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Tag: FIRS

  • FIRS: Tax revenue as Nigeria’s new ‘crude oil’

    FIRS: Tax revenue as Nigeria’s new ‘crude oil’

    Why President Tinubu deserves commendation

    By Dare Adekanmbi

    Prior to Nigeria‘s Independence in 1960, agriculture was the mainstay of its economy, even as reflected in the economic activities of the regions there were in the country at that time. Famous stories of the First Republic chronicled how the defunct regions were reliant on revenues from the groundnut pyramids in the North, the cocoa export receipts from the defunct West and the rubber as well as palm oil proceeds from the East.

    With the discovery of crude oil in commercial quantities, beginning from Oloibiri in the present-day Bayelsa State in 1956, agriculture, over time, became supplanted by black gold in terms of contributions to national revenue pool. And not only did crude oil receipts ride the wave as far as the total collectable revenue was concerned, the Nigerian National Petroleum Corporation (NNPC), became the cornerstone entity for the three tiers of government to look up to for salvation in terms of their fiscal projections.

    However, those days when the federal, states and local government councils wait zealously for revenue figures from NNPC have not only receded into the past but appear to have gone for good. At the monthly meeting of the Federation Account Allocation Committee (FAAC), focus has shifted to the Federal Inland Revenue Service (FIRS), the goose that is laying the golden egg for the fiscal stability and wellbeing of the Federation.

    For those who may not know, the ‘cake’ shared monthly by the Federation is baked by four major entities: NNPC, FIRS, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), formerly known as Department of Petroleum Resources (DPR) and the Nigeria Custom Service (NCS).

    Of the body of ‘bakers,’ FIRS under Zacch Adedeji has emerged the cream of the crop, singlehandedly and aggregately accounting for close to 70 percent of the total revenues collected and shared by the three tiers of government at FAAC meetings in 2024.

    Out of N2.068trillion that accrued to the Federation Accounts in January 2024, tax collected by FIRS accounted for more than 50 percent with the agency’s contribution totalling N1.275trilion. The other three revenue-remitting bodies jointly raked in the balance. While oil receipts from NNPC brought N115billion, NUPRC grossed N469.8billion, just as the Nigeria Custom Service remitted N207 billion.

    The contribution of FIRS to the pool grew in February by N300billion from what it brought to the account in January. From the N2.3trillion that accumulated into the account, takings by FIRS amounted to N1.491 trillion, a collection figure that was more than 50 percent of the total revenue for the month. In fact, NNPC’s contribution to the pool was just N92billion. NUPRC and NCS contributed N487billion and N254billion, respectively.

    In March, FIRS contributed N1.061trillion out of N1.867 trillion in the pool and in April, the Federation Account got N1.187 trillion from FIRS out of the N2.192trillion revenue accrual. For May, out of the N2.324trillion shared by the three tiers of government, FIRS alone contributed N1.571trillion.

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    The last month in the first half of 2024 finished on a strong note for the Federation in terms of the size of the ‘cake’ available for sharing among the three tiers of government. Of the N3.5trillion accrual in the Federation Account for the month, FIRS accounted for N2.841trillion. Contributions from NNPC for the month was N8.3billion with NUPRC and NCS remitting N402.5billion N264 billion, respectively.

    The upward trajectory of FIRS contribution to the Federation Account continued at the beginning of the second half of the year. It accounted for N2.295trillion out of N3.508trillion remitted into the Federation Account for July, representing 65.4 percent of the total haul. For August, FIRS figure for FAAC was N1.87trillion out of the N2.7trillion in the pool. In September, October, November, and December the agency’s contributions were N1.45trillion (out of N2.4trilion), N1.74trillion (out of N2.9) and N1.56trillion (out of N2.8trillion) and N1.41trillion (out of NN2.2trillion) respectively.

    The significance of FIRS contributions displacing oil receipts and turning tax revenue into the country’s new ‘crude oil’ has been well situated by the Accountant General of the Federation, Dr (Mrs) Oluwatoyin Madein. At an event in Abuja, she declared: “Tax revenue, as of today, is the highest source of revenue accruing to the Federation. Therefore, at FAAC meetings, we eagerly await the numbers coming from FIRS because the performance of the agency keeps on increasing and this brings succour to all tiers of government.”

    Putting FIRS contribution to FAAC revenue pool in 2024 in context, we will see how it has helped the three tiers of government to plan, project and experience fiscal stability. There is nothing like fiscal discipline except you have accurate revenue prediction. If you say you want to spend N10, that means you must be assured that the N10 will come from somewhere. This commendable collection performance is in tandem with Adedeji’s vision of making taxation the pivot of national development.

