For the period from January to June 2023, the Federal Inland Revenue Service (FIRS) reported an impressive total tax revenue collection of N5.5 trillion. This sum reflects the largest tax revenue the service has ever seen throughout a fiscal year’s first half.
During the presentation of the 2023-2024 tax revenue outlook to the national economic council at the Presidential Villa in Abuja on Thursday, July 20, 2023, the chairman of FIRS, Mr. Muhammad Nami, disclosed these remarkable results. The report showcased the service’s exceptional performance, as it achieved over 100 percent of its target for the first half of the year, surpassing a mid-year target of N5.3 trillion.
In the report, it was revealed that tax revenue collected from the oil sector from January to June 2023 amounted to N2.03 trillion, slightly below the target of N2.3 trillion. Meanwhile, non-oil tax collection reached N3.76 trillion, exceeding the target of N2.98 trillion.
Mr. Nami highlighted that the Service collected a staggering N1.65 trillion in tax revenues in June 2023, marking the highest tax revenue ever collected in a single month.
The exceptional performance was credited to improved voluntary tax compliance, facilitated by the automation of FIRS’ tax administrative processes. Mr. Nami also acknowledged the challenging economic conditions faced during the first and second quarters of 2023 due to the currency redesign and the 2023 General Elections.
Mr. Nami’s media aide, Johannes Oluwatobi Wojuola, quoted him as saying, “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.”
He further explained, “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.”
Looking ahead to the second half of the year, the FIRS chairman assured the nation that they can expect “better days ahead” in terms of tax revenue collection. He expressed confidence in the continuing improvement of tax administration processes and the positive impact of the current government’s policies on the economy.
In 2022, the FIRS achieved a total collection of N10.1 trillion, marking the highest tax collection ever made by the service in a single year.