The Federal Inland Revenue Service (FIRS) has generated a record N6.4 trillion as revenue in 2021, the highest in its history.
Despite the global economic challenges occasioned by the Coronavirus pandemic, as well as the disruption of business activities in 2020 by nationwide protests, the Federal Inland Revenue Service (FIRS) achieved over a hundred percent of its collection target for the year 2021.
“Notwithstanding the limitations faced in 2020/2021, the Service achieved over a hundred percent of its collection target,” Executive Chairman, Muhammad Nami stated in the FIRS 2021 Performance Update signed by him.
Spokesman to FIRS Chairman, Oluwatobi Wojuola, who disclosed this via a statement issued on Thursday said that despite the limitations faced in 2020 and 2021, the service achieved over 100 percent 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,” Nami said.
“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 69 percent of the total collection in the year, while oil sector’s contribution was 31 percent of the total collection.
“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.”
Wojuola stated that in line with the law, 2021 income tax revenue was 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 End-SARS protests.”
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