    What did FIRS do differently?

    The impressive revenue collection posted by FIRS is not a product of happenstance. It is the outcome of a well-thought-out strategy and process re-engineering that formed the bedrock of a cocktail of administrative and process reforms embarked upon by the agency under Adedeji. One of his key refrains is that if FIRS is going to succeed in its critical national mandate of domestic revenue mobilisation, taxpayers must be at the centre of all policies and initiatives of the agency.

    The FIRS chairman summarised the restructuring and re-orientation that powered the huge revenue collection and turned it to a customer-centric agency thus: “We restructured our operations at FIRS in such a way that we are now effectively carrying out our duty of assessing, collecting and accounting for taxes. We used to have functional types of taxes, but we have since identified that the only customers we have are the taxpayers. We have, therefore, improved the way we relate with our customers by rearranging our operations based on our customers, using their turnover as the basis to categorise them into large, medium, and emerging tax groups.

    “We did this to develop expertise in what we do. Secondly, to provide them with a one-stop shop for their activities. If you are in a large tax group, you only need to go to one office to pay all forms of taxes, including conducting audits and other activities. You do not need to move from one office to another again.

    “We are here to serve the taxpayers. The taxpayers are not armed robbers or criminals that we will be chasing about. FIRS is also not a law enforcement organisation. We are partners in progress. The taxpayers are the trees in our vineyard. The only thing we can do is to ensure they are well watered and well pruned so they can bear good fruits for us to have a big harvest.”

    Because of the streamlining of tax processes, the removal of hurdles in the way of tax payment as well placing a high premium on transparency and accountability, a total number of 182, 724 new taxpayers, representing 25.3% increase, voluntarily enrolled on the agency’s tax administration platform called Tax Pro-Max in 2024. It is the single biggest leap in the number of firms in the tax net in recent history of the tax agency. This not only underscores the level of trust reposed in the new processes emplaced at the agency. It also lends credence to Adedeji’s sharp vision of making the agency one of the world’s most efficient and trusted revenue authorities.

    The president, Lagos Chamber of Commerce and Industry (LCCI), Mr Gabriel Idahosa, testified to the unusual transformation witnessed at FIRS. Idahosa commended the agency for conducting reforms that align with the needs of businesses, particularly singling out the increasing use of technology in tax administration as well as the shift in mental geography of tax officers from being mere tax collectors to “actively providing services that enhance business operations.”

    One key import of the unprecedented growth in tax revenue for the Federation is that the non-oil sector accounts for about 75% of the total haul. This clearly signposts the commitment of the President Bola Tinubu-led administration to truly diversify the economy from its mono-product, crude oil. According to Adedeji, all accolades for the impressive tax collection by FIRS should go to President Tinubu. Of a truth, two key policies by the President, namely the removal of fuel subsidy and unification of the exchange rate, gave fillip to the record tax revenue collection by FIRS. The negative consequences of not setting these economic fundamentals at the time President Tinubu did would have been unbearable for an economy that was already in ICU before President Tinubu assumed office.

    Despite the laudable achievements of the agency since assumption of office in September 2023, Adedeji is not resting on his oars. He believes the success recorded so far is just a beginning with his key fiscal focus being on growing Nigeria’s tax-to-GDP ratio to 18% in the next three years. This, he believes, is achievable without putting additional burden on the taxpayers but by making the pie bigger to collect more revenue for the government at all levels to be able to meet their obligations to the citizenry.

    For him, there is an irreducible minimum if the upward tax revenue trajectory must continue. “We can play with everything, but what we cannot afford to play with, if we are going to succeed, are data and merit,” he once said.

    It needs to be said that prior to Adedeji’s leadership, the agency’s contribution to FAAC had been growing. However, the coming of Adedeji has moved the quantum significantly higher through a potpourri of internal administrative and process reforms he introduced, leading to simplifying of tax payment.

    For 2025, FIRS is targeting to collect N25.2 trillion in tax revenue and this means more money for the three tiers of government to meet their needs. This is another reason why there should be no opposition to the tax reform bills currently before the National Assembly. If FIRS could post these huge records in a short time, breaking its own records and setting higher targets and goals, a tax system that is modernised and fit for purpose can only add impetus to the task of domestic revenue mobilisation given to FIRS.

    For those asking the question: where does tax revenue by FIRS go? The answer is this: every month that the federal, states and local government councils gather in Abuja for FAAC meetings and money shared accordingly, about 70% of that money comes from the tax revenue FIRS collects from taxpayers.

