BusinessWhy FIRS Generated N4.9trn Tax Revenue In 2020 Despite Covid-19 – Nami

Why FIRS Generated N4.9trn Tax Revenue In 2020 Despite Covid-19 – Nami


BEVERLY HILLS, January 19, (THEWILL) – The Federal Inland Revenue Service (FIRS) collected N4, 952, 243,711,728.37 in total tax revenue in the year 2020, the Executive Chairman of the Service, Mr. Muhammad Nami, has disclosed.

The amount, which represents approximately 98 per cent of the national tax target of N5.076 trillion set for the agency by the federal government, according to him, was made possible by positive reforms in the Service under his watch.

Addressing a press conference in his office, Nami pointed out that the near 100 per cent collection feat was more remarkable when placed against the backdrop of the debilitating effects of COVID-19 on the Nigerian economy and other challenges.

The challenges include 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 recalled that oil which, used to contribute over 50 per cent in tax returns through the Petroleum Profits Tax in previous years, accounted for only 30.6 per cent contribution to the tax revenue generated in 2020, adding that the non-oil tax collection was 109 per cent in 2020, which is 9 per cent higher than the previous year.

The revenue chief attributed the FIRS revenue generation success in 2020 to several reforms initiated by the Board and Management of the Service under his leadership.

The reforms, according to him, included capacity building for members of 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.

“I commend 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.”

He said the FIRS was optimistic that current fiscal year 2021 will be better than 2020, adding, “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.”

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