By Milcah Tanimu

The Federal Inland Revenue Service (FIRS) has announced that it generated a record N5.5 trillion in tax revenue in the first half of 2023. This marks the highest tax collection ever recorded by the service for any first six months of a fiscal year.

The tax revenue was broken down into N2.03 trillion from the oil sector, achieving 88% of the target, and N3.76 trillion from non-oil taxes, surpassing the target. In June 2023 alone, the service collected N1.65 trillion in tax revenue, the highest ever for a single month.

The executive chairman of FIRS, Muhammad Nami, attributed the performance to improved voluntary tax compliance, aided by the automation of the agency’s tax administrative processes. He also expressed optimism for better performance in the second half of the year, given the ongoing improvements in tax administration processes and positive impacts of government policies on the economy.

In 2021, the FIRS reported generating N6.4 trillion in revenue, and in 2022, it recorded its highest-ever tax collection of N10.1 trillion.