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Nigeria crosses ₦10trn tax revenue mark
Despite crossing the 10 trillion Naira tax revenue mark for the first time, Nigeria's Federal Inland Revenue Service still fell short of their 10.4 trillion Naira target for the year. Receipts from oil taxes represented 41 per cent of the collection, while non-oil tax accounted the major chunk at 59 per cent. Vincent Okuokoni, Senior Manager, Commercial Practice Group at Andersen Nigeria joins CNBC Africa for this discussion.
Fri, 27 Jan 2023 15:18:15 GMT
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AI Generated Summary
- The Federal Inland Revenue Service falls short of its 10.4 trillion Naira target for the year despite crossing the 10 trillion Naira tax revenue mark
- Oil taxes represent 41 percent of the total collection, while non-oil taxes account for the remaining 59 percent
- Vincent Okuokoni emphasizes the importance of focusing on non-oil taxes and leveraging technology for enhanced tax compliance
Nigeria's Federal Inland Revenue Service has marked a significant milestone by surpassing the 10 trillion Naira tax revenue mark for the first time in history. Despite the achievement, the agency still fell short of its 10.4 trillion Naira target for the year. The data released showed that receipts from oil taxes accounted for 41 percent of the total collection, with non-oil taxes making up the remaining 59 percent. There is optimism in the Nigerian tax space as Vincent Okuokoni, Senior Manager, Commercial Practice Group at Andersen Nigeria, joined CNBC Africa for a detailed discussion on the recent tax revenue figures.
The Federal Inland Revenue Service came close to hitting its ambitious target, showcasing growth in tax collection, particularly in the non-oil sector. The agency has been diligently working towards enhancing tax compliance and efficiency to boost revenue collection across the country.
Vincent Okuokoni highlighted the importance of diversifying Nigeria's revenue sources by focusing on non-oil taxes, which have emerged as a significant contributor to the overall tax revenue. The discussion dwelled on the key takeaways from the latest tax report and the strategic interventions required to bridge the gap with the revenue target.
While the Federal Inland Revenue Service celebrated its milestone achievement, the agency remains committed to further streamlining its operations to ensure better tax administration and compliance. The non-oil sector has demonstrated resilience and growth potential, signifying a shift towards a more sustainable revenue generation model for Nigeria's economy.
Vincent Okuokoni emphasized the need for continuous investment in technology and capacity building to strengthen tax compliance and enforcement measures. Leveraging digital tools and platforms can help improve tax administration processes and facilitate better data-driven decision-making within the revenue service.
As Nigeria aims to enhance its tax revenue base and improve fiscal sustainability, the focus on non-oil taxes gains prominence in the country's economic agenda. The Federal Inland Revenue Service's performance reflects progress in tax reform and administration, signaling positive momentum towards achieving long-term revenue targets.
In conclusion, Nigeria's strides in tax revenue collection underscore the importance of fostering a conducive tax environment, promoting voluntary compliance, and harnessing technology to drive revenue growth. The Federal Inland Revenue Service's commitment to optimizing tax administration sets the stage for sustainable fiscal development and economic prosperity in the country.
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