FIRS collects ₦4.9trn revenue in 2020

The Federal Inland Revenue Service (FIRS) has revealed that it collected ₦4.9 trillion revenue for the federal government in the year 2020.

Chairman of FIRS, Muhammad Nami, a press conference in Abuja, emphasized that the N4.9 trillion revenue generated represents approximately 98% of the national tax target of NN5.076 trillion set for the Service by the Federal Government in the 2020 budget.

Muhammad Nami identified some key sectors which include the banking, telecommunications and the ICT as major contributors to the high revenue generation.

Nami had declared: “The conscientious taxpayers in the country and dedicated members of staff of the FIRS nationwide were significant 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 in 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.”

The FIRS Chairman maintained that that the near 100% collection success was all the more remarkable when placed against the backdrop of the debilitating effects of COVID-19 on the Nigerian economy.

The FIRS statistics indicated that the non-oil tax collection was 109% in 2020, which is 9% higher than the previous year.