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Tag: FIRS

  • FIRS generates N8tr revenue in eight months, targets N13tr by year’s end

    FIRS generates N8tr revenue in eight months, targets N13tr by year’s end

    The Federal Inland Revenue Service (FIRS) has collected over N8 trillion in tax revenue between January and August 2023.

    At the rate it is going, the Service is looking to generate at least N13 trillion by the end of the 2023 tax year marking a tax collection record for the Service.  

    President Bola Tinubu has set a three-year target of an 18 percent tax on Gross Domestic Product (GDP) for the nation’s tax authorities.

    This disclosure was made by Muhammad Nami in his farewell and appreciation speech in Abuja.

    According to Nami, “Even as I take my bow, we have so far collected more than N8 trillion in eight months and would have set a new record of a minimum of N13 trillion at the end of this tax year.”

    Last year, the FIRS harvested a tax revenue of N10.1 trillion, an amount never before generated by the tax authorities in Nigeria

    Nami noted: “During the inauguration of the erstwhile Board Members of the Service, I promised to raise the country’s Tax-To-GDP ratio from six percent to 10 percent in four years. We already have achieved a Tax-to-GDP ratio of 10.86 percent within two years (i.e., as of 31st December 2021.)

    The former FIRS boss said he is leaving the Service “a fulfilled man knowing that I have served diligently. I am equally leaving a Service that is built on world-class best practices. Indeed, it couldn’t have been more fulfilling.”

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    Nami thanked the entire staff of the FIRS, and Nigerian taxpayers for believing in him, “and for the support and cooperation extended to me throughout my tenure”.

    “I want to put on record that the support and cooperation I received enabled my team to meet our target, and set new records for tax collection in Nigeria,” he said.

    He pleaded with the staff, taxpayers, and Nigerians to extend the same measure of cooperation to the incoming executive chairman, Zacch Adedeji, “to enable him to succeed. Tax collection is a sensitive matter that requires all hands on deck to achieve”.

    Nami expressed appreciation to former President Mohammadu Buhari and current President Bola Ahmed Tinubu “for the opportunity given to me to serve the country and humanity as the Executive Chairman of the Federal Inland Revenue Service (FIRS) for almost four years”.

  • Adedeji replaces Nami as FIRS chair

    Adedeji replaces Nami as FIRS chair

    President Bola Ahmed Tinubu’s Special Adviser on Revenue, Zacch Adedeji, was yesterday named as the acting Executive Chairman of the Federal Inland Revenue Service (FIRS).

    His appointment was announced by Presidential spokesman Ajuri Ngelale.

    Adedeji replaces Muhammad Nami, who has been sent on a three-month terminal leave.

    The statement said that Nami has been directed to proceed on three months pre-retirement leave as stipulated by the Public Service Rule (PSR) 120243, with immediate effect, leading to his eventual retirement from service on December 8.

    Read Also: UPDATED: Tinubu appoints Zacch Adedeji as acting chairman of FIRS

    The statement reads: “Hon. Zacch Adedeji is hereby appointed in acting capacity for a 90-day period before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four (4) years in the first instance.

    “Hon. Zacch Adedeji is a first-class graduate in accounting from the Obafemi Awolowo University. He most recently served the nation as the Special Adviser to the President on Revenue, following meritorious service terms as the Oyo State Commissioner of Finance and as the Executive Secretary / CEO of the National Sugar Development Council (NSDC).

    “By these directives of the President, the new appointment takes immediate effect.” 

  • FIRS rakes in N309b from stamp duty

    FIRS rakes in N309b from stamp duty

    The Federal Government has realised a total of N309.449 billion as stamp duty collection.

    The amount covered between January 2016 and last month.

      So far, the revenue-collecting agency has exceeded its stamp duty target by close to N3 billion.

    According to documents available to The Nation, in 2016 the Federal Government realised N5.63 billion; in 2017, N10.94 billion and in 2018, N17.36 billion.

    In 2019 the FIRS collected N18.19 billion as stamp duty proceeds; in 2020, N120.16 billion; 2021 N44.46 billion and 2022, N45.57 billion.

    The document indicated that included in the 2020 collections is the N50 stamp duty on electronic transactions warehoused at CBN from 2016 – 2020, totalling N59.35 billion.

    Also included in the 2020 collection was N37.67 billion being stamp duty on electronic transactions for that year following its introduction in the Finance Act 2020.

