The Federal Inland Revenue Service (FIRS) has unveiled an ambitious plan to generate a whopping N25 trillion for the country in 2024. This announcement was made during a presentation by the FIRS Chairman, Muhammad Nami, at a recent meeting of the National Economic Council (NEC) held in Abuja. The council meeting, chaired by Vice President Kashim Shettima, also saw the FIRS setting a target of N7.5 trillion in revenue generation for the second half of the current year.
The NEC commended the FIRS for its proactive initiatives and reforms aimed at bolstering revenue generation in the country, particularly acknowledging the bold projection of N25 trillion for 2024. As part of encouraging state participation, the council urged states to utilize the peer review mechanism within the Nigerian Governors Forum and foster stronger partnerships with the Federal Inland Revenue Service to enhance their internally generated revenue.
During the presentation, Chairman Muhammad Nami highlighted key areas where major revenue reforms have been implemented between 2020 and 2023. These areas include the restructuring of tax operations and administration, the automation of tax administration and operational processes, the establishment of a customer-focused service, and the transformation of the institution into a data-centric entity.
For the short-term plans, the FIRS outlined three core strategies to achieve their revenue targets. Firstly, there will be a continued push for the automation of tax administration within the FIRS itself. Secondly, efforts will be made to bring the informal sector into the tax net through strategic partnerships. Lastly, the FIRS aims to enhance compliance by intensifying data streams from various industry regulators, government agencies, industry operators, and international treaty partners.
With an ambitious goal of N25 trillion in revenue generation, the FIRS is gearing up for a series of transformative measures. The emphasis on restructuring tax operations and administration aims to make the process more efficient and effective. By embracing automation in tax administration and operations, the FIRS seeks to streamline procedures, reduce paperwork, and improve overall productivity. Additionally, the institution’s customer-focused approach intends to enhance taxpayer experience and satisfaction, fostering a positive relationship between the taxpayers and the revenue service.
Another crucial aspect of the FIRS’s strategy is the inclusion of the informal sector in the tax net. This move is expected to broaden the tax base and increase overall revenue collection. Collaborating with industry regulators, government agencies, and other stakeholders will provide valuable data insights, which will play a pivotal role in fostering compliance.
The FIRS’s vision of becoming a data-centric institution signifies a shift towards leveraging data-driven decision-making. By harnessing the power of data analytics, the revenue service aims to make well-informed choices, identify potential areas for revenue growth, and better understand taxpayer behavior.
Looking ahead, the FIRS is determined to push for further automation in tax administration, leveraging technology to modernize its operations continually. This will not only lead to increased efficiency but also provide a seamless and convenient experience for taxpayers. The strategic partnerships with the informal sector will help bridge the gap between taxpayers and the revenue service, ensuring more individuals and businesses participate in fulfilling their tax obligations.
