Federal Government Sets Tax Revenue Target Of N19.4 Trillion For 2024

The federal government has set an N19.4 trillion target for generating tax revenue in 2024, indicating a significant increase compared to the previous year's collection of N12.37 trillion by the Federal Inland Revenue Service (FIRS). This boost in targets is notable considering that the goal for 2023 was set at only N10.7 trillion.

FIRS chairman Zacch Adedeji said that the newly set target is achievable for the government because of the viable economic environment for businesses and the effective tax collection system.

"What determines whatever we have comes from micro-economic indices because when the economy runs well, we are going to be taxing prosperity, not poverty," Adedeji said, according to Punch.

"We will focus on the fruits and not the seeds. We need to ensure we have a viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection," he added.

Adedeji noted that his agency is not a revenue-generating but a revenue-collection agency. However, with President Bola Tinubu-led administration reforms, the businesses are all set to grow and prosper this year.

Amina Ado, one of the agency's coordinating directors, said that the oil revenue tax collection was N3.17 trillion, which is 25.6% of the total revenue while the non-oil revenue was recorded at N9.2 trillion.

Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, disclosed the revenue target of 2024 on Wednesday during the opening of a two-day strategic management retreat of the agency held at the Congress Hall of Transcorp Hilton Hotel in Abuja.

Nigeria's Minister of Finance and Coordinating Minister of the Economy Wale Edun emphasized that there is a need to increase the tax revenue compared to other African countries.

Edun praised the FIRS chairman and the rest of his team for setting the target right at the beginning of the year so that the required strategy could be implemented for increasing the tax revenue.

"Tax revenue in Nigeria is low. The collection level should be much higher as we have seen in other African countries not to talk of the developed countries. It is at 10 percent of the Gross Domestic Product (GDP) when at the highest level, it goes around 55 percent," the minister said.

However, he appreciated the fact that Nigeria surpassed its financial target last year.