The federal government has set a revenue target of N25.2 trillion for the Federal Inland Revenue Service (FIRS) by 2025. Dr. Zacch Adedeji, Executive Chairman of the FIRS, made the announcement at a Strategic Management Retreat in Abuja today. According to him, the new objective follows the Service’s N21.6 trillion revenue in 2024, which was much higher than the year’s target of N19.4 trillion.
Mr. Adedeji stated that 2024 was a year in which his team positioned the organisation to become “a globally recognised, efficient, and trusted revenue authority,” with a focus on growing the nation’s economy. He vowed to consolidate internal processes to increase revenue creation.
According to him, “The FIRS’s mission for 2025 is ambitious: to create an exceptional service distinguished by the expertise of its staff, the modernisation of its facilities, and the innovative use of technology to improve processes.” This purpose is more than just maintaining success; it is also about constantly increasing effect and strengthening the FIRS’s status as a model revenue authority around the world.”
Mr. Adedeji presented a strategy roadmap based on three critical pillars: capacity building and training, infrastructure and facility enhancement, and technological advancement. Amina Ado, Coordinating Director of the Large Taxpayers Group, cited automation, the implementation of TaxProMax, the use of third-party data for intelligence, increased use of withholding tax, improved debt collection, and organisational reforms as some of the factors contributing to the Service’s success.
She stated that, by 2024, all non-oil tax kinds had exceeded their targets. Compared to 2023, all tax categories did better in 2024. Oil taxes rose by 35%, non-oil taxes rose by 97%, and the total rise was 76%. Stamp Duties raised transaction counts by 16% and collections by 149%.
The integration of tax offices and completed audit cases grew by 62%, while collections increased by 83%. Improvements in debt management and enforcement resulted in a 119% rise in FIRS collections in 2024 over 2023. The establishment of the 3% rate, as well as the exchange rate, had an impact on the Education Tax. Value Added Tax (VAT) revenues increased as a result of increased withholding tax, both locally (including government) and internationally, as well as more consumption.
Stamp Duty (SD) collections saw increased debt collection and revenue from the government and the oil and gas sector. NASENI/PTF collections benefited from the recognition of 2023 revenues in 2024, increased compliance, and the exchange rate. Several specialists were asked to talk to the FIRS management team during the retreat, which had the theme “Building a High-Performing FIRS: Elevating Performance Through Collaboration and Innovation.”
Focus areas included amenities, with the organisation aiming for outstanding facilities as a catalyst to increase productivity. This included strengthening physical infrastructure and facility management to create a work environment that promotes productivity and efficiency. The retreat also aimed to improve company operations by harnessing cutting-edge technology, as well as human capital through deeper career and skill development.
