FIRS Expands Tax Net, Enrolls 170,000 New customers In Less Than 12 Months

L-R: Mrs Dapo Awolowo (Head, Office of the Special Adviser on Media to the Chairman, Federal Inland Revenue Service, FIRS); Mr. Dare Adekanmbi (Special Adviser on Media to the FIRS chairman); Mr. Charles Okonji, National Chairman, Commerce and Industry Correspondents Association of Nigeria (CICAN); Mr. Femi Olarinde (Special Adviser on Tax Policy) and Mr. Sikiru Akinola (Technical Assistant, Media) at the FIRS Media Parley with CICAN members in Lagos on Thursday, July 11, 2024.

The Federal Inland Revenue Service, FIRS, has achieved remarkable success in simplifying tax processes and thereby increasing number of tax payers by over 170,000 in less than 12 months.
This was disclosed by Special Adviser to the Executive Chairman of FIRS on Tax Policy, Mr. Femi Olarinde at an interactive session with Commerce and Industry Correspondents Association of Nigeria, CICAN in Lagos on Thursday.
Olarinde said the increase was made possible by the new strategies put in place by the FIRS management ably led by Dr Zacchaeus Adedeji which has simplified the processes.
He said FIRS will continue to simplify the system, by what is called the National Single Window which is introduced to make customers centre of activities.
He said :” We are revolutionizing the tax office operations into streamlined one stop-shops to cater for diverse tax payers by their categories in order to enhance customers’ satisfaction.
According him the move would reduce the cost of administration for the Service as well as the cost of compliance for its customers.
Olarinde disclosed that tax payers no longer need to visit different tax offices before they pay their taxes, adding that all that a tax payer needed to do was to walk into any of the FIRS offices and conduct all his or her tax affairs there.
“Before now, we used to have what we call the Stamp Duty Office, we have the Value Added Tax Office and several other offices. So, a tax payer that wants to do all tax affairs had to go to different offices just to fulfill that obligation. But right now, even with a click of a button, you don’t even need to go to an office, a click on a button, you complete all your affairs.
“There are situations where you automate things but the people who will respond to you are still different people but right now, even with automation, it’s still the same people that call for it. When there’s need for a check, which we call audit, it’s still the same set of people that have your information that still come back. Before now, we used to have audit in another group entirely and so, you will be relating with some set of people and another set needs to check you and they ask you for information you already have produced to them. So, this is to make things easy for our tax payers”, he said.
Further Olarinde said, “We have a complaint system where customers can send in complaints and they will be resolved. Complaints have been reduced by 18 percent and even more. A lot of complaints have been resolved, 3,148 of them and we keep getting better”.
In the area of revenue collection, the Special Adviser said, “In 2023, we were given a target of N11.5 trillion, we collected N12.36 trillion which is 107 percent of our collection and in this year, we were given a target of N19.4 trillion and I make bold to tell you that at the end of the first quarter of this year, which is March, we had already collected 81 percent of the quarter’ s target, even though first quarter are usually low period.
“We have a peak period and we have off peak period and the first quarter is one of the off peak period. So, if someone has been able to get up to 81 percent in off peak period, you can imagine what happens in the peak period. June normally is the peak period and right now, we are collating the figures and very soon, you are going to see the result and we are certain that we are going to go beyond target that has been set for the second quarter.
“So, what have we collected even with 81 percent? For the first quarter of 2023, we had collected N2.5 trillion while in the first quarter of 2024, we had collected N3.94 trillion which is more than what we collected in 2023 by N1.42 trillion even more than last year which is 56 percent higher than first quarter of 2023..
“We have enhanced our processes, our automation system, integrated nine new modules on our novel technology called Tax Pro Max. This is the technology that we use to administer taxes and for you to know, that technology was designed in-house because we also encourage innovation and we will continue to expand that. And within one year, we have expanded that module with nine other modules because of the drastic investment in that area and because the Chairman wants things to be easy.”
He revealed that the strategy drivers for the Service had been focused on people, technology and processes insisting that “When you have customers and staff who are running the process everyday, and you need them to be doing hard work, now it’s no longer necessary, you need them to be working smart. So, what do you need to do? You introduce technology, it makes it efficient and transparent so that everyone knows what to expect thereby making the process seamless.”
Olarinde, however, maintained that the Service was committed to fair tax administration through responsive and accessible services to optimize revenue for national development even as he insisted that fairness was the game of taxation.
“One of the principles of taxation is equity and fairness. So, everyone should be treated equally especially when it comes to taxation, they should be able to access the service and our vision is to be the world’s most efficient and trusted revenue service. And your role in this vision is very critical. How will people trust us as FIRS? This is part of us showing accountability and accountability is telling people what you are doing with the trust that they have given you. We remain committed to our mission and vision”, Olarinde concluded.