FIRS records 170,000 new taxpayers, 20% increase in compliance

The Federal Inland Revenue Service (FIRS) says the number of new taxpayers in Nigeria has increased by 170,000, and tax compliance has also improved by 20 percent over the past year.

Mr. Femi Olarinde, Special Adviser to the FIRS Executive Chairman, Dr. Zacch Adedeji, made this known during a dinner/media parley on Thursday in Lagos.

Supreme News reports that the total number of taxpayers in the country as of 2021 was 41 million.

Olarinde attributed these successes to the leadership of Dr. Adedeji.

He noted that the increase in the number of taxpayers was due to the emergence of more businesses, companies, and industries in the country.

According to Olarinde, the new FIRS leadership has also simplified tax processes and payments nationwide, making them more convenient and reducing the cost of compliance and administration.

He 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.

“Before now, we used to have the Tax Duty and Value Added Offices, among others.

“Taxpayers had to visit different offices to fulfil their tax obligations. Presently, there is no need to go to our offices; with the click of a button, one can complete all tax payment affairs.”

Regarding figures, Olarinde said that FIRS generated N12.3 trillion in revenue in 2023, exceeding the government’s target of N11.5 trillion by 107 percent.

He also said that for 2024, the government set a target of N19.4 trillion for FIRS.

However, he acknowledged the target as a herculean task but said it was achievable.

“As of the first quarter of this year, ending March 31, we have already collected 81 percent of what is expected for the quarter, despite the first quarter being an off-peak period for tax payment.

“Specifically, in the first quarter of 2024, FIRS collected N3.94 trillion, which is N1.42 trillion, or 56 percent 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 the collation of figures for the second quarter is ongoing,” Olarinde noted.

According to Olarinde, FIRS resolved 3,148 complaints in the first quarter of the year, reducing the number of complaints by 18 percent.

He further stated that the key strategic drivers of the revenue service focus on people, technology, and processes.

Oderinde stressed that the rationale for the FIRS restructuring was to be effective and cohesive while synchronising all its services into a simple process.

“We are revolutionising the tax office into a one-stop shop to reduce the cost of administration and compliance.

“We have improved customer satisfaction by over 70 percent by being customer-centric, offering personalised services, and enhancing tax education.

“FIRS is now data-driven, which is key to maintaining good tax records, transparency, and accountability,” he added.

He explained that the FIRS remained committed to fair tax administration through responsive and accessible services to optimise revenue for national development.

According to him, the principles of taxation are equity, fairness, and ensuring all taxpayers are treated equally and have access to the same services.

The special adviser said that the vision of FIRS was to become the world’s most efficient and trusted revenue service.

Olarinde also highlighted the launch of the National Single Window initiative, which aims to spur economic growth and provide business enterprises with effortless access to the global market.

He said that the initiative facilitates fast and easy operations at the nation’s ports while harmonising and improving government revenue.

The FIRS official noted that it was expected to enhance the tax compliance of international shipping companies lifting crude oil in Nigeria.

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.