Federal Inland Revenue Service (FIRS) has disclosed that it collected N4,952,243,711,728.37 in total tax revenue in the year 2020.
It interpreted this amount as representing approximately 98 per cent of the national tax target of N5.076 trillion set it for the year.
A statement from FIRS Director Communications and Liaison, Abdullahi Ismaila Ahmad, quoted the executive chairman of the agency, Mr Muhammad Nami, as saying that the achievement was more remarkable when placed against the backdrop of the debilitating effects of COVID-19 on the Nigerian economy; the all-time low price of crude oil in the international market; business disruptions and lootings during the #EndSars protests.
Other negative atmosphere in 2020 were; generous tax waivers granted by the FIRS to ease the impact of the COVID-19 shutdown; additional tax exemptions granted to small companies in the 2019 Finance Act; and insecurity in some parts of the country.
Nami also cited the price of oil hitting an all-time low. In other words, oil which used to contribute over 50% in tax returns through the Petroleum Profits Tax in previous years, accounted for only 30.6 per cent contribution to the tax revenue generated in 2020.
The statement added that non-oil tax collection in 2020 was 109 per cent.
He attributed the FIRS revenue generation success in 2020 to a number of reforms initiated by the Board and Management of the Service under his leadership.
“The Executive Chairman added: “The FIRS is optimistic this current fiscal year 2021 will be better than 2020.
“We shall perform exceedingly well given that our Service reforms are expected to yield greater dividends, especially as different parts of tax administration are being automated.”
