The National Assembly has set a revenue target of N25 trillion for the Federal Inland Revenue Service (FIRS) for the 2025 financial year.
The Joint Committee on Finance of both houses announced this on Wednesday during the defense session of the 2025 budget for Ministries, Departments and Agencies (MDA) of the Federal Government.
The Executive Chairman of FIRS, Mr. Zacch Adedeji, led his team to the session with the legislators. Senator Sani Musa, representing Niger East and Chairman of the Joint Committee, said the N25 trillion target is achievable.
He said: “FIRS should work towards the projected revenue target of N25 trillion set for 2025. It is achievable and beatable.”
Members of the Committee commended the FIRS for surpassing its 2024 revenue collection target of N19.4 trillion by raising N21.6 trillion.
The Deputy Chairman of the House of Representatives Committee on Finance, Honorable Saidu Musa Abdullahi, described this performance as unprecedented.
He said: “The feat achieved by FIRS in revenue collection by 2024 is unprecedented and highly commendable. Exceeding the N19.4 trillion target set in the 2024 Appropriation Bill to reach N21.6 trillion is very encouraging.”
Honorable Abdullahi noted that South Africa, with a smaller population of 45 to 54 million compared to Nigeria's over 200 million, generates greater revenue through tax collection. He urged Mr Adedeji to study South Africa's tax collection model.
“We will give them full support for their tax reforms, but more taxable citizens from the informal sector need to be brought into the tax net,” he added.
Senator Joel-Onowakpo Thomas, representing Delta South, advised the FIRS Chairman to redouble his efforts and deepen the tax collection process through planned reforms. Unlike his colleagues, he suggested a revenue target of N30 trillion by 2025.
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Senator Binos Yeroe, representing Adamawa South, commended the agency for the initiatives and innovations that helped it exceed its 2024 tax collection target.
“His performance in 2024 was very commendable. Keep it up,” he said.
The Honorable Etanabene Benedict also praised the FIRS and emphasized the importance of strong tax collection to reduce dependence on debt for budget financing.
“If we excel at collecting taxes and generating revenue, we will not need to borrow to finance our budget. Considering the achievement of FIRS in 2024, I urge this committee to project N60 trillion in tax collection or revenue generation by 2025,” he concluded.
Newslodge