    A source connected to the stamp duty revenue collection exercise disclosed that stamp duty budget for 2023 was N44.47 billion but as at August 2023, FIRS has collected N47.15 billion.

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    The source also disclosed that the N262.30 billion realised from January 2016 to last December has been shared among the three tiers of government.

    “What is left for sharing from stamp duty collection is what will be harvested in 2023,” he added.

    The Stamp Duty Act states that the “collections shall be disbursed in the following manner among the named entities and persons: The Federal Government of Nigeria – 14 per cent continuously; the Nigeria Governors’ Forum – 73 per cent continuously; FIRS – four per cent continuously, the coordinating Consultants – five per cent (one off) the Federal Government Legal Team – two per cent (One off); School of Banking Honours and Others – two per cent (One off)”.

    Chargeable Transactions are: Power of Attorney (PoA), Deed of Assignment, Certificates of Occupancy (C of O), Sales Agreement, Proxy forms, Appointment of Receiver, Legal Mortgage or Debentures, Tenancy or Lease Agreements, Memorandum of Understanding (MoU), Insurance Policies, Joint Venture Agreements (JVA), Contract Agreements, Guarantor’s form, Vending Agreement, Ordinary Agreements Receipts, Promissory Notes, Charter-Party and Contract Notes

    Stamp duties in Nigeria is a tax charged on physical and electronic instruments.

    The Stamp Duties Act governs the administration of stamp duties, and it has undergone several amendments over the years to accommodate changes in business transactions such as e-commerce and cross-border transactions.

    The most recent amendment was the Finance Act of 2019, which clarified responsibilities for the administration of stamp duties, with the Federal Inland Revenue Service (FIRS) being the sole competent tax authority to assess, collect and account for stamp duty in Nigeria.

    Chargeable transactions for stamp duties include ad-valorem instruments and fixed duty instruments.

    Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, stated that the collection performance of Stamp Duties is only a small fraction of its potential.

    However, by amending and effectively implementing the Stamp Duty Act, streamlining administrative processes, and conducting audits and recovery exercises, Nami assured that “there will be a significant increase in its efficiency”.

    One of the reasons for the low collection performance in the past is the reliance on postage stamps to denote Stamp Duties.

    Nami argued that “the introduction of the FIRS Stamp Duties Adhesive Stamp will, among other things: plug the revenue sink-hole, enable proper accountability and transparency, simplify administration of Stamp Duties, and reduce disputes”.

  • Tax reforms  boosted  N10.01tr revenue collection, says FIRS 

    Tax reforms  boosted  N10.01tr revenue collection, says FIRS 

     The Federal Inland Revenue Service (FIRS) has said the N10.01 trillion revenue achieved in its 2022 full-year performance was made possible by the implementation of tax reforms and technology.

    FIRS Executive Chairman, Muhammad Nami, made the disclosure in  Guage, the agency’s quarterly tax publication. The publication was reviewed at the weekend.  

    He said that the government had set an ambitious revenue target of N10.4 trillion for the FIRS, the highest so far for the service. 

    Nami said:  “This collection was also made possible through collaboration with our stakeholders, with our colleagues at the executive branch of government, and our brothers and sisters at the National Assembly, as well as the Tax Advisory Committee, professional bodies, unions, and, most crucially, our taxpayers.” 

    Read Also: FIRS steps up plan to prevent tax evasion by firms

    The FIRS chief revealed that despite the challenging operating environment,  FIRS management took it upon itself to drive tax collection to aid the entire federation in meeting its national development obligations.  

    “Several strategies were put in place to boost revenue collection which led to the Service achieving an unprecedented revenue collection of N10.01 trillion in 2022. This represents an increase of over 56 per cent when compared to the preceding year’s collection of N6.4 trillion,” Nami said.

     He added that   FIRS 2022 Tax Collection Performance showed the dogged implementation of strategic reforms initiated over the past three years; a renewed commitment by officers of the service and innovative deployment of technology for automation of both tax administration and operational processes boosted revenue collection. 

     ”Our goal is to identify more areas where we can improve in the delivery and efficiency of our collection and plug loopholes while deploying innovative reforms in data and artificial intelligence,” Nami added.

     The FIRS chief also said that legislative amendments via the Finance Act 2021 and the simplification of tax laws; enforcement of service-wide adoption and implementation of TaxProMax; increased collaboration with stakeholders and use of third-party data enhanced linkages with government agencies. 

