The Federal Inland Revenue Service (FIRS) has reported a significant growth in tax revenue from the non-oil sector, collecting N4.396 trillion in 2021, up from N2.507 trillion in 2017.
This was revealed by FIRS Chairman Muhammad Nami in the Service’s 2021 performance update, highlighting a surge in non-oil tax contribution from 38% in 2017 to 69% in 2021.
Strategic Reforms Drive Tax Growth
Nami attributed the revenue boost to strategic reforms, most notably the implementation of the TaxPro Max digital platform. “This feat was made possible due to the adoption of the in-house built TaxPro Max Solution and other strategic reforms implemented by the Service,” he said.
TaxPro Max offers a fully automated process for tax registration, payment, and filing. It also streamlines withholding tax credits and tax clearance issuance, significantly improving efficiency for both taxpayers and FIRS staff.
Recovery After a Challenging 2020
The FIRS chairman noted that the 2021 corporate income tax performance was based on the economic activities of 2020, a year marked by a COVID-19-induced recession and EndSARS protests, which severely affected business operations.
“In 2020, many businesses struggled to stay afloat, resulting in an eroded tax base,” Nami said. “Despite this, the Service’s reforms ensured a rebound in 2021.”
A Milestone Year for Tax Administration
Describing 2021 as a milestone year, Nami said the automation introduced by TaxPro Max enabled greater transparency, compliance, and revenue mobilization, supporting Nigeria’s ongoing shift away from oil dependency.
