The chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has stated that the federal government is on track to achieve its N19.4 trillion revenue target for 2024.
Adedeji made this statement on Monday, attributing the progress to President Tinubu’s initiatives aimed at addressing tax collection deficiencies.
Adedeji noted that increased crude oil production this year, along with a stronger focus on tax compliance, is helping to reverse the previous downward trend.
According to the FIRS chairman, the agency plans to boost tax efficiency by overhauling outdated tax laws, such as the Stamp Duty Act, which was established in 1939, before the existence of internet connectivity or any modern societal features.
“We set a target of 19.4 trillion naira for ourselves this year.
“We are almost in the third quarter of the year and with the figures we are seeing so far, I can say we are on the path of achieving our target,” he said.
Tax and Fiscal Reforms to Boost Revenue
Following his assumption into office, President Tinubu inaugurated a tax and fiscal reform committee to enhance the efficiency of tax collection as well as boost the economy in general.
The committee which is headed by Taiwo Oyedele, a renowned tax expert, has rolled out some fiscal measures which include tax exemptions for manufacturers, farmers and those who earned below a certain monetary benchmark.
The committee has submitted its all-inclusive reports to the president, which cover efficiency in tax collection, reduction of the number of taxes from about 60 to single digit and also the digitization of tax collection across multiple industries.
In the first quarter of 2024, the FIRS announced that the country recorded N3.94 trillion in tax revenue a 56.7% increase from what was recorded in the same period the previous year.
What you should know
- Nigeria is grappling with one of its most severe cost of living crises in decades, with inflation reaching 33.4%, according to the National Bureau of Statistics (NBS).
- Despite being densely populated, with a large youth demographic, the country continues to face revenue shortfalls due to low economic output and widespread unemployment.
- Nigeria’s revenue-to-GDP ratio is among the lowest in Africa, contributing just 10.8% to the GDP.
- The 2024 budget is set at N27.5 trillion, with a revenue target of N19.4 trillion and a projected deficit of around N6 trillion.
- This budget prioritizes capital expenditure, aiming to address critical infrastructure challenges while also seeking to reduce the country’s debt-to-service ratio.
