Written by Rabiu Usman In comparison to the first half of 2023, Nigeria’s revenue jumped to over N9.1 trillion in the first half of this year, according to President Bola Tinubu. For example, N5.2 trillion was deposited into the Federation Account between January and June of 2023, while a total of N7.3 trillion was deposited between July and December of the same year.
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Accruals into the Federation Account, however, increased to N2.483 trillion in June 2024 for this year. It was N2.324.792 trillion in May, which means that almost N4.8 trillion was deposited into the Federation Account for the two months of May and June of this year alone, compared to N5.2 trillion for the first half of last year.
The President credited the government’s efforts to prevent leaks, automate processes, and creatively mobilize funds without adding to the burden on citizens for the revenue gain. The World Bank confirmed the progress being made in the area of revenue generation a few days after the President spoke eloquently about the significant increase in the nation’s revenue, which is being driven by the Federal Inland Revenue Service (FIRS), which is chaired by Dr. Zacch Adedeji, the tax collector for Nigeria’s Zaccheus.
According to World Bank projections, Nigeria’s revenue-to-GDP ratio may improve to more than 10.5% by the end of 2024 as a result of the recent increase in government revenue. During an interactive session on “Fiscal Reforms for a More Secure Future” at the 30th Nigerian Economic Summit, which took place in Abuja last month, Ndiamé Diop, the World Bank’s country director for Nigeria, presented the forecast.
Additionally, the National Bureau of Statistics (NBS) reported in September that Nigeria’s Value Added Tax (VAT) revenue grew by 99.82% in the second quarter of 2024 compared to the same period the previous year. In comparison to the previous quarter, the overall VAT revenue during this time period increased by 9.11% to N1.56 trillion.
According to the NBS data, local payments accounted for the majority of the income growth, generating almost $484 million, while overseas payments provided $242 million. Import VAT brought in $228 million. But even with the amount of development that has already been made, Dr. Zacch Adedeji’s FIRS is not finished. Every day, new developments are made to guarantee that Nigerians can pay their taxes easily.
In an effort to transform taxpayer interaction and access to crucial tax services, the FIRS Taxpayer Services Department introduced the new USSD code *829# last week. The project was designed to “simplify tax processes and provide a seamless, efficient service experience,” according to the FIRS.
Taxpayers can now easily access a variety of services, such as TIN retrieval, Tax Clearance Certificate (TCC) verification, and general questions, from the comfort of their mobile phones and without the requirement for internet access, by using the *829# USSD code. Additionally, Zacch Adedeji is everywhere, outlining the four tax measures that are presently before the National Assembly and guaranteeing that they won’t lower government agency budget or operational effectiveness.
Adedeji spoke to the leaders of the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA), and the National Agency for Science and Engineering Infrastructure (NASENI) at the Revenue House in Abuja on Wednesday of last week. By stating that the reform is meant to increase and streamline agency efficiency, he allayed worries about the proposal to rename the FIRS as the Nigeria Revenue Service (NRS).
According to him, the major objective was to make sure that all agencies have adequate funding and are operating efficiently by bringing government revenue procedures into line with present fiscal demands. Adedeji went on to emphasize that the new law will free up government organizations to focus on their primary duties rather than the burdensome process of collecting taxes.
He clarified that after the legislation are passed, agencies will be free to concentrate on their core responsibilities rather than doing tax collecting tasks. Adedeji, who seems to have taken on the role of Explainer with regard to the new tax legislation, went on to say that the bills were the result of President Tinubu’s government realizing that a unified tax code was necessary to simplify the tax system and boost economic expansion.
Since he believes that the nation’s income base must continue to grow, it is possible that by the time this is read, Dr. Zacch Adedeji will be in front of another group of people to discuss the concepts underlying the new tax laws and how they might further increase it. Usman is an Abuja-based public affairs analyst.
