Business & Economy

FIRS Generates Record-Breaking Revenue In 2021

Published

3 years ago

Jan 30, 2022.

Damilare Abass

FIRS Generates Record-Breaking Revenue In 2021

The Federal Inland Revenue Service (FIRS) has raked N6.4 trillion as 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, the special assistant on media and communication to the chairman of FIRS, said this in a statement released on Thursday.

According to Wojuola, Muhammad Nami, executive chairman of FIRS, said that despite the limitations faced in 2020/2021, the agency achieved over a hundred percent of its collection target.

“The FIRS, in the year 2021 collected a total of N6.405 trillion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion,” Nami said.

”Companies Income Tax amounted to N1.896 trillion; Petroleum Profits Tax amounted to N2 trillion; Value Added Tax amounted to N2.07 trillion; Electronic Money Transfer Levy amounted to N114 billion; Earmarked Taxes amounted to N208.8 billion; among others.

“Non-oil sector contributed 69 percent of the total collection in the year, while oil sector’s contribution was 31 percent of the total collection.

“The Service issued certificates for the sum of N147.8 billion tax credit to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.”

In another report released titled “FIRS 2021 Performance Update”, the agency explained that in line with the law, 2021 income tax revenue was a function of the outcome of business activities in 2020.

“In that year, the country entered into a second economic recession within 5 years. The recession was occasioned by 5-months of lockdown caused by the Coronavirus pandemic,” the report said.

“To compound the economic challenges of COVID-19 pandemic, business activities were disrupted by the End-SARS protests.”
It further stated that the deployment of technological tools was a game-changer for the Service.

“Upon the coming into office of the current management, the Federal Inland Revenue Service (FIRS) began strategic administrative and operational reforms; and the implementation of new policies that would improve its capacity towards the fulfilment of its mandate.

“The deployment of a new automated tax administration system, the “TaxPro Max” in June 2021 was a game-changer.

“With the solution, taxpayers experienced the ease of registration, reporting, payment and issuance of Tax Clearance Certificates while the Service experienced greater efficiency in the deployment of resources thereby leading to improved revenue collection.”

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