By Adewole Kehinde
In 2022, the Federal Inland Revenue Service made N10.1 trillion in revenue. This was a 57.75% year-on-year growth from N6.4 trillion in 2021 and a 100% increase from N5 trillion recorded in 2012.
Of the N10.1 trillion, petroleum profit-related taxes had the highest collection at N4.4 trillion and a 103% increase from the 2021 collections of N2.01 trillion. Company Income Tax and VAT reeled in N2.83 trillion and N2.51 trillion, respectively, while electronic money tax stood at N125.67 billion, representing a 17.85% increase.
The figure represents the highest tax collection ever recorded in the history of the service and any other revenue agency in the country.
This is the first time the service would cross the N10 trillion mark in tax revenue collection. Nami said the service would have surpassed its projection for 2022, but for the various tax incentives granted under the respective laws, which amounted to N1.81 trillion. He added that this was not part of the total tax receipt for the year under review. Nami also said political interest and distractions, including litigations against the service, hindered its tax collection drive last year.
I strongly agreed with the FIRS chairman, Nami that there is a need for the three tiers of government to discuss the possibility of harmonizing the country’s tax system. He said the global best practice was to have a single tax authority with a single technology to drive tax administration.
I recall that Nami attributed the historic tax performance to the dogged implementation of strategic reforms over the past two years; a renewed commitment by officers of the service, accompanied by a boosted morale, as well as the innovative deployment of technology for automation of both tax administration and operational processes.
To quote him, Nami said, “This collection was possible through collaboration with our stakeholders, from our colleagues at the executive branch of government to the members of the judiciary, to our brothers and sisters at the National Assembly as well as the tax advisory committee, professional bodies, unions, and, most crucially, our taxpayers.”
He reiterated that the FIRS would build on the current reforms, achieve full automation, and continue to establish a resilient service that would continue to provide sustainable tax revenue to fund the government.
He added, “We intend to maintain, and even improve on the momentum in 2023. We have peaked, but this is not certainly our peak. I hope that this would be the least sum the service would ever collect going forward.
“Our goal is to identify more areas where we can improve on in the delivery and efficiency of our collection, and plug loopholes while deploying innovative reforms in data and artificial intelligence.”
“Ultimately, we believe that the FIRS can shoulder the responsibility of providing the revenue needed for the governments across the federation to cater to the needs of the Nigerian people through taxes.
“This is feasible once we get the much-desired support from the three tiers and arms of government, as well as all stakeholders.”
The laudable achievement could only come from a well-trained Tax, Accounting, and Management Professional with highly rated qualifications and professional practicing licenses from relevant professional bodies in the person of Muhammad M. Nami.
Mr. Muhammad is an expert in rendering advisory support services to investors in respect of new businesses. He has also continuously rendered outsourced services to clients in both the trading, service, and manufacturing sectors of our economy.
Mr. Muhammad Nami attended Bayero University, Kano, and Ahmadu Bello University where he obtained a Bachelor’s Degree in Sociology (1991) and a Master of Business Administration (2004) respectively.
He is a Fellow of the Chartered Institute of Taxation of Nigeria, the Chartered Institute of Forensic and Investigation Professionals of Nigeria, the Institute of Debt Recovery Practitioners of Nigeria, and an Associate Member of the Nigerian Institute of Management (Chartered) and Association of National Accountants of Nigeria.
He started his career with PKF in 1993 and rose to the position of a Senior Consultant in charge of Tax management and advisory services. He was also the Managing Consultant of Manam Professional Services (Chartered Tax Practices and Advisers) based in Kaduna, Abuja, and Minna from October 2018 to December 2019.
Mr. Muhammad also served on many companies’ Board and Statutory Board Audit Committees. He was appointed as a member of, the Presidential Committee on Audit of Recovered Stolen Assets in November 2017 by President Muhammadu Buhari.
The President appointed him as the Executive Chairman of the Federal Inland Revenue Service (FIRS) on 9th December 2019. In addition, Mr. Nami is also the Chairman of, the Joint Tax Board (JTB) and Chairman of the African Tax Administrators Forum (ATAF). These added feathers confer on him the enviable responsibility of contributing to the economic growth and development of the continent of Africa.
Mr. Muhammad Nami has since proved bookmakers right that he is more than equal to the task. The reforms he is implementing at FIRS attest to his dexterity, visionary leadership, and patriotism.
Adewole Kehinde is a public affairs analyst and publisher of Swift Reporters based in Abuja. He can be reached via 08166240846 and kennyadewole@gmail.com