    For perceptive observers, President Tinubu deserves to be hailed for the huge jump in shareable FAAC allocations which continue the upward swing since his assumption of office. All the states now collect almost three times of what they used to get as FAAC allocation prior to the coming of the Tinubu administration. Every month, managers of the three tiers smile to the banks, thanks to the President’s courageous leadership.

    • Adekanmbi is the Special Adviser on Media to the executive chairman, Federal Inland Revenue Service (FIRS).

  • FIRS files suit seeking $79.51b from Binance for economic losses

    FIRS files suit seeking $79.51b from Binance for economic losses

    The Federal Government has sued Binance Holdings Limited, a global cryptocurrency exchange, seeking $79.51 billion and N231 million in compensation for alleged economic losses caused by its operations in the country.

    The Federal Inland Revenue Service (FIRS) filed the lawsuit at the Federal High Court in Abuja.

    It accused Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register with the FIRS for tax compliance and violating Nigerian financial regulations.

    The case, marked FHC/ABJ/CS/1444/2024, also demands $2.001 billion in unpaid income taxes for 2022 and 2023.

    This marks the third legal action against Binance in Nigeria.

    The FIRS and the Economic and Financial Crimes Commission (EFCC) had earlier charged the company with tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite of the Federal High Court in Abuja.

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    The lawsuit includes financial penalties such as a 10 per cent charge for non-payment of taxes for 2022 and 2023, an annual interest rate of 26.75 per cent based on the Central Bank of Nigeria (CBN) lending rate, and additional fines for Binance’s failure to register its business activities in Nigeria.

    The government claims that Binance has been operating in Nigeria for over six years without proper registration, violating several financial laws.

    In an affidavit submitted by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (NSA), Binance executives admitted that the platform had 386,256 active Nigerian users, with a trading volume of $21.6 billion in 2023 and net revenue of $35.4 million from Nigerian transactions.

    The NSA further alleged that Binance refused to provide detailed business records covering six years despite a Federal High Court order instructing the company to disclose the data to the FIRS through the EFCC.

    The FIRS is seeking a court declaration that Binance must pay corporate income tax for its Nigerian operations; an order compelling Binance and its executives to file income tax returns for 2022 and 2023, and a payment of $2.001 billion in taxes.

    The claimant demands a 10 per cent annual interest and a 26.75 per cent CBN lending rate until all taxes are fully paid.

    FIRS prayed for $79.51 billion and N231 million in compensation for the alleged economic damages caused by Binance’s activities in Nigeria.

  • FIRS: e-invoicing aligns with global practice

    FIRS: e-invoicing aligns with global practice

    The Federal Inland Revenue Service (FIRS) yesterday said the digitization of the nation’s tax process is in line with global best practices.

    It also disclosed that there are over 500,000 active corporate taxpayers recorded in Nigeria’s national database.

    Speaking at a Stakeholder Engagement for the Pilot Rollout of the E-invoice solution held in Lagos yesterday, Chief of Staff to the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji Tayo Koleosho, said motivated by the necessity for efficiency in tax collection, the agency has successfully established a national database for corporate taxpayers. The database, as he explained, will function as a centralised repository of financial information for all companies operating in the country, thereby streamlining the tax filing process and bolstering the government’s capacity to identify and prevent tax evasion.

    According to Koleosho, the technology behind e-invoicing is purely homegrown and takes into cognizance Nigeria’s peculiarities.

    “A lot of countries now have a solution that you can use to file your taxes. And in that 2.0, where it becomes more digitised, a lot of countries, I’m surprised, we are 100per cent digitised now, there are still countries that are not.

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    “So, and again, as a country, I think we’ve been good at being hard on ourselves. It’s only when you go out that you see a lot of things that we’re doing, and you wonder what happened. So we’re actually ahead of so many countries in a lot of things that we’re doing.

    “But we always think that we are struggling or we are catching up. But in a lot of ways, we’re actually leading in a lot of initiatives that we’re doing. So from tax action 2.0, where it’s fully automated, you can go into TaxPro or the tax administration solutions, and you can file your taxes.

    “And every day you find out that new modules, new initiatives, new simplified ways of doing things are being added into that. But the ultimate goal is to go to tax action 3.0. And at 3.0, which is where the worldwide people are moving to, you’ll find out that in that 3.0, it becomes part of your natural business operation, clearly for your large tax payers, SMEs, where even from your ARP system, whether your resource planning system, your POS system, everything becomes integrated and seamless. And at the end of the month, as you’re filing your taxes, all these things have been built already.

    “A lot of interchange between the buyer, the merchant, and the tax administration, and it’s all integrated together. So that the minimal effort just becomes part of doing your business. All the attributions, all the data sets, everything is integrated together.

