The Federal Inland Revenue Service (FIRS) in a statement yesterday said it collected N4,952,243,711,728.37 trillion in total tax revenue in the year 2020.
The collection for 2020 falls below the N8.5 trillion revenue target for the year.
According to the statement that was issued by FIRS spokesman, Abdullahi Ismaila, the agency’s chairman, Mr Muhammad Nami despite the revenue for the year is remarkable when placed against the backdrop of the effects of COVID-19 on the Nigerian economy.
Nami noted that the FIRS recorded the revenue collection at a time when the price of oil was low.
He attributed the FIRS revenue generation “success” in 2020 to a number of reforms initiated by the board and management of the Service under his leadership. The reforms included capacity building for members of the staff; improved staff welfare package; promotion and proper placement of staff; deployment of appropriate technology for tax operations; segmentation of taxpayers to ease tax compliance; and continuous collaboration with relevant stakeholders, among others.
The FIRS boss commended “the conscientious taxpayers in the country and dedicated members of staff of the FIRS nationwide for their support and devotion to work which made this performance possible despite the numerous obstacles encountered by the Service in 2020.”
The executive chairman added, “The FIRS is optimistic this current fiscal year 2021 will be better than 2020. We shall perform exceedingly well given that our Service reforms are expected to yield greater dividends, especially as different parts of tax administration are being automated.
“We are also optimistic that exploration activities will improve in the oil sector and increase the prospect of higher tax revenue from the sector. Similarly, the ongoing reforms by the Service together with increased stakeholder collaborations will brighten the prospect of improved voluntary compliance and consequently higher tax revenue generation for the country this year and beyond.”