FIRS breaks all-time record, generating N6.4 trillion in revenue in 2021

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The Federal Inland Revenue Service (FIRS) reported $6.4 trillion in revenue in 2021, the highest in its history.

The 2021 revenue collection surpassed the N5.3 trillion Generated in 2019 when Babatunde Fowler was the head.

Johannes Oluwatobi Wojuola, special assistant for media and communications to the chairman of FIRS, said in a statement released on Thursday.

According to Wojuola, FIRS Executive Chairman Muhammad Nami said that despite the restrictions it faced in 2020/2021, the agency achieved over one hundred percent of its collection goal.

“The FIRS collected a total of N$6.405 trillion in revenue from both oil (N$2.008 trillion) and other sources (N$4.396 trillion) in 2021 against a target of N$6.401 trillion,” Nami said.

“Corporate income tax amounted to N1.896 trillion; The petroleum profits tax amounted to N2 trillion; VAT amounted to N2.07 trillion; Electronic money transfer levy was N114 billion; Earmarked taxes amounted to N208.8 billion; among other.

“The non-oil sector contributed 68.64 percent of the year’s total collection, while the oil sector’s contribution was 31.36 percent of the total collection.

“The service issued certificates to private investors and NNPC for the sum of N147.8 billion Road Infrastructure Tax Credit under the Road Infrastructure Modernization Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.”

In another published report, titled FIRS 2021 Performance Update, the agency stated that 2021 income tax receipts were a function of 2020 results of operations, in accordance with the law.

“This year the country entered a second economic recession in five years. The recession was caused by a 5-month lockdown caused by the coronavirus pandemic,” the report said.

“To exacerbate the economic challenges posed by the COVID-19 pandemic, business activities have been disrupted by the end-SARS protests.”

It also noted that the use of technological tools was a game changer for the service.

“After the current management took office, the Federal Inland Revenue Service (FIRS) began strategic administrative and operational reforms; and the implementation of new strategies that would improve their ability to fulfill their mandate.

“The launch of a new automated tax administration system, the ‘TaxPro Max’, in June 2021 was a game changer.

“With the solution, taxpayers experienced ease of registration, reporting, payment and issuance of tax exemption certificates, while the service experienced greater efficiency in the use of resources, resulting in improved tax collection.”

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