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The Federal Inland Revenue Service (FIRS) has revealed its efforts to significantly boost Nigeria’s tax-to-Gross Domestic Product (GDP) ratio, aiming to raise it from 6.0 percent to 10.86 percent in 2022 through a series of reforms.
During the Lagos Mainland West region’s sensitization program, Mrs. Saidatu Yero, Director of Taxpayer Services at FIRS in Abuja, made this announcement. She further outlined the agency’s ambitious goals, stating, “Management is committed to improving the country’s tax-to-GDP ratio to 16.5 percent, which aligns with Africa’s average, and subsequently reaching 18 percent within the next three years.”
Mrs. Yero emphasized the positive impact of recent reforms, noting that these changes have transformed tax administration in Nigeria and led to increased revenue collection for the government. As of September 14, 2023, FIRS reported generating N8.5 trillion in revenue and set an even more ambitious target of N12 trillion for 2023.
Highlighting FIRS’s commitment to being “customer-centric,” she stressed the importance of keeping taxpayers informed, sensitized, engaged, and educated about their tax obligations and rights.
Mr. Temitayo Orebajo, Director of the Tax Policy and Advisory Department at FIRS, provided insights into the 2023 Finance Act’s role as an innovation in the Nigerian tax system. This Act introduced amendments to seven tax laws, four non-tax laws, and 30 sections, further strengthening Nigeria’s tax framework.
FIRS’s dedication to improving Nigeria’s tax collection and the tax-to-GDP ratio demonstrates its efforts to enhance revenue mobilization for national development.
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