     Also on the list of deployed strategies are increased use of technology through data mining and intelligence gathering   and blockage of leakages; nationwide tax enforcement on recalcitrant taxpayers; continuous nationwide tax enlightenment campaign in different Nigerian languages and aggressive drive and compliance measures.  

     Nami said that in 2022,  the tax body collected   N4.09 trillion in revenue from Petroleum Profit Tax (PPT). The amount represents the highest-ever PPT collection recorded so far.

    “Non-oil taxes, on the other hand, showed continuous improvement year-on-year with the service, again achieving a record N5.96 trillion collections in 2022. The performance, the agency said,  represented a 35.6 per cent increment when compared to the preceding years’ collection of N4.39 trillion,” he said.

     Nami said that FIRS has the capacity to shoulder the responsibility of providing the revenue needed for all tiers of governments in the country to cater for the needs of   Nigerians through taxes.

    “This is feasible once we get the much-desired support from the three tiers and the three arms of government, as well as all stakeholders. Our goal is to identify more areas where we can improve in the delivery and efficiency of our collection and plug loopholes while deploying innovative reforms in data and artificial intelligence,” he said.

  • FIRS announces date for commencement of Finance Act 2023

    FIRS announces date for commencement of Finance Act 2023

    The implementation of the amended Finance Act 2023 will start from September 1, 2023.

    The Federal Inland Revenue Service (FIRS) made this disclosure in a public notice it issued in Abuja on Friday, August 25.

    The public service was signed by the agency’s executive chairman, Muhammad Nami.

    The amended Finance Act 2023, which tweaked certain provisions in the tax laws, was enacted on 28h May, 2023 and back dated to take effect from 1 May 2023. 

    The public notice read: “However, pursuant to the Finance Act (Effective Date Variation Order) 2023, the effective date was changed to 1 September 2023.

    Consequently, taxpayers, tax practitioners and the general public have been “invited to take notice that the amended provisions shall take effect as follows:

    It added: “Value Added Tax (VAT) withheld or collected, Section 14(3) of the VAT Act was amended to the effect that persons appointed to withhold or collect VAT shall remit the VAT withheld or collected on or before the 14th day of the month following the month in which the VAT was withheld or collected”. 

    “Consequently, all VAT withheld or collected in August 2023 shall be remitted to FIRS on or before the 14th of September 2023. 

    “Similarly, VAT withheld or collected in subsequent months shall be remitted to FIRS not later than 14h day of the month following that in which the VAT was withheld or collected”.

    VAT on Items Excluded from Building. The definition of “building” was amended in Section 46 of the VAT Act to exclude any fixture or structure that can be easily removed from the land. 

    Examples of items excluded are radio and television masts, transmission lines, cell towers, mobile homes, caravans and trailers. As such, all the items removed from the definition of land have become chargeable to VAT.

    Companies letting, trading in or providing services with such items must charge VAT at the prevailing rate with effect from 1st of September, 2023.

    Rate of Tertiary Education Tax (TET). By the amendment to Section 1(2) of TET Act, the rate of TET was changed to three percent of assessable profits.

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    According to the FIRS, “the new TET rate of three percent shall take effect for TET becoming due in respect of accounting period ending on or after 1 September, 2023.

    Investment Allowances and Convertible Currencies. Sections 32, 34 and 37 of the Companies Income Tax Act (CITA) granting allowances in respect of capital expenditure incurred in certain circumstances, and tax exemption on income earned in convertible currencies from tourists by hotels have been repealed. 

    The FIRS said: “Consequently, the said allowances and tax exemption are no longer available for tax returns becoming due in respect of accounting period ending on or after 1 September, 2023.” 

  • FIRS steps up plan to prevent tax evasion by firms

    FIRS steps up plan to prevent tax evasion by firms

    All shipping companies operating within Nigeria’s territorial waters have been given December 31st, 2023 deadline by the Federal Inland Revenue Service (FIRS) to settle any outstanding tax returns.

    The deadline was contained in a public statement issued yesterday and signed by Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami. The order came after two previous statements issued by the FIRS in June and December 2021

    The two earlier directives outlined the basis of taxation for international shipping lines and urged them to sort out their tax responsibilities within three months.

    Read Also: FIRS issues strong warning to shipping companies defaulting on taxes

    FIRS stated that if any shipping companies fail to comply with the deadline, the agency will work with relevant security agencies to prosecute defaulters

    Analysts said the latest move by the FIRS was aimed at improving revenue generation for the country by ensuring that all international shipping companies operating within Nigerian waters comply with tax regulations.

