The Federal Inland Revenue Service (FIRS) has achieved a significant milestone in tax revenue collection, reporting an impressive N5.5 trillion between January and June 2023.
This marks the highest ever recorded tax revenue collection for any first six months of a fiscal year in the history of the Service.
Mr. Muhammad Nami, the Executive Chairman of FIRS, presented the 2023-2024 tax revenue outlook during a meeting with the National Economic Council at the Presidential Villa in Abuja on July 20, 2023.
Surpassing its target, the FIRS collected over 100% of the intended goal of N5.3 trillion, a clear indication of the Service’s effective tax administration efforts.
Breaking down the figures, the oil sector contributed N2.03 trillion to the total tax revenue, while the non-oil sector accounted for N3.76 trillion.
Notably, the Service achieved a remarkable milestone in June 2023 by collecting N1.65 trillion in tax revenues for that month alone, representing the highest ever recorded tax revenue collection for a single month.
Mr. Nami attributed this success to improved voluntary tax compliance, enabled by the implementation of automated tax administrative processes.
He praised taxpayers for their willingness to comply with tax regulations, underscoring the vital role their contributions play in advancing the nation’s economic growth.
Despite facing challenges from the impact of the currency redesign and the 2023 General Elections on the economy in the first and second quarters, the FIRS showcased a commendable performance in revenue collection, setting a strong foundation for the rest of the year.
Looking ahead, Mr. Nami expressed confidence in the Service’s ability to achieve even better results in the second half of the year. He highlighted the current administration’s supportive policies and the ongoing improvements in tax administration processes as key factors driving this optimism.
Additionally, the FIRS remains committed to continuous engagement with stakeholders in both the formal and informal sectors of the economy, ensuring sustained growth and compliance in tax revenue collection.
