The Federal Inland Revenue Service (FIRS) has reported a significant increase in Nigeria’s tax-to-Gross Domestic Product (GDP) ratio, rising from 6.0 percent to 10.86 percent in 2022.
This achievement was attributed to a series of reforms undertaken by the agency.
Mrs. Saidatu Yero, the Director of Taxpayer Services at FIRS, revealed this information during a sensitization program for the Lagos Mainland West region of FIRS in Lagos.
FIRS sets ambitious targets
She emphasized the commitment of FIRS management to further enhance the country’s tax-to-GDP ratio, aiming for 16.5 percent, which aligns with the African average, and eventually targeting 18 percent within the next three years.
Yero highlighted the commendable reforms implemented by the service, which have reshaped the landscape of tax administration in Nigeria and improved revenue collection for the government.
FIRS also noted that its innovative approaches have already led to the generation of N8.5 trillion as of September 14, 2023, with a steadfast commitment to achieving N12 trillion in 2023.
She further emphasized the agency’s dedication to being “customer-centric” and recognized taxpayers as vital stakeholders in the tax ecosystem.
Ensuring that taxpayers understand their obligations and rights is a priority, and FIRS aims to keep them informed, engaged, and educated to fulfill their tax responsibilities smoothly.
Addressing the theme “The Finance Act as an Innovation to the Nigerian Tax System,” Mr. Temitayo Orebajo, the Director of the Tax Policy and Advisory Department at FIRS, highlighted that the 2023 Finance Act introduced amendments to seven tax laws, four non-tax laws, and 30 sections, further enhancing the Nigerian tax system.