The Federal Inland Revenue Service (FIRS) collected N4,952,243,711,728.37 in total tax revenue in the year 2020.
This represents approximately 98% of the national tax target of N5.076 trillion set for the FIRS by the Federal Government.
Executive Chairman of FIRS, Mr Muhammad Nami made these disclosures at a press conference in Abuja.
Nami explained that this near 100% collection feat was very impressive when placed against the backdrop of the devastating effects of COVID-19 on the Nigerian economy and the all-time low price of crude oil in the international market.
He also said the feat was achieved despite the business disruptions and looting during the #EndSars protests; generous tax waivers granted by the FIRS to ease the impact of the COVID-19 shutdown; additional tax exemptions granted to small companies in the 2019 Finance Act; and insecurity in some parts of the country.
While analysing the significance of the 2020 performance, the Chairman noted that the FIRS recorded this feat at a time when the price of oil hit an all-time low, adding oil which used to contribute over 50% in tax returns through the Petroleum Profits Tax in previous years, accounted for only 30.6% to the tax revenue generated in 2020.
He also added that the non-oil tax collection was 109% in 2020, which is 9% higher than the previous year.
Nami also attributed the FIRS revenue generation success in 2020 to a number of reforms initiated by the Board and Management of the Service under his leadership.
The reforms according to him, included capacity building for members of the staff; improved staff members’ welfare package; promotion and proper placement of staff members; deployment of appropriate technology in tax operations; segmentation of taxpayers to ease tax compliance; and continuous collaboration with relevant stakeholders, among others.
A statement by the Director of Communications and Liaison Dept., Mr Abdullahi Ismaila Ahmad, on Tuesday, said Mr Nami commended “the conscientious taxpayers in the country and dedicated members of staff of the FIRS nationwide for their support and devotion to work which made this performance possible despite the numerous obstacles encountered by the Service in 2020.”
According to him, “The FIRS is optimistic this current fiscal year 2021 will be better than 2020. We shall perform exceedingly well given that our Service reforms are expected to yield greater dividends, especially as different parts of tax administration is being automated.
“We are also optimistic that exploration activities will improve in the oil sector and increase the prospect of higher tax revenue from the sector.
“Similarly, the ongoing reforms by the Service together with increased stakeholder collaborations will brighten the prospect of improved voluntary compliance and consequently higher tax revenue generation for the country this year and beyond.”
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