The Federal Inland Revenue Service (FIRS) has unveiled its ambitious plan to propel tax revenue collection to unprecedented heights, targeting a staggering 57% surge, reaching an astounding N19.4 trillion.
The detailed strategy, disclosed in a document cited by Bloomberg, underscores FIRS’s goal to bolster oil revenues to N9.96 trillion, with non-oil tax revenue expected to contribute significantly at N9.45 trillion.
To materialize this audacious plan, FIRS is set to implement a multifaceted approach, focusing on efficiency enhancement, heightened tax compliance, and a strategic organizational restructuring prioritizing taxpayers.
A pivotal aspect of the initiative involves the integration of advanced automation measures for tax collection, marking a significant step towards a more streamlined and technologically-driven revenue collection system.
The document outlines FIRS’s commitment to leveraging modern technologies to ensure a seamless and effective tax collection process.
In a bid to achieve the lofty targets, FIRS is gearing up for an internal reallocation from oil to non-oil sectors.
The document states, “carry out internal reallocation from oil to non-oil, given that the budget oil revenue for 2024 was increased by 214% compared to 2023 actual, while non-oil was increased by only 3%.”
This strategic shift reflects FIRS’s proactive stance in adapting to the evolving economic landscape.
Notably, these ambitious plans align with President Bola Tinubu’s sweeping reforms designed to augment government revenues.
While emphasizing the imperative of taxing the “seed” rather than just the fruits, President Tinubu’s vision underscores the government’s commitment to implementing comprehensive fiscal policies for sustainable economic growth.
FIRS’s endeavor, if successful, could mark a watershed moment in Nigeria’s fiscal landscape, significantly bolstering the government’s financial standing.
