FIRS, Customs collect N12.7 trn revenue in 2022
Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS), two important departments of the Federal Government (FG), increased their revenue collection to N12.7 trillion in 2022, up 46.8% from N8.7 trillion in 2021.
The Department of Petroleum Resources (DPR), formerly known as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), received 2.6 percent of the total amount collected (N462.81 billion) as the cost of collection during the period, according to data from the National Bureau of Statistics (NBS).
This is an increase of 29.6% Year-on-Year (YoY) from the N329.34bn (3.81 percent of 2021 total income) that the agencies withdrew as cost of collection in 2021.
In addition to other sources of income, the agencies assist the government in collecting money from Value Added Tax (VAT), oil revenue, Company Income Tax (CIT), and other taxes.
The breakdown revealed that the FIRS got N200.16 billion, or 2% of total generating, as collection costs in 2022 despite collecting N10.1 trillion in revenue.
The Nigerian Customs Service (NCS), which came in second with N2.60 trillion in revenue generation, withdrew N128.64 billion (5%) as cost of collection, with NUPRC receiving the least at N98.01 billion despite having no available information on its revenue collection on its website. This marks an increase of 17.4% from the N83.51 billion the agency collected in 2021.
Recall that the federal government had added several adjustments to the Finance Act 2022 in an effort to increase revenue collection. Under the Finance Act, digital assets, including cryptocurrencies, would be recognized as chargeable assets and gains accruing from the disposal of such digital assets are subject to capital gains tax at a rate of 10%; increase in Tertiary Education Tax (TET) rate from 2.5 percent to 3.0 percent; increase in the corporate tax rate of companies engaged in gas flaring from 30 percent to 50%; and levy of 0.5 percent was imposed on all eligible goods imported into the country.
Among other things, taxes were imposed on Non-Resident Companies (NRCs) with a presence online in Nigeria.
