The Federal Inland Revenue Service (FIRS) has announced a projected revenue target of N25.2 trillion for 2025, reflecting a significant increase from the N21.6 trillion collected in 2024. This ambitious target highlights the Service’s ongoing efforts to strengthen government revenue through improved tax administration and strategic reforms.
FIRS Executive Chairman, Dr. Zacch Adedeji, made this known during the opening of a two-day workshop themed “Tax Expenditure and its Effects on Government Revenue.” Represented by Bola Akintola, Coordinating Director of the Corporate Services Group, Adedeji noted that the FIRS continues to face mounting pressure to generate more revenue, especially as contributions from certain Ministries, Departments, and Agencies (MDAs) continue to decline.
He revealed that the Service currently contributes an average of over 60 percent of the total monthly inflow to the Federation Account, attributing this performance to a range of proactive policy decisions and reform initiatives that have been implemented in recent years.
However, he also pointed out the growing concern over revenue loss linked to tax incentives, which he said remain difficult to quantify due to a lack of reliable data. This issue underscores the importance of developing stronger mechanisms for tracking and evaluating tax expenditure.
In a paper titled “Nigerian Experience in Tax Expenditure Reporting – Achievements and Challenges,” Ikata Oyekuodi John, Head of Tax Expenditure Management at FIRS, explained that effective fiscal policy requires a delicate balance between offering tax incentives and maintaining consistent, sustainable revenue generation. He emphasized that tax expenditure reporting plays a crucial role in assessing the cost and impact of incentive policies, helping to guide better decision-making.
As FIRS looks toward 2025, its focus remains on enhancing transparency, improving data-driven reporting, and ensuring that Nigeria’s tax system supports long-term economic stability.
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