The Federal Government has tasked the Federal Inland Revenue Service (FIRS) with generating N25.2 trillion in tax revenue for the 2025 fiscal year. This ambitious target follows the agency’s record-breaking performance in 2024, when it collected N21.6 trillion—exceeding its N19.4 trillion goal.
Executive Chairman of the FIRS, Dr. Zacch Adedeji, described the 2024 revenue performance as a milestone in Nigeria’s tax administration.
“The year 2024 was pivotal in laying the foundation for transforming the Federal Inland Revenue Service into a globally recognized, efficient, and trusted revenue authority. It marked a period of strategic growth, positioning the Service as a cornerstone of Nigeria’s economic progress,” he said.
Adedeji emphasized the importance of sustaining momentum through strategic reforms and institutional consolidation. He highlighted the agency’s commitment to long-term resilience and operational excellence, built on three key pillars: capacity building and training, infrastructure enhancement, and technological advancement.
“This year, our mission is both ambitious and transformative: to build a service of excellence defined by the expertise of our people, the modernization of our facilities, and the innovative use of technology to enhance our processes. Our focus is not just on sustaining our success but consistently elevating our impact to become a model revenue authority globally,” he added.
Providing insight into Nigeria’s tax revenue performance, Amina Ado, Coordinating Director of the Large Taxpayers Group, attributed the sustained growth to administrative reforms, policy adjustments, and macroeconomic factors.
Among the major administrative reforms were automation of tax processes, the introduction of the TaxProMax platform, the use of third-party data for intelligence gathering, the expanded application of Withholding Tax (WHT), enhanced debt collection strategies, and extensive organizational restructuring.
Policy reforms also played a crucial role, including an increase in the Value Added Tax (VAT) rate, adjustments to Education Tax rates, and amendments to tax laws through the enactment of Finance Acts. Additionally, macroeconomic factors such as exchange rate fluctuations and inflation contributed to the revenue surge.
In 2024, tax revenue growth was significant across various categories. Company Income Tax (CIT) collections increased due to the expiration of tax exemptions on Treasury Bills and Corporate Bonds, the removal of the 10% investment allowance, and improved remittances from government entities. Education Tax (EDT) revenue rose following the implementation of a 3% EDT rate and exchange rate fluctuations. Value Added Tax (VAT) collection improved with the expanded application of WHT on local and international transactions and higher consumer spending. Stamp Duties (SD) revenue saw substantial growth due to intensified debt collection efforts and increased government receipts. The NASENI/PTF Levies also recorded higher collections due to the recognition of 2023 tax liabilities in 2024, improved compliance, and exchange rate influences.
Comparing 2023 and 2024, all tax categories recorded remarkable improvements. Oil-related tax revenue grew by 35%, while non-oil tax collections surged by 97%. Overall, total tax revenue increased by 76%. Stamp Duties transaction volumes grew by 16%, while revenue collections surged by 149%. Tax assessments increased by 62%, and tax collections rose by 83% due to the integration of tax offices and the resolution of audit cases. Additionally, FIRS’ debt recovery efforts in 2024 yielded a 119% improvement compared to the previous year.
With a revenue target of N25.2 trillion for 2025, the FIRS aims to enhance efficiency and innovation in tax collection. The agency plans to strengthen its workforce through capacity-building programs, upgrade its technological infrastructure, and reinforce its institutional framework to improve compliance and efficiency.
Adedeji reaffirmed the FIRS’ commitment to exceeding expectations and ensuring that tax revenue remains a key driver of Nigeria’s economic stability and growth.
“As we step into 2025, we must carry forward the momentum of these achievements with renewed energy, a clear vision, and a well-defined roadmap,” he stated.
