FG sets N25.2tr revenue goal for FIRS in 2025.

Barbara Bako, Abuja.

Building on its remarkable performance in 2024, the Federal Inland Revenue Service (FIRS) has been entrusted by the federal government to generate N25.2 trillion in 2025.

The Executive Chairman of the FIRS, Dr. Zacch Adedeji, disclosed this on Thursday at the FIRS 2025 management retreat in Abuja

He stated that the Service exceeded its 2024 target of N19.4 trillion, achieving a record-breaking N21.6 trillion in revenue.

The focus for the coming year he said will be on consolidating internal strengths to ensure long-term resilience and operational excellence.

“The FIRS’s mission for 2025 is ambitious: to create a service of excellence characterized by the expertise of its staff, the modernization of its facilities, and the innovative use of technology to improve processes. This mission is not just about sustaining success but consistently enhancing impact and solidifying the FIRS’s position as a model revenue authority globally” he said.

To achieve this, the FIRS has brought out a strategic roadmap centered on three key pillars: Capacity Building and Training, Infrastructure and Facility Enhancement, and Technological Advancement.

These pillars will guide the Service’s efforts to enhance its human capital, upgrade its infrastructure, and leverage technology to streamline operations and improve efficiency.

The Coordinating Director of the Large Taxpayers Group, Amina Ado provided insights into the factors contributing to the FIRS’s revenue performance over the years.

She highlighted sustained growth in collections due to administrative reforms, including automation, the introduction of TaxProMax, the use of third-party data for intelligence, expanded use of withholding tax, improved debt collection, and organizational reforms.

Policy reforms, such as higher VAT and education tax rates, and improvements in tax laws through Finance Acts, also played a significant role.

Macroeconomic factors, including the impact of higher exchange rates and inflation, further contributed to the impressive performance.

She stated significant changes in revenue growth in 2022 and 2024, driven by the combined effects of administrative reforms, policy reforms, and macroeconomic conditions.

In 2024, all non-oil tax types surpassed their targets while Corporate Income Tax (CIT) collections benefited from the sunsetting of tax exemptions on treasury bills and corporate bonds, the removal of the 10% investment allowance, and strengthened remittances from the government.

Education Tax (EDT) was impacted by the implementation of the 3% rate and the exchange rate. Value Added Tax (VAT) collections improved due to enhanced withholding tax, both local (including government) and international, and higher consumption.

Stamp Duty (SD) collections saw improved debt collection and higher receipts from the government and the oil and gas sector. NASENI/PTF collections benefited from the recognition of 2023 revenues in 2024, higher compliance, and the exchange rate.

Comparing 2023 to 2024, all tax types performed better in 2024, Oil taxes increased by 35%, non-oil taxes increased by 97%, and the overall increase was 76%.

Under Stamp Duties, transaction counts increased by 16%, and collections increased by 149%. Integration of tax offices and concluded audit cases increased by 62%, with collections increasing by 83%.

Improvements in debt management and enforcement resulted in a 119% increase in FIRS recoveries in 2024 compared to 2023.