    “That is the future, and the future is not far from us at all. So this is now today, at the beginning of those consultations, we’re going to show what we have been cooking, and we now need people to look at it, people to use it as a pilot, to now tell us what is missing, what is left, and all those things are what we are coming here to do.

     “And one important thing as we go on today to remember is, this solution is locally being developed. It is being developed by Nigerians for Nigerians, because we are learning from our own system, our own processes.

    “So this is completely localised, and it’s going to be a solution where every of the stakeholders, either from large tax, from tax consultants, from policy makers, everybody will be engaged. So that when it’s done, we have a product that caters to, that has listened to all the ideas and all the suggestions of all our stakeholders. So the journey ultimately is for us to go to  3.0, and like I said, we are very close.

    So where are we now? I think I’ve kind of talked about this again. This, I think, is part of the presentation that we can give to anybody that is interested to see. But basically, today from 1.0 to 2.0, everybody in these rooms, they are interested, and I know you are, for you to be here, you are part of the TASA ecosystem. So all this will now be an integrated system that will then work for both sides, and make your tax filing and tax application be much more seamless.”

    Koleosho, who also doubles as the Coordinating Director of Compliance Support Group, praised the ingenuity of the new process, stressing that it is bound to smoothen the process of tax administration and ultimately puts the country on the global world map as one that is setting the pace for others as tax innovation and compliance is concerned.

    Speaking earlier, Dr. Olabode Olatunji, who represented the Coordinating Director, Large Taxpayer Groups, Mrs Amina Ado, said: “The e-invoicing system is not just a technological innovation, but a strategic enabler that aligns with international best practices. Ensuring seamless tax compliance, reducing revenue decades, and enhancing ease of doing business in Nigeria. In my response to the amazing implementation of the final phase of this solution, we selected large taxpayers.

    “The insights gained from this phase will guide the broader implementation. Ensuring that the solution is responsive to the needs of taxpayers across various sectors. Today’s agenda is designed to provide clarity on the objectives and benefits of the e-invoicing initiative.

    “Through detailed presentations, discussions, and expert insights, we will explore how the solution integrates into our business operations and the tax ecosystem. We understand that transitioning to a new system comes with challenges.

    “Everybody is committed to providing the necessary support and guidance to ensure a seamless adoption process for all stakeholders. As you move forward, your cooperation, feedback, and active participation will be instrumental in shaping the sources of this initiative,” she said.

  • Who is Zacch Adedeji, the FIRS boss?

    Who is Zacch Adedeji, the FIRS boss?

    By Arabinrin Aderonke 

    I have worked in media, development, and journalism fields for almost two decades, and I can attest that genuine leadership is uncommon, particularly in a country like ours, Nigeria. 

    Titles and personal accomplishments are not important; what matters is the capacity to put in effort, motivate, and uplift others. A perfect example of this is Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS). 

    In terms of leadership, this man is a force to be reckoned with; his influence is felt not just by his words but also by his actions. He has distinguished himself in Nigeria’s tax sector in many ways.

    The famous Dr. Martin Luther King once said, “The time is always right to do what is right.”  

    This quote captures the Tax Boss’s approach. He has taken responsibility for the whole tax system, not just his role. 

    Dr. Zacch has been spearheading some of the most innovative tax reforms in Nigeria’s history. These reforms were not just about improving tax collection; they were about ensuring a fair and transparent process for every Nigerian.

    Dr. Zacch is not only concerned with his success but also invests in the growth of his team. Many people express gratitude for his role as a mentor. The workforce he leads doesn’t just work for him; they grow because of him.

    The Tax Boss’s work ethic is something to emulate. If there’s one thing you can say about him, it’s that he is practical. He understands the weight of responsibility on his shoulders and approaches it with discipline. 

    FIRS has met and exceeded expectations, improving revenue generation in ways that many thought impossible. He has restored Nigeria’s faith in tax administration.

    He listens, engages, and makes sure everyone understands their position at FIRS. This has enabled him to easily implement necessary changes in the agency. 

    There is no confusion or chaos. Everything runs like clockwork because the Tax Boss is constantly thinking ahead, anticipating needs, and addressing problems before they become issues.

    Whether engaging with world-class economists or everyday Nigerians, he speaks with a clarity that makes complex issues understandable and solutions attainable. 

    It’s no surprise that he is widely respected and admired. Even Aliko Dangote, Africa’s richest man, once described him as a “smart guy.”

    The Tax Boss is more than simply a leader; he is a mentor, a visionary, and someone who is transforming the way leadership is seen. He leads with heart, dedication, and, most importantly, a concern for others, which is becoming all too rare these days.

