compliance among international shipping companies transporting crude oil from Nigeria.

What you should know

In the first quarter of 2024, Company Income Tax (CIT) collected by the FIRS declined by 12.87% when compared to Q4, 2023. On the other hand, Value Added Tax (VAT) collection rose by 19.21% in the first quarter of 2024 to N1.43 trillion.

Source: Nairametrics.