By Maryam Abeeb
The Federal Government has targeted N19.4 trillion ($20.3 billion) revenue collection in 2024.
According to a report, the Federal Inland Revenue Service, FIRS anticipated increase of 57% in revenue generation compared to the previous year.
The government is expecting 9.96 trillion nairas in tax revenue from oil and 9.45 trillion nairas in non-oil revenue, as per the report.
FIRS has planned to perform internal reallocation from oil to non-oil, considering the significant increase of 214% in the budget oil revenue for 2024 compared to 2023 actual, while non-oil revenue was only increased by 3%.
President Bola Ahmed Tinubu had appointed a Presidential Committee on Fiscal Policy and Tax Reforms led by Taiwo Oyedele in July last year to enhance revenue collection,.
Furthermore, the Federal Inland Revenue Service achieved a record tax revenue collection of 5.5 trillion nairas in the first six months of 2023, positioning the agency well to exceed its collection target of 10.1 trillion nairas for 2022.
The ambitious revenue target is likely to involve a multifaceted strategy, including efforts to broaden the tax base, improve tax compliance, and introduce measures that stimulate economic activities. FIRS may also explore innovative approaches to tax administration and enforcement to achieve the set goal.
Achieving a 57% increase in tax revenue requires collaboration between the tax authority, businesses, and other stakeholders. The government’s commitment to fiscal responsibility and economic development is intertwined with the success of initiatives aimed at optimizing revenue collection.
The success of FIRS in achieving the N19.4 trillion revenue target will not only depend on effective implementation but also on the overall economic environment. Economic growth, investment climate, and business activities play pivotal roles in determining the feasibility of revenue targets set by tax authorities.
