Nigeria: FIRS Confident in Achieving N19.4 Trillion Revenue Target, Says Chairman

The Federal Inland Revenue Service (FIRS) is on track to meet its ambitious N19.4 trillion revenue target for the year, according to its Executive Chairman, Zacch Adedeji. Speaking on Saturday in Lagos during a stakeholder engagement with the Senate and House Committee on Finance, Adedeji expressed optimism about achieving the target set at the beginning of the year.

“At the start of the year, we set a target of N19.4 trillion and outlined our plans to achieve it. Now, in August, with three-quarters of the year behind us, I can confidently say, by the grace of Almighty God, that we are on course to meet this goal. With eight months gone, we believe that achieving N19.4 trillion is within reach,” Adedeji stated.

Earlier this year, FIRS set a revenue collection target of N19.4 trillion after exceeding its 2023 target by 107%, marking a significant 56.9% increase from the previous year’s revenue and a 67.91% increase from the prior year’s target.

Adedeji also highlighted the need for legislative support in modernizing Nigeria’s tax laws, particularly concerning the burgeoning cryptocurrency industry and the outdated Stamp Duty Act.

“The first step is to establish laws that regulate emerging sectors, which is why we are here with the legislature. This is essential for setting a legal basis for taxation, especially for innovations like cryptocurrency. As we stand today, there is no law in Nigeria regulating cryptocurrency operations, but we cannot ignore this sector. We must plan to regulate it in a way that supports Nigeria’s economic development,” Adedeji said.

He further informed the lawmakers of a proposed bill aimed at overhauling Nigeria’s revenue administration system. This bill, expected to be introduced in September, will focus on harmonizing, updating, and simplifying existing tax laws. Adedeji cited the Stamp Duty Act, enacted in 1939, as an example of legislation in dire need of modernization to reflect the realities of the digital age.

“Back in 1939, when the Stamp Duty Act was passed, the internet didn’t exist, and neither did the current state structure of Nigeria. Updating this law is one of the reasons President Bola Tinubu established the Taiwo Oyedele-led Fiscal Policy and Tax Reform Committee,” he explained.

The chairman emphasized the importance of regulating cryptocurrency in a manner that fosters economic growth, noting the recent scrutiny of cryptocurrency platforms following the Nigerian government’s allegations against Binance for manipulating the naira-to-dollar exchange rate. Nigeria recently imposed a 7.5% value-added tax (VAT) on crypto transaction fees, a move announced by KuCoin, a cryptocurrency exchange, which began collecting VAT on July 8, 2024.

The Central Bank of Nigeria (CBN) lifted its ban on banks operating accounts for crypto service providers at the end of 2023, signaling a more open yet regulated approach to the industry, which was well-received by local crypto users.

Adedeji also thanked the National Assembly members for their support of the windfall tax, which he said would enhance FIRS’s ability to meet its revenue targets and ensure fair wealth distribution.

In his remarks, the Chairman of the Senate Committee on Finance, Sani Musa, underscored the need for the FIRS to embrace innovation as the global and Nigerian economies evolve. He emphasized the importance of transparency, accountability, and innovation in revenue generation efforts.

“As the global economy evolves and our economic landscape transforms, it is crucial to assess and realign the FIRS to meet these new realities. This means adopting best practices and fostering an environment where transparency, accountability, and innovation are at the forefront of revenue generation,” Musa stated.

The Chairman of the House Committee on Finance, James Faleke, represented by Kalejaiye Paul, commended the FIRS for its professionalism and pledged continued collaboration.

“I commend the civility and professionalism with which the FIRS carries out its responsibilities, especially in these challenging times. Despite the hardships in our society, we must contribute to rebuilding Nigeria. I pledge, on behalf of the House of Representatives, that we will always support and collaborate with you in moving Nigeria forward,” Faleke said.