The Federal Inland Money Service (FIRS) said that in 2022, the tax revenue it received exceeded N10 trillion, the biggest amount ever noted by the agency. This information was provided by the Service in the FIRS 2022 Performance Update, which was released to the public on Monday following a briefing by its Executive Chairman, Muhammad Nami, with President Muhammadu Buhari.
The FIRS reported that it exceeded its objective of N10.44 trillion by collecting a total of N10.1 trillion in oil (N4.09 trillion) and non-oil (N5.96 trillion) revenues.
A breakdown of the numbers reveals that corporation income tax (CIT), value-added tax (VAT), and the electronic money transfer levy each made contributions of N2.83 trillion, N2.51 trillion, and N125.67 billion, respectively, while earmarked taxes made up N353.69 trillion.
“Non-oil taxes contributed 59 per cent of the total collection in the year, while oil tax collection stood at 41 per cent of the total collection,” the report noted.
The FIRS would surpass the N10 trillion threshold in tax revenue collection for the first time. 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 established by Executive Order No. 007 of 2019 was N146.27 billion, and it was included in the overall revenue.
According to the report, N1.805 trillion in tax incentives given under the relevant laws, which totaled N10.1 trillion, were not included in the N10.1 trillion.
The FIRS noted the Muhammad Nami-led management came up with a four-point focus – administrative and operational restructuring, making the service customer-focused, creating a data-centric institution, and automation of administrative as well as operational processes – to put this unprecedented tax collection into perspective.
It further stated that the management had implemented reforms related to the four-point program from 2020 to 2022, and those reforms had yielded benefits.
“The reforms introduced at different times in 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 a 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 the FIRS office,” the report read.