...Adedeji describes 2024 performance historic
Following its remarkable performance of generating N21.6 trillion in 2024, the Federal Government has scaled up the Federal Inland Revenue Service (FIRS) target to N25.2 trillion in the 2025 fiscal year.
The Executive Chairman of the Service, Dr Zacchus Adedeji confirmed the target on Thursday in Abuja, adding just like the immediate past year in which, the service realized N21.6 trillion above the N19.4 trillion goal, the Service shall consolidate on the 2024 record.
The FIRS boss described the 2024 performance as a landmark moment in Nigeria’s tax administration history.
“The year 2024 was pivotal in laying a solid foundation for transforming the Federal Inland Revenue Service into a globally recognized, efficient, and trusted revenue authority. It marked a period of strategic growth, positioning the Service as a cornerstone of Nigeria’s economic progress,” he stated.
For the year 2025, Adedeji harped on sustained momentum, strategic reforms, and institutional consolidation. He noted that the Service is committed to achieving long-term resilience and operational excellence, with a focus on three key pillars: capacity building and training, infrastructure and facility enhancement, and technological advancement.
“This year, our mission is both ambitious and transformative: to build a service of excellence defined by the expertise of our people, the modernization of our facilities, and the innovative use of technology to enhance our processes. This mission is not just about sustaining our success but about consistently elevating our impact and solidifying our position as a model revenue authority on the global stage.”
Speaking about the tax revenue performance over the years, the Coordinating Director of the Large Taxpayers Group, Amina Ado, attributed the sustained growth in tax collections to a combination of administrative reforms, policy adjustments, and macroeconomic factors.
She noted several major administrative reforms, including the automation of tax processes, the introduction of the TaxProMax platform, the use of third-party data for intelligence gathering, expanded application of Withholding Tax (WHT), improved debt collection strategies, and extensive organizational restructuring.
Policy reforms also played a significant role, with measures such as an increase in the Value Added Tax (VAT) rate, adjustments to Education Tax rates, and improvements in tax laws through the enactment of Finance Acts. Additionally, macroeconomic factors—such as fluctuations in the exchange rate and inflation—contributed to the revenue surge.
Ado noted that significant shifts in tax revenue growth were recorded in 2022 and 2024, largely driven by a combination of administrative and policy reforms alongside changing economic conditions.
The performance across various tax categories in 2024 revealed remarkable growth: under Company Income Tax (CIT), the expiration of tax exemptions on Treasury Bills and Corporate Bonds, the removal of the 10 per cent investment allowance, and improved remittances from government entities all contributed to higher CIT collections.
Education Tax (EDT), the implementation of a three per cent EDT rate and exchange rate fluctuations helped increase revenue. Value Added Tax (VAT) through increased application of Withholding Tax (WHT) on both local and international transactions, coupled with higher consumer spending, led to improved VAT collections.
In the case of Stamp Duties (SD), debt collection efforts intensified, and government receipts increased, leading to substantial revenue growth. The recognition of 2023 tax liabilities in 2024, higher compliance levels, and exchange rate influences contributed to increased collections under the NASENI/PTF Levies.
Comparing 2023 and 2024, all tax types recorded significant improvements. Oil-related tax revenue grew by 35 per cent, while non-oil tax collections surged by 97 per cent. Overall, total tax revenue increased by an impressive 76 per cent.
Under the Stamp Duties category, the volume of transactions grew by 16 per cent, while revenue collections soared by 149 per cent. Similarly, the integration of tax offices and the conclusion of audit cases resulted in a 62 per cent increase in assessments and an 83 per cent rise in tax collections. Notably, the FIRS’ debt recovery efforts in 2024 yielded a 119 per cent improvement compared to the previous year.
With an N25.2 trillion revenue target for 2025, the FIRS is setting its sights on even greater efficiency and innovation in tax collection. The Service intends to consolidate past achievements by reinforcing its workforce through enhanced capacity-building programmes, upgrading its technological infrastructure, and strengthening its institutional framework to ensure sustained compliance and efficiency in tax administration.
Dr Adedeji guaranteed the commitment of the FIRS to meeting and surpassing expectations, ensuring that tax revenue remains a critical driver of Nigeria’s economic stability and growth. “As we step confidently into 2025, we must carry forward the momentum of these achievements with renewed energy, a clear vision, and a meticulously designed roadmap,” he stated.