    If you see a man who is ready to work, you will know. Dr Zacch’s actions speak louder than words. Congratulations to us all for having a leader who is all about making real change happen!

    Arabinrin Aderonke Atoyebi is the Technical Assistant, Broadcast Media, to the Executive Chairman, Federal Inland Revenue Service

  • FIRS begins withholding tax system

    FIRS begins withholding tax system

    The Federal Inland Revenue Service (FIRS) has announced the commencement of the implementation of the withholding tax system. This is aimed at streamlining tax collection, enhancing compliance, and boosting revenue for critical sectors.

    In a statement issued yesterday, Collins Omokaro, Special Adviser to the Executive Chairman of the FIRS on Communication and Advocacy, said the new system would ensure efficient and transparent tax collection while fostering accountability among businesses and employers.

    The regulation mandates the deduction of taxes directly from payments such as salaries, rent, professional fees, and dividends, placing the responsibility on businesses, employers, and other payers to withhold taxes at the point of payment. According to the FIRS, this approach is designed to guarantee a steady inflow of revenue and minimize tax evasion.

    A key feature of the regulation is the integration of Tax Identification Numbers (TINs) with transactions, alongside the establishment of penalties for non-compliance. The agency also noted that adjustments to tax rates for both residents and non-residents is intended to support local businesses while ensuring fairness for foreign entities operating in Nigeria.

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    The FIRS projected that the initiative would create a more equitable tax system, ensuring that individuals and businesses contribute their fair share to national development. The anticipated increase in revenue is expected to fund essential public services, stimulate economic growth, and improve the quality of life for Nigerians.

    Despite the potential benefits, the FIRS acknowledged challenges in implementing the new regulation. Businesses may need to invest in software and training to accurately deduct and remit taxes, while smaller enterprises and vendors might struggle with compliance due to a lack of awareness. Additionally, industries such as gaming and telecommunications will have to adapt to sector-specific tax obligations.

    Omokaro described the regulation as a “game-changer” for Nigeria’s tax landscape, stressing that its success would depend on effective implementation and cooperation among all stakeholders. He urged government agencies to intensify awareness campaigns to help businesses, particularly small and medium enterprises, navigate the transition smoothly.

  • Fed Govt sets N25.2tr target for FIRS

    Fed Govt sets N25.2tr target for FIRS

    The Federal Inland Revenue Service (FIRS) has a mandate to generate N25.2 trillion in tax revenue this fiscal year, its Executive Chairman, Dr. Zacch Adedeji, confirmed yesterday.

    This ambitious target followed the agency’s historic achievement last year. It raked N21.6 trillion last year, surpassing its N19.4 trillion goal.

    Adedeji described the 2024 performance as a landmark in Nigeria’s tax administration history.

    He said: “The year 2024 was pivotal in laying a solid foundation for transforming the FIRS into a globally recognised, efficient, and trusted revenue authority. It marked a period of strategic growth, positioning the Service as a cornerstone of Nigeria’s economic progress.”

    The FIRS boss stressed the need for sustained momentum, strategic reforms and institutional consolidation.

    He noted that the Service is committed to achieving long-term resilience and operational excellence, with a focus on three key pillars: capacity building and training, infrastructure and facility enhancement, and technological advancement.

    Adedeji said: “This year, our mission is both ambitious and transformative: to build a service of excellence defined by the expertise of our people, the modernisation of our facilities, and the innovative use of technology to enhance our processes.

    “This mission is not just about sustaining our success but about consistently elevating our impact and solidifying our position as a model revenue authority on the global stage.”

    Providing an insight into the tax revenue performance over the years, the Coordinating Director of the Large Taxpayers Group, Mrs. Amina Ado, attributed the sustained growth in tax collections to a combination of administrative reforms, policy adjustments, and macroeconomic factors.

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    She noted several major administrative reforms, including the automation of tax processes, the introduction of the TaxProMax platform, the use of third-party data for intelligence gathering, expanded application of Withholding Tax (WHT), improved debt collection strategies, and extensive organizational restructuring.

    According to her, policy reforms also played a significant role, with measures such as an increase in the Value Added Tax (VAT) rate, adjustments to Education Tax rates, and improvements in tax laws through the enactment of Finance Acts.

    She added that additionally, macroeconomic factors -such as fluctuations in the exchange rate and inflation -contributed to the revenue surge.

    Mrs. Ado noted that significant shifts in tax revenue growth were recorded in 2022 and 2024, largely driven by a combination of administrative and policy reforms alongside changing economic conditions.

    The performance across various tax categories in 2024 showed remarkable growth: under Company Income Tax (CIT), the expiration of tax exemptions on Treasury Bills and Corporate Bonds, the removal of the 10 percent investment allowance, and improved remittances from government entities all contributed to higher CIT collections.

