Nigeria forecasts record $9.5bn of taxes in second half of 2023
Nigeria forecast it will raise 7.5 trillion naira ($9.5 billion) in taxes in the second half, after a record performance in the first six months of the year, as the government improves its collection processes, the head of the Federal Inland Revenue Service said.
The West African nation’s government collected 5.5 trillion naira in the first half, surpassing the 5.3 trillion-naira target set by the government for the period, FIRS Executive Chairman Muhammad Nami told reporters in the capital, Abuja, on Thursday. It raised 10.1 trillion naira of taxes last year and set a target to raise 25 trillion naira in 2024.
“This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT-filing processes, as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy,” Nami said.
Revenue collection from the non-oil sector contributed 69% of the total, according to the FIRS. Tax collections totaled 1.65 trillion naira in June alone — the highest amount collected in any single month, Nami said.
“This is a good head start as we work toward meeting our target for the year, despite stubborn headwinds such as the impact of the currency redesign and 2023 general elections on the economy in the first and second quarters of 2023,” he said. “We believe that the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes and positive impact of current government’s policies on the economy.”
Total government revenue more than doubled to 1.9 trillion naira in June, President Bola Tinubu’s office said in an emailed statement. Of that amount, 590 billion naira will be transferred to an Infrastructure Support Fund as part of measures to offset the impact of the government’s decision to remove fuel subsidies, he said.
