The National Assembly has raised the revenue target for the Federal Inland Revenue Service (FIRS) after Executive Chairman Zacch Adedeji revealed that it had exceeded its 2024 revenue target, surpassing the ₦19.4 trillion goal set in the 2024 Appropriation Act.
During a presentation on Wednesday, Adedeji highlighted the agency’s performance and future projections, prompting the National Assembly’s joint Committee on Finance to propose a ₦25 trillion target for the 2025 fiscal year.
Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saidu Musa Abdullahi, commended FIRS’ achievements, encouraging the agency to study South Africa’s tax collection model, which generates higher revenues despite a smaller population.
“We’ll fully support your tax reforms, but you need to bring more citizens into the tax net, especially from the informal sector,” he said.
However, Hon. Benedict Sapele expressed dissatisfaction, suggesting that FIRS could increase its revenue target to ₦60 trillion by 2025, stating, “If we do well, we won’t need to borrow to fund our budget.”
In response, Adedeji emphasised that multiple agencies collecting taxes could lead to leakages, which could be addressed through the passage of the progressive tax bill.
“I’m not in favour of taxing the informal sector without first formalising it. We need to transition it into the formal economy before implementing tax measures,” he said, stressing the need to expand the taxpayer base.