The Federal Government of Nigeria has set a tax revenue target of N19.4 trillion for the year 2024. This comes after the Federal Inland Revenue Service (FIRS) achieved a record collection of N12.37 trillion in tax revenue for the federation in 2023, surpassing the year’s target of N10.7 trillion.JAMB Portal
The Chairman of FIRS, Dr. Zacch Adedeji, expressed confidence in achieving the new target due to the effectiveness of the tax collection system and a favorable economic environment for businesses. The breakdown of the figures revealed that oil revenue accounted for N3.17 trillion (25.6%), while non-oil revenue contributed N9.2 trillion (74.4%) to the total.NYSC Portal
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Commenting on 2024’s target, FIRS’s chairman, Adedeji said, “What determines whatever we have comes from micro-economic indices because when the economy runs well, we are going to be taxing prosperity, not poverty.
“We will focus on the fruits and not the seeds. We need to ensure we have that viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection.JAMB Result
“We are not a revenue-generating agency, but a revenue-collection agency. With the plan of President Bola Tinubu to rejuvenate the economy, companies are going to grow and prosper,” he said.
In his goodwill message, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stressed the need for an increase in tax revenue to enable the government to discharge its responsibilities to the citizenry.informationguidenigeria
He said, “First of all, I commend the FIRS chairman and the rest of his team for coming together right from the beginning of the financial year to come to rub minds and put up a strategy for increasing tax revenue.
“Tax revenue in Nigeria is low. The collection level should be much higher as we have seen in other African countries not to talk of the developed countries. It is at 10 per cent of the Gross Domestic Product (GDP) when at the highest level, it goes around 55 per cent.
“What the chairman and his team have done is build on already-established performance. In 2023, FIRS met his financial target and even surpassed it. But they need to do more. And that is what the chairman and his team will be discussing for the two days to make sure they finalize plans to substantially increase internally generated revenue.”
Nigeria has been making moves to increase its tax revenues. During his 2024 budget presentation, President Tinubu said, “We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 per cent currently to 18 per cent within the term of this Administration. The government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.”
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