    Education Tax (EDT), the implementation of a three percent EDT rate and exchange rate fluctuations helped increase revenue.

    The VAT, through increased application of Withholding Tax (WHT) on both local and international transactions, coupled with higher consumer spending, led to improved VAT collections.

    In the case of Stamp Duties (SD), debt collection efforts intensified and government receipts increased, leading to substantial revenue growth.

    The recognition of 2023 tax liabilities last year, higher compliance levels and exchange rate influences contributed to increased collections under the NASENI/PTF levies.

     When comparing, all tax types in the previous two years recorded significant improvements.

    Oil-related tax revenue grew by 35 per cent, while non-oil tax collections surged by 97 percent. Overall, total tax revenue increased by an impressive 76 per cent.

    Under the Stamp Duties category, the volume of transactions grew by 16 percent, while revenue collections soared by 149 percent.

    Similarly, the integration of tax offices and the conclusion of audit cases resulted in a 62 per cent increase in assessments and an 83 per cent rise in tax collections. Notably, the FIRS’ debt recovery efforts in 2024 yielded a 119 per cent improvement compared to the previous year.

    With an N25.2 trillion revenue target for this year, the FIRS is setting its sights on even greater efficiency and innovation in tax collection.

    The Service plans to consolidate on past achievements by reinforcing its workforce through enhanced capacity-building programmes, upgrading its technological infrastructure, and strengthening its institutional framework to ensure sustained compliance and efficiency in tax administration.

    Dr. Adedeji guaranteed the commitment of the FIRS to meeting and surpassing expectations, ensuring that tax revenue remains a critical driver of Nigeria’s economic stability and growth.

    “As we step confidently into 2025, we must carry forward the momentum of these achievements with renewed energy, a clear vision, and a meticulously designed roadmap,” he stated.

  • FG sets N25.2trn target for FIRS in 2025

    FG sets N25.2trn target for FIRS in 2025

    The Federal Government has mandated the Federal Inland Revenue Service (FIRS) to generate N25.2 trillion in tax revenue for the 2025 fiscal year. 

    This ambitious target follows the agency’s historic achievement in 2024 where it collected N21.6 trillion, surpassing its N19.4 trillion goal.

    Executive Chairman of the FIRS, Dr. Zacch Adedeji, described the 2024 performance as a landmark moment in Nigeria’s tax administration history. 

    “The year 2024 was pivotal in laying a solid foundation for transforming the Federal Inland Revenue Service into a globally recognized, efficient, and trusted revenue authority. It marked a period of strategic growth, positioning the Service as a cornerstone of Nigeria’s economic progress,” he stated.

    Adedeji stressed the need for sustained momentum, strategic reforms, and institutional consolidation. 

    He noted that the Service is committed to achieving long-term resilience and operational excellence with a focus on three key pillars: capacity building and training, infrastructure and facility enhancement, and technological advancement.

    According to him  “This year, our mission is both ambitious and transformative: to build a service of excellence defined by the expertise of our people, the modernization of our facilities, and the innovative use of technology to enhance our processes. This mission is not just about sustaining our success but about consistently elevating our impact and solidifying our position as a model revenue authority on the global stage.”

    Providing an insight into the tax revenue performance over the years, the Coordinating Director of the Large Taxpayers Group, Amina Ado, attributed the sustained growth in tax collections to a combination of administrative reforms, policy adjustments, and macroeconomic factors.

    She noted several major administrative reforms, including the automation of tax processes, the introduction of the TaxProMax platform, the use of third-party data for intelligence gathering, expanded application of Withholding Tax (WHT), improved debt collection strategies, and extensive organizational restructuring.

    Policy reforms also played a significant role, with measures such as an increase in the Value Added Tax (VAT) rate, adjustments to Education Tax rates, and improvements in tax laws through the enactment of Finance Acts. Additionally, macroeconomic factors—such as fluctuations in the exchange rate and inflation—contributed to the revenue surge.

    Ado noted that significant shifts in tax revenue growth were recorded in 2022 and 2024, largely driven by a combination of administrative and policy reforms alongside changing economic conditions.

    The performance across various tax categories in 2024 revealed remarkable growth: under Company Income Tax (CIT), the expiration of tax exemptions on Treasury Bills and Corporate Bonds, the removal of the 10 percent investment allowance, and improved remittances from government entities all contributed to higher CIT collections.

    Education Tax (EDT), the implementation of a three percent EDT rate and exchange rate fluctuations helped increase revenue. Value Added Tax (VAT) through increased application of Withholding Tax (WHT) on both local and international transactions, coupled with higher consumer spending, led to improved VAT collections.

