FIRS realises N5.5trn. half-year tax revenue collection; optimistic about overall full-year performance

Between January and June 2023, the Federal Inland Revenue Service (FIRS) said it realized about N5.5 trillion in total tax revenue collection for the year.

The Chairman of FIRS, Muhammad Nami, who announced this while presenting the 2023-2024 tax revenue outlook to the National Economic Council at its meeting on Thursday in Abuja said the collection is the highest tax revenue recorded by the Service ever in the first six months of any fiscal year.

A review of the FIRS’ 2023 Half-Year Collection Report showed the tax agency achieved over one hundred percent of its target for the first-half of the year when compared with a mid-year target of N5.3 trillion.

The report said tax revenue from the oil sector between January and June 2023, stood at about N2.03 trillion, against a target of N2.3 trillion, while non-oil tax collection revenue stood at N3.76 trillion, against a target of N2.98 trillion.

In his presentation, Nami said the Service collected a total of about N1.65 trillion tax revenues in June 2023, the highest collection in any single month.

Describing the Service performance as “a good head start, despite stubborn headwinds,” Nami attributed it to improved voluntary tax compliance enabled by the automation of FIRS’ tax administrative processes.

“This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023”, said Mr Nami.

“This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes; as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy”, he said.

On the outlook for the remainder half of the year, the FIRS Executive Chairman assured that the country should expect “better days ahead” in terms of tax revenue collection.

“We believe that the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes and the positive impact of the current government’s policies on the economy,” said the Executive Chairman.

In 2022, the FIRS recorded a total collection of N10.1 trillion,  the highest tax collection ever in a single financial year.