The Federal Inland Revenue Service (FIRS) has set a revenue collection target of N19.4trillion in the 2024 fiscal year.
The Coordinating Director in charge of Special Tax Operations Group, Amina Ado who disclosed this on Wednesday IN Abuja said the ongoing reforms in the Service was aimed at enhancing FIRS capacity to realise and exceed its target.
Ado said the FIRS performance of over 107 percent for 2023 exceeded its revenue collection target by about N816 billion.
Actual revenue collection for the year stood at about N12.4 trillion, with oil revenue accounting for N3.17 trillion, or 25.6 percent, while non-oil revenue was about N9.2trillion, or 74.4 percent.
With the ongoing reforms and operational restructuring at FIRS, the Director said the Service was determined to meet its target for 2024.
She spoke in Abuja at the management retreat of the Service with the theme “Re-imagining Tax Administration for Equity and Economic Growth.”
The Chairman of FIRS, Zach Adedeji, said part of the ongoing reforms at the Service was the unveiling of the new FIRS organisational structure as a demonstration of the commitment to revolutionise tax administration in Nigeria.
Adedeji said the cornerstone of the new structure was a customer-centric arrangement to streamline processes and enhance efficiency in tax operations in the country.
The new structure to take effect from February 2024 would modernise and digitise the tax administration in the country.
“In our pursuit for a more efficient and contemporary tax administration methodology, we are embracing an integrated tax approach, leveraging technology at every step. This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world”, he said.
The structure, he explained, advocates for a comprehensive approach to taxpayer services, consolidating FIRS core functions and support under one umbrella.
By tailoring FIRS services to specific taxpayer segments, the FIRS Chairman said it would simplify the taxpayer experience and establish a user-friendly interaction for taxpayers without complexities and overlaps.
Instead of maintaining different departments for distinct tax categories, he said the new structure would formulate taxpayer segments based on thresholds, to guide taxpayers and ensure they are serviced according to their specific needs, eliminating confusion and redundancy in tax administration.
Also, the new structure, the FIRS Chairman pointed out, was a demonstration of FIRS’ commitment to redefine its role in shaping a modern, efficient, and customer-focused tax administration system through innovative organisational restructuring and process optimization,
“FIRS is committed to fostering a taxpayer-friendly environment that aligns with global best practices and positions Nigeria as a leader in contemporary tax administration.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who declared the retreat open and unveiled the new operational structure, charged the FIRS to deploy the necessary technology to drive tax revenue generation and meet the 18 percent tax-to-GDP target in the near future.
“Our tax-to-GDP target is 18 percent, from the current 10.8 percent and the FIRS is a strategic agency mandated by the federal government to achieve that,” the Minister said.
With a revenue generation target of N19.4 trillion in the 2024 budget, Edun said the Service has an increased target to meet this financial year.
“The only way to achieve that is to re-strategise and deploy technology to ensure that our tax revenues are increased for economic growth,” he said.