    The directive comes amidst efforts by the Nigerian government to improve its tax revenue generation, as well as clamp down on companies who evade tax payments.

    Analysts said the move by FIRS was expected to improve tax compliance among shipping companies operating in Nigeria’s territorial waters, thus increasing the country’s revenue generation.

    Analysts also said the deadline sent a message to other companies to comply with tax regulations or face legal consequences.

  • FIRS appoints ‘Shola Bello as new deputy manager

    FIRS appoints ‘Shola Bello as new deputy manager

    In a groundbreaking development, Oluwashola Fausath Bello has been appointed as the Deputy Manager at the Federal Inland Revenue Service (FIRS). The FIRS, entrusted with the assessment, collection, and accounting of tax and other revenues for the Federal Government of Nigeria. Bello’s swift rise within the institution underscores her exceptional talent, relentless work ethic, and deep expertise in business and taxation.
    Bello’s appointment to the leadership position is nothing but her extraordinary journey of hard work and dedication.

    Before joining FIRS, Bello had served as Head of Customer Service Operations for about 6 years at the Eco Bank, where she spearheaded a comprehensive overhaul of the customer service function, integrating advanced digital banking solutions and increasing digital transaction rates by 75%, significantly enhancing operational efficiency at Eco Bank.

    Having served as the Assistant Manager at FIRS since July 2019, she has consistently demonstrated remarkable leadership and an unwavering commitment to the agency’s core mandate of revenue generation. Her new role as Deputy Manager places her at the forefront of Nigeria’s fiscal landscape, where she will continue to drive policies aimed at improving the country’s tax system and overall economic stability.
    Her career trajectory at FIRS is a prime example of excellence and resilience.

    Over the years, she has contributed significantly to the agency’s innovative initiatives, particularly in enhancing the efficiency of tax collection processes. Her wealth of experience, spanning both business and taxation, has been instrumental in achieving key milestones for the FIRS, which plays a vital role in funding government projects and national development.
    Ms. Bello’s ascension to the Deputy Manager role also reflects the agency’s recognition of her potential for fostering strategic growth and reform within FIRS. Her leadership is expected to inspire other employees and provide a blueprint for future generations of tax administrators in the country.

    As she embarks on this new chapter of her career, Ms. Bello’s appointment stands as a remarkable achievement not only for her but for the entire FIRS team. Her success embodies the values of hard work, dedication, and the transformative power of competence in public service.

  • FIRS names over 19,000 tax defaulters

    The Federal Inland Revenue Service (FIRS) has taken possession of the bank accounts of over 19,000 tax defaulters and vowed to keep the accounts under its possession until they regularise their tax status.

    Apparently reeling from the accusation that it is not doing enough to generate revenue, the FIRS has gone ahead to publish the names of tax defulters with an advice to the tax defaulters to come along with some documents before the Service can release their bank accounts.

    Some of the companies whose accounts have been taken over or placed under lien are Obasanjo Farms Nig. Ltd (Feedmill); Iyiola Omisore & Par; Citiroof Aluminium Co. Ltd; Coldstone Creamery Limited (Yaba); Davido Music Worldwide Ltd; Grand Square Supermarket and Stores Ltd; Open Heavens Bliss Enterprises; The Assemblies of God Nigeria; X3M Music Limited.

    Others are: Tiger Foods Limited; Slot Enterprises; Payporte Technology Limited; Visionscape Sanitation Solutions Limited; Erisco Foods Limited Milk Cube account; God is Good Motors (Vehicle sales account); Hubmart Stores Limited and United Capital Plc among many others

    To lift the lien on the business accounts, the FIRS urged the tax defaulters to take the following steps to regularize their tax status.

    These are: Make payments of applicable taxes for the period owed; Visit the closest Substitution Review Unit (SRU) to: a) Fill Tax payers form as required; b) Attach evidence of tax payments made alongside the following: i. A letter to the ECFIRS on response to the substitution on your account; ii. Attach to letter a) Copy of your last file return; b) Copy of current tax clearance certificate; c) Bank statement for 3 years; d) Copy of incorporation and commencement of business.

    The tax defaulters are also expected to: State Sources of income if Loan; or operate Bureau de Change etc.; the SRU team will analyse and give feedback or in the alternative “send these details to taxpay@firs.gov.ng.”

    The FIRS had recently advertised that it would enforce the payment of whatever outstanding tax each company had against it.