    In the case of Stamp Duties (SD), debt collection efforts intensified, and government receipts increased, leading to substantial revenue growth. The recognition of 2023 tax liabilities in 2024, higher compliance levels, and exchange rate influences contributed to increased collections under the NASENI/PTF Levies.

    Comparing 2023 and 2024, all tax types recorded significant improvements. Oil-related tax revenue grew by 35 percent, while non-oil tax collections surged by 97 percent. Overall, total tax revenue increased by an impressive 76 percent.

    Under the Stamp Duties category, the volume of transactions grew by 16 percent, while revenue collections soared by 149 percent. Similarly, the integration of tax offices and the conclusion of audit cases resulted in a 62 percent increase in assessments and an 83 percent rise in tax collections. Notably, the FIRS’ debt recovery efforts in 2024 yielded a 119 percent improvement compared to the previous year.

    With an N25.2 trillion revenue target for 2025, the FIRS is setting its sights on even greater efficiency and innovation in tax collection. The Service intends to consolidate on past achievements by reinforcing its workforce through enhanced capacity-building programmes, upgrading its technological infrastructure, and strengthening its institutional framework to ensure sustained compliance and efficiency in tax administration.

    Adedeji guaranteed the commitment of the FIRS to meeting and surpassing expectations, ensuring that tax revenue remains a critical driver of Nigeria’s economic stability and growth. “As we step confidently into 2025, we must carry forward the momentum of these achievements with renewed energy, a clear vision, and a meticulously designed roadmap,” he stated.

  • The untiring FIRS boss

    The untiring FIRS boss

    By Arabinrin Aderonke

    When I ventured into the office to see the tax boss, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, I was met with an unexpected sight. 

    He was wearing a face cap, a T-shirt, and jeans. It was the first time I had seen him dressed so casually during official hours, and I couldn’t help but smile and think, “This is so unlike him.” But before I could ask, I learned he was heading out for an inspection of the ongoing construction of the FIRS headquarters. This is the Dr. Zacch, we know, very demure, very mindful, and always prepared to take action.

    The Tax Boss is not your regular chairman. Since his first day in office, he has been on the move, handling one responsibility after another with so much energy. It’s no wonder he was casually dressed; he was ready to dive into the work at hand. 

    The construction of the FIRS Headquarters is a long-awaited project. It has been on the agenda of the agency for over 20 years but has experienced delays and setbacks. Dr. Zacch is now ready to ensure its completion during his tenure. His hands-on attitude is clear in everything he does, and the inspection was no different.

    When Dr. Zacch arrived at the site. He didn’t just walk about; he inspected every detail with the seriousness of a man on a mission. He was interested in the structural design, material quality, and even project timeframes. It was clear that he wasn’t just there for the appearance; he wanted to make sure everything was in order.

    The Tax Boss spoke to the engineers and workers, saying, “Let’s hurry up and get this done.”Together, we will scale through.” His energy was contagious, and you could see the workers feeling motivated by his presence.

    And, yes, we are just a few weeks into 2025, but Dr. Zacch is showing workings. FIRS’s momentum is at an all-time high, and the agency will move back-to-back again this year. Every decision, visit, and action is aimed at transforming the FIRS into Nigeria’s tax administration powerhouse.

    Dr. Zacch sets an example for public servants everywhere, demonstrating that leadership is about action, not just words. This visit was eye-opening for me, as it demonstrated what true leadership entails: rolling up your sleeves, putting in the effort where it matters most, and staying involved at all times.

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    FIRS is an unstoppable agency in Nigeria. The new headquarters represents a vision for the future and a commitment to transforming the agency. It will stand as a testament to FIRS’ efficiency, transparency, and progress.

    The next time you hear someone mention Dr. Zacch Adedeji (Tax Boss), think beyond his everyday suits or sometimes casual outfits (t-shirt and jeans) while inspecting projects. Think of a leader who is proactive in his quest for excellence, committed to changing the tax system, and who prioritizes taxpayers in Nigeria. 

    He is a man building the foundation for a stronger and more efficient system that will benefit all Nigerians.

    _Arabinrin Aderonke is the technical assistant on broadcast media to the Executive Chairman of the Federal Inland Revenue Service._

  • FIRS lauds SIFAX for tax compliance

    FIRS lauds SIFAX for tax compliance

    The Federal Inland Revenue Service (FIRS) has recognised SIFAX Group for its contribution to the nation’s tax revenue growth and compliance efforts last year.

