The National Assembly, on Wednesday, set an ambitious target of N25 trillion in revenue collection for the 2025 fiscal year for the Federal Inland Revenue Service FIRS.
The giant leap, given at a landmark session of the NASS, was inspired by the report presented by the FIRS team led by its Executive Chairman, Mr. Zach Adedeji, in which he reported a record-breaking revenue collection of N21.6 trillion in 2024.
The collection surpassed its target of N19.4 trillion as outlined in the 2024 Appropriation Act.
The report by the FIRS boss received loud applause from members of the Joint Finance Committee of the National Assembly who felt that having exceeded its 2024 revenue target so easily, it could do more with higher collection in the current year.
Commending the FIRS, Deputy Chairman of the House Committee on Finance, Saidu Musa Abdullahi, applauded the service’s performance, describing it as “unprecedented” and a “very wonderful achievement.”
“Surpassing the revenue collection target from N19.4 trillion to N21.6 trillion in 2024 is a feat worthy of commendation,” he said.
An elated Abdullahi also urged the FIRS to explore South Africa’s tax collection model, observing that despite the country’s smaller population of about 54 million, it generates more tax revenue than Nigeria, a far larger country with a population of about 230 million.
Maker underscored the need to widen the tax net by including more individuals and businesses from the informal sector. Several lawmakers echoed the same sentiment.
Senator Joel-Onowakpo Thomas (Delta South), while praising the FIRS’s 2024 accomplishments, called for a more ambitious target for 2025, suggesting a N30 trillion revenue target.
“Taxes are the way to go globally, he declared. “We must deepen the tax collection process through planned reforms.”
Another lawmaker, Etanabene Benedict, suggested even a much higher leap to N60 trillion, arguing that robust tax collection would reduce Nigeria’s reliance on borrowing to fund the budget.
At the end of the day, the Joint Finance Committee of the National Assembly settled for a more realistic target of N25 trillion for the 2025 fiscal year.
The federal lawmakers pledged rock solid support for FIRS’s tax reform initiatives, emphasizing the importance of innovative strategies to sustain and exceed current revenue levels.
Commending the FIRS boss for what he termed as Adedeji’s innovative approach, Senator Binos Yeroe (Adamawa South) urged him to maintain the momentum.
“Your performance in 2024 was highly commendable,” Yeroe said. “I urge you to keep it up.”
United by their conviction, the committee chairpersons, Senator Sani Musa and Hon. James Faleke, tasked the FIRS to see the set target of N25 trillion as achievable and, even surpassable.
“Work with the N25 trillion projected revenue set for 2025,” Senator Musa stated. “It is achievable and even surpassable.”