The Federal Inland Revenue Service (FIRS) has received a new revenue target of ₦25 trillion for the 2025 fiscal year, following its record-breaking performance in 2024, where it surpassed the ₦19.4 trillion revenue target set by the 2024 Appropriation Act.
The announcement was made during a presentation by FIRS Executive Chairman Zacch Adedeji to the National Assembly’s joint Committee on Finance on Wednesday.
Adedeji attributed the agency’s success to ongoing tax reforms and efficient collection strategies.
Deputy Chairman of the House of Representatives Committee on Finance, Hon. Saidu Musa Abdullahi, praised the FIRS for its unprecedented achievement, urging the agency to study South Africa’s tax model to optimize revenue collection.
“We shall give you total support on your tax reforms, but you need to bring more taxable citizens into the net from the informal sector,” Abdullahi emphasized.
However, Hon. Benedict Sapele expressed reservations, suggesting that the FIRS could aim higher, proposing a target of ₦60 trillion by 2025. “If we do well, we will not borrow to fund our budget,” he argued.
In response, Adedeji highlighted the need for a measured approach, cautioning against taxing the informal sector without formalizing it first.
“We need to transition the informal sector into the formal economy before implementing tax measures. Our focus should be on expanding the taxpayer base,” Adedeji explained. He also called for the passage of the progressive tax bill to address leakages caused by multiple tax-collecting agencies.
The FIRS’s success comes amid efforts by the National Assembly to boost revenue generation across key agencies.
Lawmakers also recently proposed a ₦12 trillion target for the Nigerian Customs Service, reflecting a broader push to reduce dependence on borrowing to fund the national budget.
As the FIRS works toward achieving its new target, the focus will remain on reforms and expanding the nation’s taxpayer base to sustain this upward trajectory.