    During an appreciation visit to SIFAX Group’s headquarters in Lagos, Head of the Taxpayers Service Unit at FIRS’ Lagos Mainland West Medium Taxpayers Office, Kazeem Olanrewaju,  said SIFAX Group is now ranked among the Top 20 companies under FIRS’ jurisdiction, out of 300 assessed organisations.

    “This visit reflects FIRS’ commitment to a customer-focused approach in acknowledging top-performing companies that demonstrate exceptional diligence in tax filing compliance,” Olanrewaju said.

    During the visit, FIRS presented a formal commendation letter to SIFAX Group, co-signed by Olanrewaju and Tax Controller, E.F. George. The letter highlighted the Group’s significant role in supporting the agency’s revenue collection success in 2024.

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    The letter read in part: “As the year comes to a close, it is with great pride and gratitude that we write to commend your company for being part of the Federal Inland Revenue Service (FIRS) revenue collection success story for the year 2024. This milestone could not have been possible without your company’s unwavering dedication and exceptional support in the area of tax filing compliance.”

    Olanrewaju further stressed that SIFAX Group’s commitment was instrumental in helping FIRS achieve its revenue target for the year.

    “Your consistency and diligence in tax compliance have made a substantial impact on our ability to meet our fiscal goals. We encourage you to maintain this standard as we prepare for the upcoming fiscal year,” he added.

    In response, Director of Strategy and Operations at SIFAX Group, Oliver Omajuwa, expressed gratitude for the recognition and reaffirmed the company’s dedication to supporting Nigeria’s socio-economic development.

    “As a socially responsible organisation, we firmly believe in the principle of corporate social responsibility (CSR), and prompt regulatory compliance is a key aspect of our commitment. We remain dedicated to supporting the government’s vision of widening the tax net and fostering economic growth,” Omajuwa stated.

  • NASS threaten to withdraw govt funding for NPA, NIMASA, FIRS, others

    NASS threaten to withdraw govt funding for NPA, NIMASA, FIRS, others

    …give them 48hour ultimatum to appear before panel

    The National Assembly Joint Committee on Finance has given revenue generating agencies of government 48 hours ultimatum to appear before the parliament or risk being withdrawn from government funding for 2025 operations. 

    The joint committee decried the failure of the agencies to honour invitation and appear for 2025 budget defence and their revenue generating profile. 

    The agencies include Nigerian Ports Authority (NPA) the Nigerian Maritime Administration and Safety Agency (NIMASA) Federal Inland Revenue Service (FIRS) Nigerian Postal Service (NPS) and the Nigerian Railway Corporation (NRC)

    Others include Nigerian Civil Aviation Authority (NCAA) Standard Organisation of Nigeria (SON) Tertiary Education Trust Fund, Oil and Gas Free Zones Authority and the National Agency for Food and Drug Administration and Control (NAFDAC).

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    The Nigerian Copyright Commission, National Insurance Commission, National Pensions Commission, National Space and Research Development Agency and the Nigerian Metrological Agency are also included. 

    Also included are Nigerian Agricultural Insurance Corporations, Airspace Management Authority, Nigerian Content Development and Monitoring Board, Nigerian Liquified Natural Gas Limited, Transmission Company of Nigeria, Bank of Industry (BIO) Nigerian College of Aviataion Technology, Zaira. 

    Speaking duty thr second day of the revenue profiling exercise,Chairman of the Senate Committee of Finance, Sen. Sani Musa (APC-Niger) said President Bola Ahmed Tinubu while presenting the 2025 budget to the National Assembly, mandated all ministers and heads of agencies to appear to defend their respective budgets before the Assembly with every sense of responsibility.

    According to Senatorusa, members of the National Assembly had to cut short their Christmas holidays to attend to the national assignment.

    “But to our dismay a lot of agencies have refused to honor our invitations to appear before us, for us to scrutinise their performances in 2024 and look at their 2025 projection, if it is justifiable.

    “The all these agencies have refused to honour the joint committee’s invitation. So by virtue of the constitutional powers that have been given to the joint committees on finance of both the Senate and the House of Representatives, we are given the chief executives of these agencies 48 hours within which to appear before this joint committee.

    “Failure to do that the committee will not hesitate to recommend to the Appropriation Committee to withhold any appropriation to these agencies.

    “If these agencies are self funded, we will also request both the Minister of Finance and the Accountant General of the Federation to withhold their funding,” he said. 

    Also speaking, Chairman, House Committee on Finance, Rep. James Faleke (APC-Lagos state) said that the essence of the budget defence exercise was to boost revenue generation and cut down on borrowing. 

    “If these agencies refuse to appear before us, I the needful will be done by the National Assembly,” he said.