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Nigeria generates N4.9 trln tax revenue in 2020~FIRS

By on January 19, 2021 0 92 Views

Nigeria generated a total revenue of N4.95 trillion from company tax and other taxes in 2020, according to the Federal Inland Revenue Service (FIRS).

In a statement on FIRS Director of Communications and Liaison, Abdullahi Ahmad, said the figure fell short of the N5.07 trillion targetted by the service for the fiscal year.

Qoting the Executive Chairman of the Revenue Service,  Muhammad Nami, who described the 98 percent achieved as “remarkable when placed against the backdrop  of the debilitating effects of COVID-19 on the Nigerian economy; the all-time low price of crude oil in the international market; business disruptions and lootings during the #EndSars protests; generous tax waivers granted by the FIRS to ease the impact of the COVID-19 shutdown; additional tax exemptions granted to small companies in the 2019 Finance Act; and  insecurity in some parts of the country.”

He disclosed that oil which used to contribute over 50 percent in tax returns through the Petroleum Profits Tax in previous years, accounted for only 30.6 percent contribution to the tax revenue generated in 2020.

The FIRS boss said that the non-oil tax collection was 109 percent in 2020, which is 9 percent higher than the previous year.

Nami 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 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 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,” Nami said.

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