Nigeria eyeing 77% increase in IGR: Finance Minister

The Minister of Finance, Wale Edun, says the federal government is targeting a 77 per cent increase in internally generated revenue (IGR).

Mr Edun, the coordinating minister of the economy, said this on Wednesday in Abuja, at the opening of the 2024 Strategic Management Retreat of the Federal Inland Revenue Service (FIRS).

According to Mr Edun, tax plays an integral role in the government’s quest to boost revenue that will help bridge infrastructure deficit, and build social safety nets that will cater to ordinary Nigerians.

He commended the management of the FIRS for its commitment towards meeting its set revenue target.

“It is commendable that the FIRS is holding this retreat at the beginning of the year to rub minds on how to increase government revenue. We are projecting a 77 per cent increase in IGR. Our revenue as a percentage of gross domestic product (GDP) is low at below 10 per cent. It should be much higher.

“Government needs so much to spend on infrastructure and social services. The idea is to shift from expensive debts to domestic revenue mobilisation,” he said.

FIRS executive chairman, Zacch Adedeji, said the retreat was a historic moment to unveil the new FIRS organisational structure, with the commitment to revolutionise tax administration in Nigeria.

According to Mr Adedeji, the cornerstone of this paradigm shift is the establishment of a customer-centric organisational structure designed to streamline processes and enhance efficiency in tax operations.

The FIRS boss stated, “We are not merely adapting to change; we are leading it. The forthcoming structure set to kick off from February, embodies our dedication to modernise and digitise the tax administration landscape in Nigeria.

“In our pursuit for a more efficient and contemporary tax administration methodology, we are embracing an integrated tax approach, leveraging technology at every step.”

Mr Adedeji noted that this approach “positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world.”

He said the structure advocated for a comprehensive approach to taxpayer services, consolidating core functions and support under one umbrella.

The FIRS chair added, “By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience. No more complexities, no more overlapping, just a seamless and user-friendly interaction for every taxpayer.

“In a groundbreaking move, we are shifting away from traditional tax categorisation. Instead of maintaining different departments for distinct tax categories, the new structure formulates taxpayer segments based on thresholds.”

Mr Adedeji noted that this tailored approach “ensures that taxpayers are guided and serviced according to their specific needs, eliminating confusion and redundancy in tax administration.”

According to Amina Ado, the coordinating director of the Special Tax Operations Group, the FIRS has a revenue target of N19.4 trillion.

Ms Ado said the service surpassed its 2023 target ofN10.7 trillion and generated N12.37 trillion.

She said the 2024 target of N19.4 trillion can be achieved partly through improved management by large taxpayers and sector contributors.

(NAN)