The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, on Wednesday disclosed that the service generated a total of N3.94 trillion in tax revenue in the first quarter of the year, representing about N860 billion lower than its quarterly revenue target of N4.80 trillion.
Adedeji, who gave these figures when the leadership of the Chartered Risk Management Institute of Nigeria (CRMI), led by its President/Chairman of the Governing Council, Dr. Ezekiel Oseni, paid him a courtesy visit at the FIRS’ headquarters in Abuja.
He said the Q1 2024 performance represented 56.7% increase over the revenue collections the Service recorded in the corresponding quarter of 2023.
Adedeji, who was represented at the meeting with the CRMI’s leaders by his Chief of Staff, Mr. Tayo Koleosho, restated the tax agency’s commitment to intensifying efforts to surpass its N19.4 trillion target for fiscal year 2024.
The tax administrator clarified: “Over the years through the various administrations, the service has maintained its mandate of generating revenue and meeting government’s targets.
“We will continue to make giants stride and we take pride in meeting and surpassing our revenue collection targets for the federation with constant collaboration with stakeholders like the CRMI.
“We have resolved to create an environment of growth by removing every obstacle in the way of corporate entities and ensure a tax administration that is friendly, customer-centric and ready to help businesses to bear more fruits”, Adedeji assured.
In his remarks, the CRMI President said the visit was made to the FIRS to invite it to become a Council member of the Institute “just like we have the Central Bank of Nigeria (CBN) and other reputable institutions like the Federal Ministry of Education”.
Oseni maintained that imbibing risk management practices would help the service in its mandate of tax administration and positively on businesses and economy in general.
He expatiated: “So, with risk management, it would be easier for them to identify the loopholes and also be able to mitigate the risk that could emanate for those loopholes.
“Being a risk management practitioner, it’s necessary for them to embrace risk management in respect of their profession. Even in tax collection, you need to be risk conscious”, the CIRM President added.
He stressed that adherence to risk practices will improve revenue by plugging the loopholes that people could take undue advantage of, to either evade tax or avoid tax altogether.
Oseni further clarified: “By the time you identify these loopholes, you’ll be able to see how you can manage them even before you amend the law and be able to minimize, the abuse of these kind of loopholes that tax evaders and people that avoid taxes can take undue advantage of. So, it’s going to help them to improve tax collection.”
The CIRM chief hinted that the Institute is drafting a bill for consideration by the National Assembly to promote risk management practice in ministries, departments, and agencies (MDAs) for the purposes of improving public finance system in the country.
The risk management expert pointed out that risk management is something that is not restricted to any particular sector but had relevance in every sector of the economy, including the government.
According to him, if enacted the Act it would guide public officers on any decision as it relates to the risks and the need to properly manage such risks to ensure prudence in public finance at all levels of governance in the country.
