Analyst Praises FIRS Boss As Agency Surpasses Revenue Target in Q1 2024
- FIRS exceeded its first-quarter revenue target for 2024, and the achievement has not gone unnoticed
- Analysts have praised the accomplishment and credited it to FIRS Chairman Zacch Adedeji, who assumed office in July 2023
- Upon taking office, Adedeji promised to increase Nigeria's average tax-to-GDP ratio to 18%, higher than the African average of 16%
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Federal Inland Revenue Service (FIRS) has exceeded its revenue target for the first quarter of 2024, drawing praise from analyst who credited the achievement to FIRS Chairman Zacch Adedeji's approach.
Source: Facebook
The tax agency reported a collection of N3.94 trillion in the first quarter of 2024, reflecting a 56% increase compared to the same period in 2023.
Adedeji, who took office in September 2023, had promised to implement strategic reforms driven by technology.
His predecessor, Mohammad Nami, achieved a 10.86% tax-to-GDP ratio. In his inaugural address as chairman, Adedeji set a target of 16.5% within three years.
He declared:
"For those who deviate from their tax obligations, rest assured, we will enforce our responsibilities judiciously."
Analyst assesses Adedeji one year as FIRS boss
Adedeji's efforts to boost government revenue have not gone unnoticed.
Policy analyst Arabinrin Aderonke has praised the FIRS boss's vision, describing it as a focused, transparent, efficient, and people-centred tax administration.
She said it has been remarkable financially in a statement made available to Legit.ng, which assessed the FIRS boss’s 365 days in office.
According to Atoyebi, the push for innovation has also been pivotal to the introduction of nine new modules into the TaxProMax system, automating over 80% of previously manual processes.
Her words:
"To achieve this, he introduced several transformative measures, including a complete restructuring of the FIRS, making the agency more cohesive, adaptable, and driven by technology. A critical step was adopting a data-driven approach, which streamlined tax operations and enhanced transparency.
"Adedeji also placed significant emphasis on employee welfare, understanding that a motivated workforce is crucial to achieving organisational success. By improving the working conditions and compensation of FIRS staff, he boosted morale, resulting in increased efficiency.
The policy analyst also pointed out that launching the Anti-Corruption and Transparency Unit (ACTU) in collaboration with the Independent Corrupt Practices Commission (ICPC) underscores his commitment to integrity in tax administration.
Atoyebi stated:
"Another noteworthy achievement is Adedeji's leadership of the National Single Window Project (NSWP), a digital platform to transform Nigeria's trade sector by simplifying import and export activities. These initiatives have set the stage for sustained growth and a fairer tax system.
"As Adedeji enters his second year in office, his reforms suggest a future where Nigeria's tax system continues to thrive, aligned with President Tinubu's mandate for renewed hope. His achievements have reinforced his reputation as a leader poised to drive Nigeria's economy forward through innovation and integrity."
Farmers, SMEs to stop paying withholding tax - FG
Meanwhile, to lessen the tax burden on enterprises, the federal government recently approved exempting manufacturers, farmers, and small businesses from paying withholding tax.
Important modifications to the previous tax system were also implemented, including lower rates for companies with narrow profit margins and steps to prevent tax cheating.
Taiwo Oyedele, the chairman of the presidential committee on Fiscal Policy and Tax Reforms, made the announcement.
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Source: Legit.ng
