The Federal Inland Revenue Service (FIRS) says it generated a revenue of N4.9 trillion in 2020.
According to a statement signed by Abdullahi Ahmad, FIRS director of communications and liaison, this represents 98 percent of its N5.076 trillion target.
Ahmad quoted Mohammed Nami (pictured), FIRS executive chairman, as saying the near 100% feat is exceptional when placed against the backdrop of the economic impact of the coronavirus outbreak; the global decline of crude oil prices; business disruptions and lootings during the #EndSARS protests; tax waivers granted to ease the impact of the COVID-19 lockdown; tax exemptions granted to small companies in the 2019 Finance Act; and insecurity in some parts of the country.
Nami said crude 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 of the total revenue generated in 2020.
The FIRS chairman attributed the revenue generation success in 2020 to a number of reforms initiated by the agency’s management under his leadership.
“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 is being automated,” the statement quoted Nami to have said.
“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.”