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The Federal Inland Revenue Service (FIRS) has announced its goal of generating N25.2 trillion in revenue by 2025, an increase from the N21.6 trillion it collected in 2024.
This information was shared by FIRS Executive Chairman, Dr. Zacch Adedeji, who highlighted the ongoing challenge of meeting the rising demand for enhanced tax revenue collection by governments at all levels, particularly as the direct revenue contributions from certain Ministries, Departments, and Agencies (MDAs) continue to decline.
During a keynote speech at the start of a two-day workshop organized by the Service on “Tax Expenditure and its Effects on Government Revenue,” Adedeji stated that currently, the Service contributes an average of over 60 percent monthly to the Federation Account.
According to Adedeji, who was represented by FIRS Coordinating Director of the Corporate Services Group, Bola Akintola, this achievement can be attributed to various proactive and reformative measures implemented by the Service.
However, he mentioned that the government is losing revenue due to tax incentives, which have been challenging to quantify owing to the lack of available data.
In a presentation titled, “Nigerian Experience in Tax Expenditure Reporting – Achievements and Challenges,” the Head of Tax Expenditure Management, Ikata Oyekuodi John, noted that effective fiscal policy necessitates a balance between offering tax incentives and generating sustainable revenue, underscoring that tax expenditure reporting is a vital tool for evaluating the effectiveness and trade-offs linked to such policies.
