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We Have Achieved 20% Increase in Tax Compliance, Added 170,000 New Taxpayers – FIRS

The Federal Inland Revenue Service (FIRS) has announced a significant increase in tax compliance, recording a 20% improvement and adding 170,000 new taxpayers over the past year.

Mr. Femi Olarinde, Special Adviser to the FIRS Executive Chairman, Dr. Zacch Adedeji, revealed in Lagos that the total number of taxpayers in Nigeria reached 41 million in 2021. Olarinde attributed these successes to the leadership of Dr. Adedeji, noting that the increase in taxpayers was driven by the emergence of more businesses, companies, and industries in the country.

“The new FIRS leadership has simplified tax processes and payments nationwide, making them more convenient and reducing the cost of compliance and administration,” Olarinde said. “We are aware that parting with money is not easy for anybody, so we must make it as easy as possible for people to part with it.”

Previously, taxpayers had to visit different offices to fulfill their obligations, such as the Tax Duty and Value Added Offices. However, the current system allows taxpayers to complete all tax payment affairs online with the click of a button.

Regarding revenue figures, Olarinde reported that FIRS generated N12.3 trillion in revenue in 2023, exceeding the government’s target of N11.5 trillion by 107%. The government has set a target of N19.4 trillion for FIRS in 2024, which Olarinde acknowledged as a challenging but achievable goal.

“As of the first quarter of this year, ending March 31, we have already collected 81% of what is expected for the quarter, despite the first quarter being an off-peak period for tax payment,” Olarinde noted. “In the first quarter of 2024, FIRS collected N3.94 trillion, which is N1.42 trillion or 56% higher than the N2.52 trillion generated in the first quarter of the previous year. June is normally the peak period for tax collection, and collation of figures for the second quarter is ongoing.”

Olarinde also highlighted that FIRS resolved 3,148 complaints in the first quarter of the year, reducing the number of complaints by 18%.

Key strategic drivers for FIRS include a focus on people, technology, and processes. The restructuring aims to make FIRS more effective and cohesive, synchronizing all services into a simple process.

“We are revolutionizing the tax office into a one-stop shop to reduce the cost of administration and compliance,” Olarinde stated. “We have improved customer satisfaction by over 70% by being customer-centric, offering personalized services, and enhancing tax education. FIRS is now data-driven, which is key to maintaining good tax records, transparency, and accountability.”

FIRS remains committed to fair tax administration through responsive and accessible services to optimize revenue for national development. According to Olarinde, the principles of taxation are equity, fairness, and ensuring all taxpayers are treated equally and have access to the same services.

The vision of FIRS is to become the world’s most efficient and trusted revenue service. Olarinde also highlighted the launch of the National Single Window initiative, aimed at spurring economic growth and providing business enterprises with effortless access to the global market. This initiative is expected to enhance the tax compliance of international shipping companies lifting crude oil in Nigeria by facilitating fast and easy operations at the nation’s ports while harmonizing and improving government revenue.

Other FIRS officials at the event included Mr. Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman; Mr. Sikiru Akinola, Technical Assistant on Media to the FIRS Chairman; and Ms. Dapo Awolowo, Head of Media Support Staff of FIRS.

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