By Executive Chairman, Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, on Wednesday disclosed that the service generated a total of N3.94 trillion in tax revenue in the first quarter of the year (Q1 2024).
The performance however, fell short of its quarterly revenue target of N4.8 trillion.
Adedeji gave the figures while receiving the leadership of the Chartered Risk Management Institute of Nigeria (CRMI) of Nigeria, led by its President/Chairman, Governing Council, Dr. Ezekiel Oseni, on a courtesy visit to the FIRS Headquarters in Abuja.
He said the performance in Q1 represented 56.7 percent increase over the figure recorded in the corresponding quarter of 2023.
Represented at the meeting by his Chief of Staff, Mr. Tayo Koleosho, Adedeji said the service under his watch, remained committed to intensifying efforts in the remaining part of the year towards meeting its ambitious N19.4 trillion target for 2024.
He said, “Over the years through the various administrations, the service has maintained its mandate of generating revenue and meeting government’s targets.
“We will continue to make giants stride and we take pride in meeting and surpassing our revenue collection targets for the federation with constant collaboration with stakeholders
“We have resolved to create an environment of growth by removing every obstacle in the way of corporate entities and ensure a tax administration that is friendly, customer-centric and ready to help businesses to bear more fruits.”
He said, “Risk management is something that is not restricted to any particular sector. It is something that has relevance in every sector of the economy, including the government. The bill is about to go, and we are doing a draft on that.
He added that when passed into law, Act would be made compulsory, adding that “what we’re trying to do is to say that when you are taking any decision, you need to assess the risk of that decision. When you want to do a road construction, there are a lot of things you need to look at – weather, soil texture, finance.
“You don’t undertake a project and at the end of the day you don’t have funding to finish it.”
Oseni said part of the reasons for the visit was to invite the FIRS to become its Council member, “just like we have the Central Bank of Nigeria (CBN) and other reputable institutions like the Federal Ministry of Education”.
He said imbibing risk practices would help the service in its mandate of tax administration, as well as impact positively on businesses and economy in general.
Oseni said, “So, with risk management, it would be easier for them to identify the loopholes and also be able to mitigate the risk that could emanate for those loopholes.
“Being a risk management practitioner, it’s necessary for them to embrace risk management in respect of their profession. Even in tax collection, you need to be risk conscious.”
He added that adherence to risk practices will improve revenue by plugging the loopholes that people could take undue advantage of, to either evade tax or avoid tax altogether.
The CIRM boss said, “By the time you identify these loopholes, you’ll be able to see how you can manage them even before you amend the law and be able to minimise, the abuse of these kind of loopholes that tax evaders and people that avoid taxes can take undue advantage of. So, it’s going to help them to improve tax collection.”
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