The Federal Inland Revenue Service (FIRS) has achieved a remarkable feat by recording a total tax revenue collection of N5.5 trillion for the first half of 2023, from January to June. This historic figure marks the highest tax revenue collection ever recorded by the Service in any first six months of a fiscal year.
During a presentation of the 2023-2024 tax revenue outlook to the National Economic Council at the Presidential Villa in Abuja on Thursday, Mr. Muhammad Nami, the Executive Chairman of FIRS, revealed that the Service surpassed its mid-year target of N5.3 trillion by achieving over one hundred percent of the set goal.
The report showed that tax revenue collected from the oil sector during the first half of 2023 reached N2.03 trillion, slightly below the target of N2.3 trillion. However, the non-oil tax collection significantly outperformed the target, reaching N3.76 trillion, surpassing the target of N2.98 trillion.
A standout achievement for FIRS was the tax revenue collected in June 2023, which amounted to N1.65 trillion. This marks the highest tax revenue collected in any single month, showcasing the success of the Service’s efforts.
Mr. Nami attributed the exceptional performance to improved voluntary tax compliance among taxpayers, which was made possible by the automation of FIRS’ tax administrative processes. Despite facing challenges such as the impact of currency redesign and the 2023 General Elections on the economy during the first and second quarters of 2023, the Service managed to achieve this impressive result.
Looking ahead, Mr. Nami expressed confidence in the country’s tax revenue collection for the second half of the year, assuring that “better days ahead” are expected due to the continuing improvement in tax administration processes and the positive impact of the government’s policies on the economy.
This latest achievement follows FIRS’ successful total collection of N10.1 trillion in 2022, which marked the highest tax collection ever recorded in a single year by the Service. The continued growth in tax revenue collection demonstrates FIRS’ commitment to driving voluntary tax compliance and enhancing its tax administration processes, leading to significant contributions to the country’s revenue.
