In 2024, the Federal Inland Revenue Service (FIRS) of Nigeria collected N21.6 trillion in tax revenue, exceeding its target of N19.4 trillion by N2.2 trillion. This marks a 112% performance rate and a 76% increase from the N12.374 trillion collected in 2023.
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Revenue Composition
The impressive revenue growth came from both oil and non-oil tax sources:
- Non-Oil Taxes: Increased by 97%, with significant contributions from Company Income Tax (CIT), Value-Added Tax (VAT), and other non-oil categories.
- Oil Taxes: Despite lower crude oil production, oil tax revenue rose by 35% compared to 2023. The country produced an average of 1.55 million barrels per day, below the projected 1.78 million barrels per day, but still achieved notable tax revenue growth.
Factors Behind the Record-Breaking Performance
Several key factors contributed to FIRS’s success:
- Government Support: The Tinubu administration provided an enabling environment for efficient tax collection.
- Internal Reforms: Improvements in technology, processes, and human resources enhanced tax administration efficiency.
- Staff Dedication: The commitment and professionalism of FIRS staff played a crucial role.
Looking Ahead to 2025
FIRS has set an ambitious N25.2 trillion revenue target for 2025, focusing on:
- Capacity Building: Training staff to global standards.
- Infrastructure Enhancement: Upgrading facilities for better efficiency.
- Technological Advancement: Expanding tax administration systems for seamless processing.
The achievements of 2024 highlight the impact of strategic reforms. With a focus on innovation and efficiency, Nigeria aims to sustain and surpass this success in 2025 and beyond.
