The National Assembly has increased the Federal Inland Revenue Service (FIRS) revenue target for 2025 to N25 trillion after the agency surpassed its 2024 target of N19.4 trillion, as revealed by its Executive Chairman, Zacch Adedeji.
Adedeji, while presenting the agency’s performance report and future projections on Wednesday, highlighted the record-breaking revenue collection.
In response, the National Assembly’s Joint Committee on Finance proposed the new target, aiming to build on FIRS’s momentum.
Deputy Chairman of the House Committee on Finance, Hon. Saidu Musa Abdullahi, praised the agency’s achievements, calling its performance “unprecedented.”
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He urged FIRS to adopt elements of South Africa’s tax model, which generates higher revenue despite having a smaller population.
“We will fully support your tax reforms, but it’s crucial to bring more taxable citizens, particularly from the informal sector, into the tax net,” Abdullahi added.
However, Benedict Sapele expressed concerns, arguing that FIRS has the potential to set a much higher target.
He suggested that with greater effort, the agency could aim for N60 trillion in revenue by 2025, adding, “If we perform well, we can avoid borrowing to fund our budget.”
In his response, Adedeji emphasised the need for reforms, cautioning against taxing the informal sector without formalizing it.
“Multiple tax-collecting agencies often lead to revenue leakages. The progressive tax bill is essential to addressing this issue,” he said.
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He also stressed the importance of expanding the taxpayer base and transitioning the informal sector into the formal economy before implementing new tax measures.
The new revenue target reflects the government’s push for fiscal sustainability and reduced dependence on borrowing to fund national budgets.
