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FIRS Beats 2021 Revenue Target, Generates N6.405trn

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The Federal Inland Revenue Service (FIRS) on Thursday disclosed that it garnered ₦2.008 trillion from oil and ₦4.396 trillion from the non-oil sector which made it surpass its target of ₦6.401 trillion in 2021 revenue.

According to FIRS, it gathered ₦6.405 trillion in the 2021 revenue.

The Special Assistant to the Executive Chairman, Media & Communication, Johannes Oluwatobi Wojuola disclosed this in a statement released on Thursday.

He stated that the target was achieved in spite of the global economic challenges caused by the outbreak of coronavirus, as well as the disruption of business activ­ities in 2020 by nationwide protests.

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The Executive Chairman, Muhammad Nami, stated in the FIRS 2021 Performance Update signed by him, “Notwithstanding the lim­itations faced in 2020/2021, the Service achieved over a hun­dred per cent of its collection target.

“The FIRS, in the year 2021 collected a total of N6.405 tril­lion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion. Companies In­come Tax amounted to N1.896 trillion; Petroleum Profits Tax amounted to N2 trillion; Value Added Tax amounted to N2.07 trillion; Electronic Money Transfer Levy amounted to N114 billion; Earmarked Tax­es amounted to N208.8 billion; among others.

“Non-oil sector contributed 68.64% of the total collection in the year, while oil sector’s contribution was 31.36% of the total collection.

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“The Service issued certif­icates for the sum of N147.8 billion tax credit to private investors and NNPC for road infrastructure under the Road Infrastructure Development Refurbishment Investment Tax Credit Scheme created by Executive Order No. 007 of 2019.”

According to the agency’s spokesman, the report ex­plained that “in line with the law, 2021 income tax revenue is a function of the outcome of business activities in 2020.

“In that year, the country entered into a second eco­nomic recession within 5 years. The recession was oc­casioned by 5 months of lock­down caused by the coronavi­rus pandemic. To compound the economic challenges of COVID-19 pandemic, business activities were disrupted by the EndSARS protests.”

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It further stated that the deployment of technological tools was a game-changer for the Service.

“Upon the coming into office of the current manage­ment, the Federal Inland Rev­enue Service (FIRS) began strategic administrative and operational reforms; and the implementation of new poli­cies that would improve its ca­pacity towards the fulfilment of its mandate.

“The deployment of a new automated tax administration system, the ‘TaxPro Max’ in June 2021 was a game-chang­er. With the solution, taxpay­ers experienced the ease of reg­istration, reporting, payment and issuance of tax clearance certificates while the Service experienced greater efficiency in the deployment of resourc­es thereby leading to improved revenue collection.”