    Read Also: ‘FIRS boss not under probe’

    In the advert, the FIRS warned that “all Companies, which had their Bank Accounts placed under Lien by the Federal Inland Revenue Service (FIRS) pursuant to Section 31 of the FIRSE Act, but are yet to regularise their tax status with the FIRS, that if they fail, refuse or neglect to pay the tax due within 30 days of this Notice, the FIRS shall in accordance with Section 49 (2) (a- d) of the FIRSE Act proceed and enforce the payment of the said tax against all the Directors, Managers, Secretaries and every other person concerned in the management of the Companies and recover the said tax from such persons without further notice”

    The FIRS also cautioned the tax defaulters that “for the avoidance of doubt, the above Section authorises the FIRS to proceed against and punish every officer, Manager, Director, Secretary or any person concerned with the management of the Company in like manner as if he/she had committed the offence.”

    The Presidency led by the Chief of Staff to President Muhammadu Buhari, Alhaji Abba Kyari had sent a strongly worded query to the FIRS boss demanding an explanation why there are negative variance in the revenue generated between 2015 and 2018.

  • Our tax feud with FIRS at tribunal, says MTN

    Telecoms giant, MTN Nigeria Communications Plc, has said its tax dispute with the Federal Inland Revenue service (FIRS) is before the Tax Tribunal set up by FIRS Chairman, Tunde Fowler and Minister of Finance, and are awaiting a decision.

    In a statement, the telco said: “Our attention has been drawn to media reports regarding the status of taxes relating to the 2015 fine imposed on MTN Nigeria Communications Plc (MTN). We acknowledge that there is a technical disagreement between MTN and the Federal Inland Revenue Service (FIRS) as to how the fine should be treated for tax purposes. However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision.”

    It said it remained fully compliant with Nigerian tax laws and will abide by the findings of the tribunal. “The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria,” it affirmed.

    Since incorporation in 2001, MTN has invested more than N2 trillion into the economy and has paid more than N1.7 trillion in taxes, levies and other regulatory fees.

  • FIRS will exceed N5.32t revenue collection in 2019, says Fowler

    The Federal Inland Revenue Service (FIRS) yesterday promised to surpass in 2019 the N5.32 trillion it made last year.

    The N5.32 trillion remains its highest yearly collection so far.

    In a paper titled: “The imperatives of regulatory processes, procedures and compliance in the Nigerian business sector” presented at a forum organised by the Nigerian-German Business Association in collaboration with The Nation in Lagos, FIRS Chairman Babatunde Fowler said the agency realised N1.6 trillion between January and March.

    Before 2018, the highest revenue made by the Service was N5.07 trillion in 2012.

    Represented by a FIRS Deputy Director, Sunday Okeowo, Fowler said the Service for the first time crossed the N1 trillion threshold in Value Added Tax (VAT) collection in 2018. Another achievement was the e-stamp duties collection, which is also on a steady increase, and a collection of N15.66 billion last year.

    His words: “Year on year, with the exception of the year 2016, the collection performance of the FIRS grew by an average of 21per cent  for the four year period.”

    According to him, technological initiatives introduced by FIRS in delivering taxpayers services such as e-payment channel, e-receipt among others have contributed immensely to tax collection.

    Nigerian-German Business Association Director-General Gbenga Adebija said non-compliance to regulations by operators hinders growth in the industry.

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    Against a backdrop of operating concerns, he said Nigerian businesses are being outpaced by their international rivals in terms of revenue and profit growth because of regulatory challenges.

    Despite this, he said local businesses still spend a great deal of time and money ensuring that they are compliant with commercial, tax, health and safety and environmental laws.

    He said compliance with regulations would eliminate crisis in the industry and guarantee the long-term viability of the industry.

    He observed, however, that compliance should not be seen as a burden but as an opportunity to improve business efficiency.

    Adebija said there was a need for business owners in the country to follow the laid down principles and the guidelines set up the government to end the unstructured and relatively chaotic business environment and erosion of profit margins.

    National Agency for Food and Drug Administration and Control (NAFDAC) Director-General Prof Mojisola Adeyeye said the enhancing food safety mechanism to make sure food offered for import meets the nation’s food safety requirements.

    Speaking through her Special Assistant, Prof Adeyeye said there was increased surveillance to keeps out unsafe foods, and effective response when unsafe imported food is found, and that the agency has an effective and efficient food import programme.

    According to her, enhanced inspections at ports of entry and foreign food facilities, are part of the strategy to improve its oversight of imported foods.