The Federal Inland Revenue Service (FIRS) of Nigeria has reported that it collected N5.5 trillion in tax revenue during the first half of 2023. This figure represents the highest tax collection ever recorded by the service in any first six months of a fiscal year.
A breakdown of the tax revenue shows that the service achieved 88 percent of its target from oil revenue and exceeded its target for non-oil tax. Tax revenue from the oil sector for January to June 2023 amounted to N2.03 trillion, slightly below the target of N2.3 trillion. However, non-oil tax collection reached N3.76 trillion, surpassing the target of N2.98 trillion.
The month of June 2023 saw the highest single-month tax revenue collection ever, totaling N1.65 trillion.
Muhammad Nami, the Executive Chairman of the FIRS, attributed the impressive performance to improved voluntary tax compliance resulting from the automation of the agency’s tax administrative processes. He acknowledged that despite challenges such as the impact of currency redesign and the 2023 general elections on the economy during the first and second quarters of 2023, they have managed to achieve this notable revenue inflow.
Nami expressed optimism that the second half of the year would yield even better results due to continued improvements in tax administration processes and the positive impact of the government’s policies on the economy.
It’s worth noting that in 2021, the FIRS reported generating N6.4 trillion in revenue, which included N2.008 trillion from petroleum profit tax and N2.07 trillion from value-added tax (VAT). However, discrepancies have been noted in some of the reported figures, as pointed out by TheCable in their analysis.
In 2022, the service also reported generating N10.1 trillion as revenue, which was described as the highest tax collection ever recorded in the agency’s history.
