The Federal Inland Revenue Service (FIRS) reported on Monday that it collected over N10 trillion in tax revenue in fiscal year 2022, represented the highest tax collection ever recorded in its history.
The Service made this known in its “FIRS 2022 Performance Update,” report signed by its Executive Chairman, Mr. Muhammad Nami, and released to the public.
He had earlier briefed President Muhammadu Buhari on the performance of the Service in the year under review.
The report stated: “The FIRS, in the year 2022 collected a total of N10.1 trillion in both oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues as against a target of N10.44 trillion.
“Companies Income Tax contributed N2.83 trillion; Value Added Tax N2.51 trillion; Electronic Money Transfer Levy N125.67 billion and Earmarked Taxes N353.69 billion.
“Non-oil taxes contributed 59% of the total collection in the year, while oil tax collection stood at 41% of total collection”, it added
The Performance Update Report reflected that the total revenue accruals included the sum of N146.27 billion, which is the total value of certificates issued by the Service to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.
The FIRS also clarified that The report also stated that the N10.1 trillion is exclusive of tax waived on account of various tax incentives granted under the respective laws, which amounted to N1,805,040,163,008.
Providing perspective to the improved tax collection, the FIRS in the Performance Report Update recalled that the Muhammad Nami-led management upon assumption of office seta four-point agenda for it, including administrative and operational restructuring; making the service customer-focused; creating a data-centric institution; and automation of administrative and operational processes.
It further noted that over the period of 2020 to 2022, the management introduced reforms bordering around these four-point focus which were producing results.
The report further clarified: “The reforms introduced at different times from 2020 are gradually yielding fruits. By the close of 2022, the Service had fully restructured the administration of the Service for maximum efficiency and achieved internal cohesion such that all functional units are working in unison towards the achievement of set goals.
“As a result of conducive environment created for staff, officers of the Service are pulling their weight on the global stage with international recognitions and awards.
“The Service had also automated most of the administrative and operational processes. A major leap was the full deployment of the TaxPro Max for end-to-end administration of taxes in June 2021. The module for the automated TCC went live 1st January 2023 while taxpayers had already downloaded over 1,000 TCCs this year without having to visit FIRS office”, it added.
The report indicated that the Service had operationalised its data mining and analysis system thereby allowing for data-backed taxpayer profiling, listing other reforms of the Service as including the detoxification of the tax environment by ridding it of mutual mistrust, negative tax morale, and tax evasion, through effective taxpayer education, open engagement with stakeholders and improved services.
The report’s findings showed that that it was based on these reforms, framed around the four-focus points, that the Service was able to achieve this collection.
Commenting on the N10.1 trillion record tax collection, FIRS’ Executive Chairman, Mr. Muhammad Nami, Executive Chairman of the FIRS, attributed the feat to “dogged implementation of strategic reforms over the past two years; a renewed commitment by officers of the Service, accompanied with a boosted morale; as well as the innovative deployment of technology for automation of both tax administration and operational processes.
“This collection was possible through collaboration with our stakeholders, from our colleagues at the Executive branch of government, to the members of the judiciary, to our brothers and sisters at the National Assembly, as well as the tax advisory committee, professional bodies, unions, and most crucially our taxpayers.”
On the outlook for 2023 fiscal year, Nami maintained that the Service would build on the current reforms, achieve full automation and continue to establish a resilient Service that would continue to provide sustainable tax revenue to fund the government.
