Nigeria's Federal Inland Revenue Service (FIRS) reported a total tax revenue collection of N5.5 trillion from January to June 2023.
According to a Thursday statement by the Special Assistant to the Executive Chairman on Media and Communication, FIRS, Johannes Oluwatobi Wojuola, this is the largest tax revenue collection ever recorded by the Service in the first six months of a fiscal year.
The FIRS Executive Chairman, Muhammad Nami, was alleged to have made the announcement while presenting the National Economic Council's 2023-2024 tax revenue projection on Thursday at the Presidential Villa in Abuja.
The presentation, which included the FIRS' 2023 Half-Year Collection Report, revealed that the FIRS exceeded its aim for the first half of the year by more than 100 percent, compared to a mid-year target of N5.3 trillion.
The study states that, from January to June 2023, tax income from the oil industry was collected at N2.03 trillion, falling short of the aim of N2.3 trillion, while tax revenue from non-oil sources was collected at N3.76 trillion, exceeding the target of N2.98 trillion.
In his presentation, Mr. Nami also mentioned that in June 2023, the Service received a total of N1.65 trillion in tax revenues. This amount is the Service's biggest monthly tax income collection to date.
“This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023”, Mr. Nami stated.
“This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes; as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy,” the executive chairman added.
The FIRS Executive Chairman assured the nation that "better days ahead" in terms of tax revenue collection while discussing the prospects for the second half of the year.
“We believe that the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes and positive impact of current government’s policies on the economy,” he further disclosed.
Recall that the Service collected N10.1 trillion in total in 2022, which was the greatest amount of taxes the FIRS had ever collected in a single year.