Despite stubborn headwinds, Nigeria generates N5.5trn tax revenue in first half of 2023
…..as non-oil sector records N3.76trn – FIRS
The Federal Inland Revenue Service said it has collected total tax revenue of N5.5 trillion between January and June, 2023.
The amount is the highest tax revenue the Service has ever collected in any first six months of a fiscal year.
Executive Chairman, FIRS, Muhammad Nami, stated this while presenting the 2023-2024 tax revenue outlooks to the National Economic Council at its meeting held on Thursday at the Presidential Villa, Abuja.
The presentation, which contained FIRS’ 2023 Half-Year Collection Report, showed that the FIRS 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.
A breakdown of tax revenue collected showed that the non-oil sector performed better as a total of N3.76 trillion, in the period under review was achieved as against a target of N2.98 trillion.
On the other hand, revenues from the oil sector stood at N2.03 trillion, as against a target of N2.3 trillion.
The Service also said it collected the highest tax revenue in a single month in June 2023 which was N1.65 trillion.
Commenting on the performance, Nami described it as “a good head start, despite stubborn headwinds,” stressing that the success recorded was due 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.
“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.
Speaking on the outlook for the remainder of the year, the FIRS boss gave assurances 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,” he said.
It would be recalled that the Service achieved a total collection of N10.1 trillion in 2022, being the highest tax collection ever made by the FIRS in a single year.